Are you self-employed and want to invest your savings while lowering your taxes? Maybe you’re a realtor, interior designer, or a TikTok influencer, and you want to finally create your own retirement plan. Is Solo 401(k) or SEP IRA better for you? In this article, I’m going to share a side by side comparison of the Solo 401(k) vs SEP IRA. These are the two most popular ways you can save if you’re self-employed.
What is a Solo 401(k)?
A solo 401(k), also called an individual 401(k), is a retirement plan for just yourself. If you are self-employed or if you and your spouse are the only two employed in the business then this option may suit you.
What is a SEP IRA?
A SEP IRA (simplified employee pension) is a retirement plan that will suit you if you have your own business and have a small number of employees. You can contribute to your retirement savings and do the …