Investing
4 months ago
Solo 401k vs SEP IRA for a sole proprietor — which lets me save more?
23
I'm self-employed with no employees and want to maximize my retirement contributions. I made $160k net profit last year. Between a Solo 401k and a SEP IRA, which one lets me contribute more? I've read that Solo 401ks allow both employee deferrals ($23,500 for 2026) plus employer contributions (25% of compensation), while SEP IRAs only allow the employer portion. Is that right?
DR
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