A major part of retirement planning is choosing which type(s) of retirement accounts you want to use to hold your savings and ...

Two retirement plan options for employees of small businesses are the simplified employee pension (SEP) IRA and the solo 401(k)— both of which are tax-deferred plans.

Compare solo 401(k) vs. SEP IRA to find the best retirement plan for your needs. Learn about benefits, limitations, and rules.

SEP IRA vs. Qualified Retirement Plan: ... an employer must choose a 401(k) plan to allow participants to make salary-deferral contributions to their accounts.

Unlike 401(k) plans, the funds in a SEP IRA cannot be used as collateral for loans. As soon as a contribution is made to a SEP IRA, the money is considered 100% vested and owned by the employee.

A Simplified Employee Pension (SEP) IRA is a retirement plan that business owners and self-employed persons can establish. Employers can contribute 25% of an employee's annual compensation to a ...

A SEP IRA could be an ideal retirement plan if you own your own business and don’t hire other employees. About 16.5 million people in the U.S. are self-employed, according to 2023 data from the ...

The SEP IRA is a simple retirement plan for small businesses. A better option for individual business owners with no employees may be a Solo 401(k).

However, if you’re at least 50 years old, the overall limit is $73,500 in 2023 with a solo 401(k) plan. In addition, with a SEP IRA, the entire limit is based on 25% of compensation.

However, there are some restrictions. Solo 401(k) plans lose their status if the business hires full-time employees other than the owner or spouse, triggering the need to comply with more complex ...