A SEP-IRA or a Solo 401(k) Plan – Which is Better?

A SEP-IRA or a Solo 401(k) Plan – Which is Better?

By: David I Gensler, MSPA, MAAA, EA

Fortune Magazine recently ran an article touting the benefits of a Solo 401(k) over a SEP-IRA for sole proprietors or single member LLCs with no employees. And for those of you who are sole proprietors or single member LLCs who are looking to maximize your contribution (and thus your tax deduction), the Solo 401(k) is probably the way to go. The article does an excellent job of detailing the distinctions between the two types of retirement plans. I have some thoughts of my own to add. But first, let’s analyze each type of plan. Read More