Directed IRA Podcast
Solo 401(k) or SEP IRA: Determining the Best Retirement Strategy for the Self-Employed
Jul 25, 2024
Discover the differences between Solo 401(k) and SEP IRA for self-employed individuals. Learn how to maximize contributions and navigate nuances in retirement planning. Gain valuable insights on choosing the best retirement strategy for your financial future.
24:12
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Quick takeaways
- The solo 401k offers higher contribution limits of up to $69,000 yearly compared to the SEP IRA.
- Combining Roth and traditional IRA contributions with the solo 401k can maximize retirement savings.
Deep dives
Solo 401k and SEP IRA Comparison
The solo 401k and SEP IRA are compared in the podcast. While the SEP IRA is an old-school strategy originating from self-employed pension, the solo 401k is highlighted as the preferred choice, especially for self-employed individuals without employees. The solo 401k allows substantial contributions, up to $69,000 a year, offering more flexibility and higher contribution limits compared to the SEP IRA.
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