Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

Solo 401(k) vs. SEP IRA

Comparing solo 401(k)s and SEP IRAs for the self-employed.

By Motley Fool Retirement Team – Updated Nov 26, 2024 at 12:07AM

Key Points

  • A solo 401(k) lets self-employed people save up to $70,000 in 2025, with higher limits for those 50 and older.
  • A SEP IRA requires business owners to contribute the same salary percentage for each employee, including themselves.
  • Under new Secure Act 2.0 rules, both pre-tax and Roth structures are available for solo 401(k)s and SEP IRAs.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.