Solo 401(k) vs. SEP IRA

Pay your future self instead of the IRS

Both plans can shelter tens of thousands of dollars a year. The right one depends on your income, your age, and your timing — and picking well can mean double the deduction at the same income.

The 60-second decision

• Income under ~$100K and want the biggest deduction? Solo 401(k) — the employee deferral stacks on top of the employer percentage.
• Age 50 or older? Solo 401(k) — the SEP has no catch-up contributions.
• Already January and you want last year’s deduction? SEP IRA — it can be opened as late as your filing deadline.

What’s in the guide

A full side-by-side with current-year limits, deadlines, Roth options, and paperwork differences — plus a worked example showing how the same income supports very different contributions in each plan.

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