Optimal retirement accounts for self-employed?

[dancalio]

I'm currently running a sole-proprietership and I will likely turn it into an S-Corporation in the future.

Could somebody help me figure out the optimal tax-advantaged setup for myself?

I've got the roth ira setup. And then I think I can set up a sep-ira and contribute up to 14K a year (no more than 25% of salary).

I also heard about a 401 K for my situation to be used either instead of the sepira or in addition to the sep ira.

I've been wondering about this for some time but I need to make things more concrete soon.

Thanks for any help,
Daniel

 

[brewer12345]

If you are the sole proprietor, go with a solo 401k instead of a SEP. You can defer the most dough pre-tax with a solo 401k. I haven't found a lower cost provider than Fidelity.