Eyerishgold
Recycles dryer sheets
- Joined
- Aug 14, 2007
- Messages
- 224
I'm trying to decide between a SEP IRA and a Solo 401k. From what I understand, contribution limits for the SEP is either 25% of compensation or $51k, whichever is less. As far as the Solo 401k goes, I know I can contribute up to $17,500 as an employee and $17,500 as an employer. Also, both are deductible as a business expense.
I'm wondering if anybody has experience with one or both types of plans. I haven't looked into the fees for a solo 401k but it seems like they'd be higher than a SEP. Also, once the account tops $250,000 I've heard there additional government reporting is required for the solo 401k. I'm not completely sure what the additional reporting would consist of.
Additionally, I'm not sure if I'm missing anything or have overlooked any advantages/disadvantages of either plan.
I'm wondering if anybody has experience with one or both types of plans. I haven't looked into the fees for a solo 401k but it seems like they'd be higher than a SEP. Also, once the account tops $250,000 I've heard there additional government reporting is required for the solo 401k. I'm not completely sure what the additional reporting would consist of.
Additionally, I'm not sure if I'm missing anything or have overlooked any advantages/disadvantages of either plan.