SEP IRA vs Solo 401(k): Which Makes You Rich?
The answer is…it depends!
One nice thing, the government does help you in both types of plans. Uncle Sam, with both the SEP IRA and the solo 401(k) retirement plans, allows your investment in your tax-favored retirement:
- to be deductible when you invest the money in the plan,
2. grows tax-deferred inside the plan, and
3. suffers taxes only when you take the money from the plan.