Article Date:
February 2021


Word Count:
1127

 

 

SEP IRA vs Solo 401(k): Which Should You Choose?


How do you multiply your net worth?

 

Let the government help.

 

Here’s how: with both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement

 

·

creates tax deductions for the money you invest in the plan,

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grows tax-deferred inside the plan, and

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suffers taxes only when you take the money from the plan.

 

Example. You invest $1,000 a month in your retirement. You are in the 40 percent tax bracket (combined federal and state), and you earn 10 percent on your investments. At the end of 30 years, you have $1.58 million in after-tax spendable cash, which comes from (in round numbers):

 

·

$1.2 million in after-tax cash from the retirement plan ($2 ... Log in to view full article.

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