SEP IRA vs Solo 401(k)

Solo 401k has higher limits; SEP is simpler.

Winner: Tie

Category Breakdown

Category	SEP IRA	Solo 401(k)
Contribution Limits Solo 401k allows higher contributions.	4.3	4.8
Setup Ease SEP IRA is simpler to set up.	4.7	4.2
Roth Option Solo 401k has Roth option.	3	4.5
Loan Option Solo 401k allows loans.	3	4.3

FAQs

Which allows more savings?

Solo 401k allows more, especially at lower incomes.

Which is easier?

SEP IRA is simpler to set up and manage.

Related Comparisons

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Guideline easier to set up and manage, Vanguard lower long-term fund costs.

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SEP IRA simplest, Solo 401k highest limits, SIMPLE IRA rarely best for solo.

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SEP for higher contributions, Roth for tax-free growth.

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Solo 401k has higher limits and control, employer 401k may have matching.

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Last updated: January 18, 2026

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