As a self-employed individual or a small business owner you have several alternatives to consider in selecting the right retirement plan that fits your needs and objectives. The two most common choices are a Simplified Employee Pension (SEP) and a solo 401(k). Contributions to either plan are tax-deductible and allow for the tax-deferred growth of your contributions and the investment earnings.
Choosing the right retirement option can be confusing, and the subtle but very important differences between the plans can often be overlooked.
Many defer to the SEP because it is easier to set up than a 401(k), which is more complex …read more
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