solo 401k vs sep ira calculator

Information contained in these sections merely highlight some benefits.
If this sounds like you then keep it simple and an introduction to cardiovascular physiology levick pdf set up a SEP IRA.
Retirement rule of thumb When planning your retirement saving and investing approach, consider this rule of thumb first - if youre an employee, always contribute the amount necessary to receive the employer match.
Solo 401k, features : In 2015 there is 53,000 maximum contribution (59,000 if age 50 due to a "catch-up" provision).
There are risks involved with all investments that could include tax penalties and risk/loss of principal.In 2015, participants in an Solo 401k can contribute up to 100 of the first 18,000 (24,000 if age 50) of W-2 compensation or net self employment income for a sole proprietorship.Complete the form below and a BCM Advisor will promptly respond to your inquiry.All site content BCM.A SEP provides high maximum contribution limits, but an Solo 401k may allow a greater contribution at the same income level.Whatever amount you put into the SEP-IRA is simply put onto line 28 and becomes an above the line (the line is line 38-adjusted gross income) deduction. .

Solo or Individual 401Ks were introduced in 2002. .
Many companies often offer what's called a 401(k) match, in which they contribute additional money on top of your own contributions as an employee benefit and incentive for employees to increase their own contributions.
Simply stated there are 2 primary advantages of the Solo 401k over the SEP IRA.
Who would be appropriate for a SEP IRA?
For those age 50 there isn't an additional 6,000 catch-up contribution provision like there is with the Solo 401k.With a, solo 401(k plan loan, you are actually paying yourself back and can use the loan funds for any purpose, like paying for unexpected emergencies).Further, employers can contribute up to 25 of the employees contribution into their SEP IRA account with a 53,000 cap for 2016.Employee and employer, employer only 2016 contribution limits, employees may contribute up to 18,500 with 6,000 additional for those over age.(59,000 including catch-up contributions).By starting early, and contributing as much as possible, youre setting yourself up for a secure financial future.Saving for retirement has transitioned from the historical defined benefit pension plan where your employer took care of the future with a nice pension plan, to youre on your own.