SEP IRA vs SOLO 401k

Hey everyone, Boris Musheyev here.

In this video we are going to talk about a tax strategy that Involves a SEP IRA and a solo 401k. One versus another.

BIG BIG DISCLAIMER: This strategy will only work if you are a one person owner, one person, shop, one person employee. If you have employees it could get costly, so you could still use it, but it could get costly. We are not going to get into details of why.

But we are going to talk about the strategy of a SEP IRA versus the solo 401k.

Both are retirement accounts, individual retirement accounts that you can use for yourself to save money on taxes.

They are tax deferred.

That means any money that you put away today into a SEP IRA or a solo 401k, you get a tax deduction at your retirement age.

The money that you withdraw from those, from those accounts, including its earnings.

Whether it's earned for your interest, dividends, whatever that is, will be taxable to you. Okay.

So in this video, we're going to talk about the advantages of both. Meaning to say from the tax standpoint, from the tax deduction standpoint, which one will give you the maximum.

Hey Everyone, Boris here. Make sure you check out these links.

P.S. When you sign up for Gusto, you get a $100 visa gift card

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*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only.

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[borismusheyevcpa]

Hey Everyone, Boris here. Make sure you check out these links.

[blueprintleadership]

Boris, can you also do a Employer Contribution (in addition to Employee Deferral and Profit Sharing (25%)? I think you can take an employer contribution that allows maximum of $67, 500, right?

[pineconepirate]

Boris, am I correct in thinking that contributions to a SEP IRA are not subject to FICA taxes, whereas contributions to a SOLO 401k are?

[annguyen]

Hello Sir,

I purchased one of your Solo 401K strategy a few months ago and opened a Solo 401K using TD Ameritrade. I’m under 50 and my understanding, I can contribute up to $19, 500 for 2021. But in this video you mentioned that I can also open a SEP IRA in conjunction with the Solo 401K. Is that correct?

Lets assume that I set my income as $100K annually, W-2 and the only employee per your example… please advise!

Thanks,

An,