# A Master Class on SEP IRA vs Solo 401ks

An episode of [Suze Orman's Women & Money (And Everyone Smart Enough To Listen)](https://invisiblenetwork.ai/podcast/1439621652), 12 Jul 2026, 31 min.

Audio: https://traffic.omny.fm/d/clips/2df1102a-5761-4c99-b489-aabd0161f8fe/44e0936e-923c-43c7-9e2a-aade00edf4d3/d68b9458-3dcb-4b47-9b85-b484015a0e43/audio.mp3?utm_source=Podcast&in_playlist=4e05fb00-5a5b-4ed9-b353-aade00edf4dd

On this new Suze School, Suze teaches a lesson about the differences between a SEP IRA and a Solo Roth 401K. For those of you who are self-employed, know someone who is or think that you may become self-employed down the road, this is for you. Learn more about the Ultimate Scam Protection here: SuzeOrman.com Watch Suze’s YouTube Channel Jumpstart financial wellness for your employees: https://bit.ly/SecureSave Protect your financial future with the Must Have Docs: https://bit.ly/3Vq1V3G Help with the Must Have Docs: • Email:support@musthavedocuments.zendesk.com • Phone: 888-510-0510 Get your savings going with Alliant Credit Union: https://bit.ly/3rg0Yio Get Suze’s special offers for podcast listeners at suzeorman.com/offer Join Suze’s Women & Money Community for FREE and ASK SUZE your questions which may just end up on the podcast. Download the app by following one of these links: CLICK HERE FOR APPLE: https://apple.co/2KcAHbH CLICK HERE FOR GOOGLE PLAY: https://bit.ly/3curfMI See omnystudio.com/listener for privacy information.

## Transcript

[0:08] Suze: July 12, 2026. Welcome everybody to the Women and Money podcast,
[0:13] Suze: as well as everybody smart enough to listen. Today is
[0:16] Suze: Suze School, and you are going to get out your
[0:19] Suze: Suze notebooks. Do you hear me? And the reason is
[0:22] Suze: very simple. You are going to want to write down
[0:26] Suze: everything I am going to tell you today, period. Just
[0:31] Suze: know that. But before I begin that, what I want
[0:35] Suze: to say is this.
[0:38] Suze: The markets are crazy. They're up, they're down. None of
[0:42] Suze: you are going to own a stock that goes straight
[0:46] Suze: up in this type of an environment. None of you
[0:49] Suze: are going to own a stock that goes straight down
[0:52] Suze: and doesn't return
[0:54] Suze: to go back up again, if you have listened to
[0:57] Suze: the kinds of stocks and ETFs that I've been talking about. So,
[1:02] Suze: don't look at your portfolio every single day and go,
[1:06] Suze: oh my God, this is down. It's down more. It's
[1:09] Suze: down even more.
[1:10] Suze: Listen to me and listen to me closely here.
[1:14] Suze: You are not to be investing in the stock market,
[1:17] Suze: unless you have at least five or 10 years or
[1:20] Suze: longer till you need this money, minimum of five, all right?
[1:25] Suze: And therefore, what good does it do you for these
[1:29] Suze: markets to go up and up and up on paper
[1:33] Suze: because you haven't cashed out yet when you're not going
[1:36] Suze: to cash out and your dollar cost averaging, which means
[1:41] Suze: your dollars are buying less shares because of what you're
[1:44] Suze: buying is more expensive. So when things go down, things
[1:50] Suze: that you want to own.
[1:53] Suze: That is the time that you really want to dollar
[1:56] Suze: cost average once a month, every three months, whatever it
[2:00] Suze: may be. So this is not the time to freeze.
[2:04] Suze: This is not the time to sell. This is not
[2:06] Suze: the time for you to think that you're going to
[2:08] Suze: outsmart these markets. You will never outsmart these markets.
[2:12] Suze: These markets will always teach you what you need to know,
[2:16] Suze: which is what consistency. The sooner you do something, the better.
[2:20] Suze: The longer you hold, the better, especially if it's a
[2:24] Suze: good quality ETF and or stock, bond, whatever it may be.
[2:30] Suze: So just you be consistent in a time when this
[2:34] Suze: world could not be more inconsistent if it tried.
[2:39] Suze: So as long as we're still at war, we're out
[2:43] Suze: of war, we're back in war.
[2:46] Suze: I'm telling you, nothing will absolutely go straight up or
[2:52] Suze: straight down. So, just know that, OK? All right, are
[2:57] Suze: you ready for Suze School to begin?
[3:02] Suze: Now, a week ago, and I think it was just
[3:05] Suze: a week ago, I told you that I would do
[3:08] Suze: a Suze School on the difference between a SEP IRA
[3:14] Suze: and a solo Roth 401k. So for those of you
[3:19] Suze: who are self-employed...
[3:22] Suze: This is for you. You're your own boss, whatever it
[3:26] Suze: may be. Maybe you're just selling candles on Etsy. Maybe
[3:31] Suze: you're driving a rideshare on Saturdays, whatever it may be.
[3:35] Suze: As long as you don't have any employees and you
[3:39] Suze: have a business, you are essentially self-employed, so you need
[3:44] Suze: to listen up.
[3:46] Suze: And you need to listen up to the difference between
[3:49] Suze: the solo Roth 401k and the SEP IRA. So, it
[3:54] Suze: is important that you understand the difference, because I'm here
[3:59] Suze: to tell you, you can save either two times, three times,
[4:04] Suze: or more, seriously, as much in a solo 401k versus
[4:09] Suze: a SEP IRA on the exact same income.
[4:13] Suze: So for those of you who have a SEP IRA,
[4:18] Suze: you have no employees, you best listen up because in
[4:22] Suze: most cases you are making a mistake and a solo
[4:27] Suze: 401k would be absolutely the way to go. However, there's
[4:34] Suze: one other thing you need to listen up and understand.
[4:39] Suze: I can hear it now.
[4:40] Suze: I can hear it. A lot of you have already
[4:43] Suze: heard me say no employees, and you're thinking to yourself,
[4:49] Suze: but Susie, I have a helper who comes in a
[4:51] Suze: few hours a week, or my daughter works summers for me.
[4:56] Suze: And you're trying to get around the rules possibly, but
[5:00] Suze: you need to understand the definition of an employee, and
[5:05] Suze: the definition for an employee in these two cases is
[5:10] Suze: not a full-time employee. What matters is this
[5:16] Suze: How much they work and how long they have been
[5:20] Suze: with you and the two plans they measure it completely
[5:25] Suze: differently so take notes here.
[5:28] Suze: The solo 401k counts hours. So once someone works 500
[5:34] Suze: hours a year, listen everybody, that's just 10 hours a
[5:38] Suze: week for two years running. They're in your plan whether
[5:43] Suze: you know it or not, and the solo part, the
[5:46] Suze: solo is over. It's over. You don't qualify anymore for
[5:52] Suze: a solo 401k.
[5:55] Suze: Remember, a solo 401k means one person, of course, unless
[6:00] Suze: the other person is your spouse. So be careful here.
[6:06] Suze: The SEP IRA does not count hours at all. It
[6:11] Suze: counts years. Somebody works for you in three of the
[6:15] Suze: last five years, even just a few hours here and there.
[6:20] Suze: It is probable that you will owe that person the
[6:23] Suze: exact same percentage you give yourself. So if you're paying
[6:28] Suze: yourself 10% of your compensation, you're going to have to
[6:32] Suze: give it to them as well.
[6:34] Suze: So, again, an occasional worker here and there, really, you're fine,
[6:38] Suze: but be careful, because you're a steady part-timer of several years.
[6:45] Suze: Watch out, cause you're going to owe them money. And
[6:49] Suze: I just have to give you one warning. All right, everybody,
[6:51] Suze: I know, I know, cause all of you always try
[6:54] Suze: to get clever. Do not go calling a real employee,
[6:59] Suze: a contractor, just to protect your plan.
[7:03] Suze: That's a trick, everybody. Remember, I always tell you, stand
[7:06] Suze: in your truth. That trick, if caught, creates IRS problems
[7:11] Suze: that make all of this really look like a picnic
[7:14] Suze: for you. So, I just want you to understand when
[7:18] Suze: I'm saying employees throughout this podcast, exactly what I am
[7:24] Suze: talking about. OK, are you ready? Let's begin. Here's what
[7:30] Suze: I want you to do:
[7:32] Suze: On a piece of paper in front of you and
[7:34] Suze: you all need to get that out now really if
[7:37] Suze: you don't have it.
[7:39] Suze: I want you to draw a picture of two hats,
[7:43] Suze: two hats. They can just be a square, OK? Just
[7:46] Suze: think of them as hats, side by side. Under hat
[7:50] Suze: number one, I want you to put the word worker/employee
[7:57] Suze: under it.
[7:59] Suze: Just do that for me for now.
[8:01] Suze: Under hat number two, I want you to put the
[8:04] Suze: words boss/employer, just that simple.
[8:10] Suze: Now, assuming again you work for yourself and you don't
[8:13] Suze: have any employees, I want you to listen up.
[8:17] Suze: When you work for yourself, you wear two hats. I
[8:21] Suze: want you to think about it. You are wearing the
[8:24] Suze: worker hat, when you are doing the actual work, you're
[8:28] Suze: designing the logos, you're coaching the clients, driving the car,
[8:31] Suze: whatever it may be.
[8:33] Suze: However, when you sign the checks, make all the decisions,
[8:37] Suze: pay the taxes, you are wearing the boss hat. So
[8:42] Suze: in reality, you always wear two hats.
[8:47] Suze: An employer hat and an employee hat. You can think
[8:52] Suze: of yourself as the worker or the boss, either one,
[8:56] Suze: but you wear both those hats. Now why do I
[9:02] Suze: care and why should you care about these hats? Very simple,
[9:08] Suze: because that is the entire difference between the solo 401k
[9:13] Suze: and the SEP IRA.
[9:17] Suze: So, the solo 401k lets both hats contribute.
[9:24] Suze: The worker hat and the boss hat. The SEP IRA
[9:29] Suze: only lets one hat contribute, and that is just the
[9:35] Suze: employer or the boss hat.
[9:38] Suze: So, two hats are obviously better than one, when it
[9:43] Suze: comes to contributions, cause you have both sources contributing.
[9:49] Suze: Do you get that? Think about this. Just put a
[9:52] Suze: pin in that for one second. Think about the 401k, 403B,
[9:57] Suze: whatever it may be, as an employee. When you have
[10:01] Suze: an employer sponsored plan.
[10:04] Suze: You contribute and your employer contributes. When you have an
[10:11] Suze: individual IRA only you contribute.
[10:16] Suze: And if you think about that, you get to contribute
[10:20] Suze: more
[10:21] Suze: in a 401k, 403B, TSP, whatever it may be, than
[10:26] Suze: you do in an individual IRA. The same is true
[10:32] Suze: for a SEP IRA only you can contribute versus a
[10:38] Suze: solo 401k where you can contribute as the employee and
[10:44] Suze: the employer. Does that make sense to you?
[10:49] Suze: So therefore, let's begin with what is a SEP IRA.
[10:56] Suze: A SEP IRA, better known just as a SEP, stands
[11:00] Suze: for Simplified Employee Pension. I want you to notice the
[11:05] Suze: words Simplified Employee Pension. Why do they call it that?
[11:11] Suze: Because first of all, everybody, it's simple. It takes maybe
[11:15] Suze: five minutes to set up. Next.
[11:19] Suze: Look at the word employee. It is set up for
[11:23] Suze: the benefit of an employee, and how does an employee benefit?
[11:28] Suze: They benefit when the boss puts in money for the employee, period.
[11:35] Suze: The employee cannot put in money. Only the boss can
[11:39] Suze: put in money. So it is your boss hat when
[11:44] Suze: you are setting up a SEP
[11:46] Suze: that contributes. So the question is how much can the
[11:51] Suze: boss put in. And remember, if you're self-employed and you
[11:55] Suze: set up a SEP, you are the boss putting in
[12:00] Suze: money for your own benefit, but only the boss can
[12:04] Suze: put it in.
[12:05] Suze: So how much can the boss put in? Write this down,
[12:10] Suze: 20 to 25% of your compensation up to a max
[12:16] Suze: of $72,000. Now just so you know, to be able
[12:22] Suze: to hit that mark of $72,000,
[12:26] Suze: you have to have compensation of anywhere between $288,000 and
[12:31] Suze: $360,000 a year depending on if you're an S corp
[12:36] Suze: or a sole proprietor. Just know that that's not a
[12:39] Suze: big deal, but that's the whole story for the simplified
[12:44] Suze: employee pension plan, the SEP.
[12:47] Suze: So after $72,000 is reached in that plan, that's it,
[12:54] Suze: it closes.
[12:55] Suze: You cannot put in any more money. There are no
[12:59] Suze: catch up contributions, nothing when you turn age 50. Nothing
[13:04] Suze: is going to matter except that most people open up
[13:09] Suze: a SEP IRA, is its technical name,
[13:13] Suze: at a brokerage firm, where you can buy and sell
[13:16] Suze: anything you want, you own control over what's in there,
[13:20] Suze: all of that, that's how you normally do it. OK,
[13:23] Suze: I'll get back to that in a second.
[13:26] Suze: Now, just remember, it's a maximum of 20 to 25%
[13:31] Suze: of your compensation that you can put in, and to
[13:35] Suze: get close to that $72,000 you are making at least
[13:39] Suze: approximately $300,000 a year. Just know that.
[13:46] Suze: Let's leave SEPs for one second and switch to the
[13:50] Suze: solo 401k. Now, you might wanna draw two boxes again.
[13:56] Suze: And under this, you do the exact same thing as
[13:59] Suze: I asked you to do for the SEP. Again with
[14:03] Suze: the SEP, notice that the only hat that's allowed to
[14:07] Suze: contribute is the employer hat. Let's do the solo 401k.
[14:14] Suze: You have two boxes.
[14:16] Suze: An employer box or the boss, an employee box or
[14:21] Suze: the worker, all right.
[14:23] Suze: And again, for people who are self-employed with no employees,
[14:29] Suze: you can have your own solo 401k. And by the way,
[14:35] Suze: if your spouse works for the business, they can have
[14:40] Suze: their own solo 401k as well, just so you know.
[14:44] Suze: So let's look at the contribution limits under the solo 401k.
[14:52] Suze: Now under the boss hat it works identical to the
[14:57] Suze: boss hat of the SEP IRA. Those two hats, whether
[15:03] Suze: it is a SEP IRA or a solo 401k, are identical. Again,
[15:10] Suze: 20 to 25% of compensation, up to the same 72,000
[15:16] Suze: overall max, identical, no difference there.
[15:22] Suze: However, listen closely to me now. Unlike the SEP IRA,
[15:28] Suze: the solo 401k does allow the employee or the worker
[15:34] Suze: to contribute. So under the worker hat, now listen closely,
[15:39] Suze: just like in your employer 401k, 403B TSP where you
[15:45] Suze: may work or you did work, the solo 401k works
[15:49] Suze: the exact same way.
[15:52] Suze: You can put up to write this down under that hat,
[15:56] Suze: up to $24,500 for 2026 if you're under 50.
[16:04] Suze: If you're 50 or older, the catchup contribution is $8000
[16:11] Suze: so you could put in this year $32,500 in that hat.
[16:18] Suze: If you are 60, 61, 62, your catch up jumps
[16:22] Suze: to $11,250 for a total of you having the ability
[16:29] Suze: to put in $35,750. Obviously after the age of 63,
[16:36] Suze: it drops back to $32,500. So let's just compare the two.
[16:45] Suze: Just let's compare them.
[16:46] Suze: And a SEP IRA, let's just say you're an S
[16:50] Suze: corp paying yourself $75,000 in W-2 wages, so 25%, which
[16:59] Suze: is what you are allowed to put in to accept
[17:02] Suze: the most of that $75,000 is $18,750. That would be
[17:10] Suze: your max contribution.
[17:13] Suze: Or let's say you're a sole proprietor maybe with $75,000
[17:19] Suze: of net Schedule C profit, and for those of you
[17:22] Suze: who are self-employed, you know what I'm talking about, but
[17:26] Suze: just listen to me. You could put in about $13,900
[17:32] Suze: max in your SEP IRA. Now let's just look at
[17:37] Suze: your solo 401k.
[17:40] Suze: The same 75,000 gets the same 18,750 or 13,900 under
[17:49] Suze: the boss hat contribution that doesn't change. However, it doesn't
[17:54] Suze: stop there for now.
[17:57] Suze: You put your worker hat on so you can also
[18:01] Suze: contribute an additional $24,500 if you're under 50 $32,500 if
[18:08] Suze: you're 50 or older, $35,750 dollars if you are 60
[18:12] Suze: to 63.
[18:15] Suze: Are you kidding me? And you would add either $13,900
[18:21] Suze: or $18,750 to any of those numbers so you can
[18:26] Suze: now see how many thousands more you could put away
[18:31] Suze: in a solo 401k.
[18:35] Suze: Did you hear what I just said to you? Why
[18:39] Suze: in the world would you be doing a SEP IRA
[18:43] Suze: in most cases? I'll tell you why in one second.
[18:46] Suze: But for most of you, listen again that are self-employed,
[18:51] Suze: whether you are a sole proprietor or a subchapters, whatever
[18:57] Suze: it may be, you are far better off doing.
[19:01] Suze: A solo 401k versus a SEP IRA to the tune
[19:08] Suze: of tens of thousands of dollars more per year. Quizzy time, everybody.
[19:14] Suze: Because I wanna make sure that you get this. This
[19:17] Suze: is so important. I can't even tell you. And for
[19:20] Suze: those of you who are like, Oh, Suze, I can
[19:22] Suze: barely fund my IRAs, whether it's a Roth or traditional
[19:25] Suze: right now. I can't do anything. You need to listen
[19:29] Suze: to this because one day you don't know what the
[19:31] Suze: future holds for you, do you? You don't know. So
[19:36] Suze: understand the rules now, so if ever you become self-employed,
[19:41] Suze: you'll know which retirement account to choose. Just that simple.
[19:47] Suze: As long as you have no employees, it's just you.
[19:52] Suze: This makes sense. All right, now, let's just say Diane
[19:57] Suze: is a freelance graphic designer. She's 42.
[20:01] Suze: And she wants to open a SEP IRA.
[20:04] Suze: And her business nets her enough that her boss hat,
[20:09] Suze: 'cause she is the boss, and that's the only hat
[20:12] Suze: that can contribute to a SEP IRA.
[20:16] Suze: It is enough to allow her to contribute $12,000 this year.
[20:21] Suze: So Diane opens a SEP IRA. Here's your question. This
[20:25] Suze: is an easy one for you. How much can Diane
[20:28] Suze: put away for retirement in her SEP IRA this year?
[20:34] Suze: Write down your answer.
[20:36] Suze: And you should have written down $12,000.
[20:42] Suze: Now, same Diane, same income, same year, same age, but
[20:50] Suze: this time, Diane opens a solo 401k instead. How much
[20:57] Suze: can Diane now contribute totally to her solo 401k? Write
[21:05] Suze: it down.
[21:07] Suze: Now I'm gonna give you a few minutes here.
[21:10] Suze: Because remember in a solo 401k she has two hats
[21:15] Suze: the boss hat, which she can put in $12,000 but
[21:20] Suze: the worker hat or the employee hat where she can
[21:24] Suze: put in up to x. What is that? Add them together.
[21:29] Suze: Did you get it right? The answer is $36,500. Same woman.
[21:39] Suze: Same business, same exact income, but three times the retirement savings.
[21:47] Suze: Once again, why? Because within her solo 401k she can
[21:52] Suze: put in for the employee and the employer.
[21:57] Suze: So again, her boss hat puts in the same $12,000
[22:02] Suze: and the worker hat allows her to drop in another
[22:05] Suze: $24,500 on top of that. That's how we got to
[22:11] Suze: the $36,500 because remember Diane is under 50. So do
[22:19] Suze: you get it everyone?
[22:21] Suze: Now, I gave you a hint of who does it
[22:25] Suze: make sense for a SEP IRA versus a solo 401k.
[22:31] Suze: And here's the thing, if you're under 50, earning roughly
[22:36] Suze: $29,000 to 360,000 depending if you're an S Corp or
[22:41] Suze: sole proprietorship.
[22:43] Suze: It might make sense for you because it's simple, same
[22:47] Suze: amount of money, whatever it may be. However, everyone else,
[22:52] Suze: every age, every income, the solo wins on the math.
[22:57] Suze: But the solo also wins in another way. So listen
[23:01] Suze: closely here, OK.
[23:04] Suze: You know how I feel about Roth's. You know I
[23:07] Suze: want your retirement money to grow tax-free, have tax-free withdrawals,
[23:12] Suze: and that is the greatest gift you will always give
[23:15] Suze: your future self. You know that.
[23:18] Suze: The solo 401k, guess what? It can also be set
[23:22] Suze: up as a Roth solo 401k. So, if you are smart,
[23:29] Suze: you open up a Roth solo 401k, your entire worker
[23:35] Suze: hat contribution, every penny of that 24,500 plus, depending if
[23:41] Suze: you're 50 or older, so the catchups goes into the Roth.
[23:47] Suze: As much as you possibly can put in up to
[23:50] Suze: those maxes. However, most firms don't let you put in
[23:56] Suze: the boss hat in a Roth, all right, they just don't. However,
[24:02] Suze: I think Schwab currently allows you to do that, so
[24:06] Suze: you need to check it out before you do so. However,
[24:11] Suze: even where you can, and now this becomes complicated, so
[24:14] Suze: just listen to me for a second, even where you
[24:18] Suze: can put in the boss hat in a Roth section,
[24:23] Suze: and for reasons like I just said that are too
[24:25] Suze: complicated for this particular Suze School, you may be better
[24:29] Suze: off just maxing out the boss hat in a pre-tax anyway.
[24:36] Suze: And to just make it simple, this is because of
[24:39] Suze: something known as the QBI deduction, and it's a tax
[24:43] Suze: break many business owners get. So here's what I want
[24:47] Suze: you to do, especially if you're making larger amounts of money.
[24:52] Suze: Talk to your CPA and see if it makes sense
[24:55] Suze: to designate the employer your boss had money to the
[24:59] Suze: pre-tax side or to the Roth.
[25:03] Suze: And in case you have to designate it to the
[25:06] Suze: pre-tax side.
[25:08] Suze: Remember, pre-tax isn't a life sentence. It's a conversion waiting
[25:14] Suze: to happen, and you will convert it in lower income
[25:17] Suze: years like a slow business year, a sabbatical, the gap years,
[25:21] Suze: whatever it may be. Got that.
[25:25] Suze: So, those are the two differences. I just want to
[25:29] Suze: take one more minute of your time, maybe 5, we'll see,
[25:33] Suze: and talk about a SEP IRA cause many of you
[25:37] Suze: may choose to still do a SEP IRA.
[25:42] Suze: Now, even though the Secure Act 2.0 says legally you
[25:48] Suze: can set up a SEP Roth IRA, I don't know
[25:52] Suze: of any brokerage firms really that allow you to do so,
[25:58] Suze: and I think a lot of that has to do
[26:00] Suze: with the QBI and everything that I just mentioned before. However,
[26:06] Suze: you can set up a SEP IRA.
[26:10] Suze: Put money into it.
[26:14] Suze: Obviously, it's pre-tax, so you get to take a tax deduction.
[26:18] Suze: You immediately, however, if you want, can then convert it
[26:24] Suze: to a Roth IRA, no income limitations, nothing.
[26:29] Suze: And even though you're going to owe tax on that money,
[26:33] Suze: you got a deduction when you put it into the SEP. So, basically,
[26:38] Suze: it will offset it when you then convert it. That's
[26:42] Suze: a way to get a lot of money, more than
[26:45] Suze: a Roth IRA to begin with or whatever, into a
[26:49] Suze: SEP IRA that can then convert to a Roth IRA.
[26:55] Suze: Got that? So, this really is just one last thing
[26:59] Suze: that I want to say.
[27:01] Suze: Half of you listening have a day job. You have
[27:04] Suze: an employer sponsored plan, such as a 401k, 403b, whatever
[27:09] Suze: it may be, OK? And you have a side hustle,
[27:14] Suze: a side business that you've started on your own, and
[27:18] Suze: that business may be taking off. Maybe you're an influencer
[27:22] Suze: who knows what you are.
[27:24] Suze: And you are making a lot of money in that
[27:27] Suze: side business, besides what you are making at work.
[27:32] Suze: Your worker hat limit, that $24,500 or more, depending on
[27:38] Suze: your age. Remember, if you're 50, there's, it's more, if
[27:41] Suze: you're 60 to 63, it's more, is per person, not
[27:46] Suze: per plan. So maybe you're doing great again at work
[27:51] Suze: and you want to open up a solo 401k. If
[27:56] Suze: you max out the 401k at your day job.
[28:00] Suze: Then your worker hat is done for the year, period.
[28:05] Suze: You cannot put one more dime into the worker hat
[28:10] Suze: into your solo 401k.
[28:14] Suze: However, here's what you need to get:
[28:18] Suze: Your boss hat limits are separate for each business, so
[28:23] Suze: even after you've maxed out at work, you have that
[28:28] Suze: side business, whatever it may be, you can still open
[28:31] Suze: a solo 401k.
[28:35] Suze: And make the boss hat contribution to your solo 401k
[28:40] Suze: or solo Roth 401k if your CPA says it's OK.
[28:46] Suze: So that is a whole extra hat.
[28:50] Suze: So to speak, to help you with tax advantage savings,
[28:55] Suze: and most people don't even know the door exists, so
[28:59] Suze: you need to understand that now just one exception, I
[29:03] Suze: just have to say, government workers, if you're listening, if
[29:07] Suze: you have a 457B, it has its own separate limit,
[29:12] Suze: so it doesn't count against your worker hat. So even
[29:17] Suze: if you max out at work with that,
[29:20] Suze: you start your own solo 401k, you can max out,
[29:25] Suze: if you want, your worker hat in that as well.
[29:29] Suze: Did I just confuse the heck out of all of you?
[29:32] Suze: It's actually very, very simple, so you have to think
[29:39] Suze: about this. Everybody, here's the bottom line for most of
[29:44] Suze: you working for yourself, as long as you don't have
[29:47] Suze: any employees, please choose the Solo 401k Roth for the
[29:54] Suze: worker hat.
[29:55] Suze: And pre-tax or after tax for the boss hat, depending
[30:00] Suze: on what your CPA says, just make sure you open
[30:03] Suze: it by December 31st. That's the deadline for the year
[30:09] Suze: to open one up.
[30:11] Suze: Now, whichever plan you choose, just remember the plan is
[30:15] Suze: just the container. What makes you secure is what you
[30:19] Suze: put in it, month in and month out and leave
[30:23] Suze: it alone to grow. Now hopefully you seriously understand the
[30:29] Suze: difference between a SEP IRA and a solo 401k, and
[30:36] Suze: I think hands down.
[30:38] Suze: The absolute way to go is with in most cases
[30:42] Suze: a solo 401k. Now you know, so there's only one
[30:47] Suze: thing that I want you to remember when it comes
[30:49] Suze: to your money, and it is this people first, then money,
[30:53] Suze: then things. Now you stay safe. By the way, don't
[30:57] Suze: you miss KT? I do.
[31:00] Suze: All right, bye bye.

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