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I am self employed in a business venture. Could I theoretically contribute to a SEP IRA where the maximum contribution is $50,000 and to a Solo Roth 401k where the max contribution is $17,500?

I couldn't find information on that combination, but this appears to have higher contribution limits than any other retirement tax deferred idea.

I like the idea of tax free growth and distribution in Roth plans, yet I really like the higher contribution maximum in the SEP plan where I could make a huge account much faster than with other kinds of IRAs – it would take ten years with a normal IRA to do one years worth of contribution – if that much funds were made.

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In addition to the normal limits, A Solo 401(k) allows you to contribute up to 20% of net profits (sole proprietor) or 50% of salary (if a corporation), up to $49,000.

Note that the fees for 401(k) accounts are higher than with the IRA. See 401(k)s for small business.

  • I already contacted my broker about fees, there are no fees for me to have a solo roth 401k. – CQM Mar 16 '12 at 16:33
  • Am I crazy, or does this have nothing to do with the question of contributing to both simultaneously? Edit: there's an actual answer over here. – Mark E. Haase Feb 15 '16 at 3:35

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