small business
3 questions
- Finance
What is a SEP IRA?
A SEP IRA (Simplified Employee Pension) is a retirement account for self-employed people and small business owners that allows contributions up to $72,000 in 2026 — far more than a regular IRA. It works like a traditional IRA: contributions are tax-deductible and withdrawals in retirement are taxed as ordinary income.
- Finance
What is a SIMPLE IRA?
A SIMPLE IRA is a retirement savings plan for small businesses with 100 or fewer employees. Employees can contribute up to $16,500 in 2025, and employers are required to contribute — either matching up to 3% of compensation or putting in 2% for everyone regardless of whether they contribute.
- Finance
What is a solo 401(k)?
A solo 401(k) — also called an individual 401(k) or one-participant 401(k) — is a retirement plan for self-employed people with no full-time employees (other than a spouse). It allows much higher contributions than a SEP-IRA at the same income level, because you can contribute as both the employee and employer.