Let me address just this point. Unless you have employees in your business, you can setup an Individual 401(k) for your business. Do it with Fidelity or Schwab (Vanguard is exiting self-employed individual 401(k), sold it all to Ascensus), and you will have access to low cost funds.I own my own business and have started a SEP account a couple of years ago (the only other thing this terrible financial advisor helped me set up – although now I’m so pissed that it will continue to pay her out for forever!)
My understanding is that you cannot make contributions to a SEP-IRA and an Individual 401(k) for the same tax year. So if you have made SEP-IRA contributions for 2024 already, just wait until January 2025 to open one (just 4 more months to go). If you have NOT done this yet (usually business owners make the contributions after the year's financials are completed), open the Individual 401(k) tomorrow.
You can later rollover the entire SEP-IRA assets into the Individual 401(k). No need to continue to pay your financial salesman "forever".
Statistics: Posted by lakpr — Mon Sep 02, 2024 8:39 pm — Replies 2 — Views 213