self employed can I maximize both SEP and solo 401k from a single job?

I have seen questions regarding maximizing SEP vs. solo 401k, but not both.

I am self-employed, which is essentially all of our income. We are in a position that we have cash to shelter the income, but do not want to fall afoul of the IRS.

With an income of approx. $100,000 this year, online calculators suggest we can either put almost $19,000 into a SEP, or about $44, 000 into a solo 401k (includes employer contribution plus over-50 catch up.)

The question is, can we contribute the maximum to both of these for a total of about $63,000?

Or contribute to both up to some maximum value?

Thank you!

223

Expert Alumni

Mar 2, 2020 2:50:29 PM

For the SEP and the Solo 401(k), the limits for the employer portion are per person, not per retirement plan. So, if you max out your Solo 401(k) you can't contribute to a SEP. If you max out your SEP, you can still make the employee contribution of up to $19,000 and the $6,000 catch up provision if applicable.

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self employed can I maximize both SEP and solo 401k from a single job?