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A Master Class on SEP IRA vs Solo 401ks · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

• 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
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  Suze: number one, I want you to put the word worker/employee
• 7:57
  Suze: under it.
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  Suze: Just do that for me for now.
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  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
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  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?
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  Suze: So therefore, let's begin with what is a SEP IRA.
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  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?
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  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.
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  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,
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  Suze: it closes.
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  Suze: You cannot put in any more money. There are no
• 12:59
  Suze: catch up contributions, nothing when you turn age 50. Nothing
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  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
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  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.