…(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

For those looking to save for retirement, there’s good news regarding the the SEP-IRA and Solo 401(k) contribution limits: they have been increased from $61,000 to $66,000.

This adjustment comes as a result of cost-of-living increase, and it allows investors to set aside even more money for their retirements. It’s worth noting that this total contribution limit includes both employee contributions (up to $19,500 for those under 50, and up to $26,000 for those aged 50 and over) and employer contributions.

One of the key differences between a SEP-IRA and a Solo 401(k) is that the former is designed for small business owners or self-employed individuals, while the latter is available to sole proprietors or single-member LLCs with no employees. Additionally, with a SEP-IRA, the employer makes all contributions, while with a Solo 401(k), both the employee and employer can contribute.

Both options offer tax-deferred growth and are excellent tools for those looking to save for retirement while minimizing their tax burden. The increased contribution limit means that investors can put even more money away, potentially growing their nest egg even faster.

It’s important to note that while these accounts have different eligibility requirements and contribution limits, they operate in a similar fashion to traditional IRAs and 401(k)s. As such, those considering opening one of these accounts should consult with a financial advisor to determine which option is best for them.

In conclusion, the increased contribution limit for SEP-IRAs and Solo 401(k)s is great news for those looking to maximize their retirement savings. As with any investment decision, it’s important to carefully consider the options and consult with a financial advisor before making any decisions.