SEP IRA and Solo 401(k)

Self employed?
Meet two powerful retirement plans

Take full advantage of your self-employed status with flexible retirement plans built just for you.

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Solo 401(k)? SEP IRA? Let’s break it down.
These are the two main retirement options that typically offer the most tax advantages. Here are the key differences:
  • Solo 401(k)

    $49/month base fee + 0.15%/year

    Just like a regular 401(k), but without the complexity of testing. You can contribute as both employer and employee, take out loans, and qualify for up to $500 in tax credits the first three years.1,2,3
  • SEP IRA

    $8/month base fee + 0.08%/year

    Higher contribution limits than a traditional IRA, but missing key advantages of a Solo 401(k), like employee contributions and loans. Can be a solid option for those just starting their self-employed journey.1,2

How Guideline’s Solo 401(k) and SEP IRA stack up

Solo 401(k)
SEP IRA
  • Contribution limits
    $70,0004
    $70,0004
  • Pre- and post-tax contribution options
    Yes
    No
  • Catch-up contributions for savers over 50
    Yes
    Up to $7,500 or $11,250/year4
    No
  • Contribute as employer
    Yes
    Yes
  • Contribute as employee
    Yes
    No
  • Expert-built portfolios
    Yes
    Yes
  • Easy admin and automated compliance
    Yes
    N/A
  • Scales to standard 401(k)
    Yes
    No
  • Loans available
    Yes
    No
  • Tax credits available
    Yes3
    Yes3
  • Mega backdoor Roth eligible
    Yes
    N/A
  • Automated compliance
  • 100% digital contributions
  • Easy plan admin
  • Hands-free IRS filings5

We made the Solo 401(k) way more accessible

Just because you work for yourself doesn’t mean you want to work forever. Guideline takes care of the hard parts of a Solo 401(k) with automated compliance, digital contributions, IRS form prep, and much more—all at no extra cost. Because we want you to retire, too.

Open a Solo 401(k)

Solo 401(k): The Guideline difference
  • Example visual of what happens when a payroll is connected with Guideline.

    Seamless admin

    Unlike other providers, we handle compliance, recordkeeping, investments, required IRS form prep, and more. You sit back and relax.
  • Image of two coins

    No junk fees

    We automated the middle man to maximize your savings. Our managed portfolios have up to 6x lower fees than the industry average.6
  • Image of message bubbles. One bubble has a heart.

    Award-winning support

    With a 93% customer satisfaction rating, you get the care you need.7,8 Live English or Spanish support by email and phone.
Joshua B.BERK Labs
Guideline’s value is visible in everything I don’t have to do. No endless email threads. No untangling issues. No 401(k) stress.Client of Guideline. Views may not be representative of other clients.
60k+
businesses9
1M+
savers10
$15B+
Invested for retirement11
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Innovation by Design Award 202412

Frequently asked questions

  • Open a Solo 401(k)

    Perfect for savers who want access to more features and tax credits. You could get set up with a Solo 401(k) in as little as 9 minutes.
    Get started
  • Questions about SEP IRAs?

    A great option for savers who only need basic features and don’t anticipate expanding their business. Visit our dedicated page that tells you everything you need to know.
    Learn more