Feature | SEP IRA | Solo 401(k) | Roth IRA | Rollover IRA |
Eligibility | Self-employed, no employees or few employees | Self-employed, no full-time employees except spouse | Anyone with earned income, subject to income limits | Individuals rolling over funds from previous employer-sponsored retirement plans |
Contribution Limit (2024) | Lesser of 25% of net earnings or $69,000 | Employee: up to $23,000 (+$7,500 if age 50+); Employer: up to 25% of compensation; Combined max: $69,000 ($76,500 if age 50+) | $7,000 ($8,000 if age 50+) | No new contributions except rollover |
Tax Benefits | Contributions tax-deductible, taxes due at withdrawal | Contributions tax-deductible, taxes due at withdrawal; Roth option available | Contributions after-tax, qualified withdrawals tax-free | Depends on rollover source; typically pre-tax contributions |
Withdrawal Rules | Penalty-free after age 59½; mandatory at age 73 | Penalty-free after age 59½; mandatory at age 73 (except Roth) | Contributions withdrawn anytime penalty-free; earnings after age 59½ tax-free | Penalty-free after age 59½; mandatory at age 73 |
Administrative Complexity | Minimal | Moderate; Form 5500 filing if assets exceed $250,000 | Minimal | Minimal |
Best For | High-earning solopreneurs wanting simplicity | Solopreneurs seeking higher contributions and loan options | Those expecting higher taxes in retirement | Consolidating retirement savings from previous jobs |

Noyack Wealth Weekly
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