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Retirement & Benefits

Solo 401(k)

Also called: solo 401k, individual 401(k), one-participant 401(k)

A solo 401(k) covers a business owner with no employees other than a spouse, and it allows contributions in two capacities at once — as employee and as employer. That structure shelters far more at moderate income than a SEP IRA, since the employee portion isn't a percentage of profit. Most providers also offer a Roth option and the ability to borrow from the plan, neither of which a SEP allows.

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