Ask Terry Questions SEP-IRA or Solo 401(k) for Side Hustle?

SEP-IRA or Solo 401(k) for Side Hustle?

By Terry Savage on June 03, 2023 | Financial Planning / Retirement

Hello Terry,

I have a full-time job but also work as a freelance musician during my spare time, which generates $5000-$10000/year. I already contribute and max out my employer-sponsored 401(k), as well as a personal Roth IRA. Is it worth opening a SEP-IRA or a solo 401(k) to save more money, and if so, which one should I choose? Thanks so much and I have learned a lot from you.

Terry Says

I don’t know your entire financial picture, but maybe it’s time to start saving OUTSIDE your retirement plan (given your large contributions already). That might help you purchase a home, or use money for other reasons, on an after-tax basis.
You sound like a perfect candidate for a meeting with a Fee-Only, FIDUCIARY financial planner — someone who is NOT trying to sell you something and make commissions!
Suggest you read this link.

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