Glossary

Solo 401(k)

A solo 401(k) is an individual 401(k) designed for a business owner with no employees. Businesses with a Defined Benefit plan may choose to set up a solo 401(k), to maximize contributions.

SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) IRA is a type of tax-deferred employer-provided for small businesses with 100 or fewer employees.

Simplified Employee Pension IRA (SEP IRA)

A Simplified Employee Pension IRA (SEP IRA) is a traditional IRA for self-employed people and small-business owners. Contributions are tax deductible. Businesses who wish to contribute more than a SEP IRA allows may decide to open Defined Benefit or Cash Balance plan.

Self-directed IRA (SDIRA)

A self-directed IRA (SDIRA) is a type of traditional or ROTH IRA that can hold a variety of alternative investments, including real estate, that regular IRAs can’t own.

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