re: 26, self employed, where do I start

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401k vs. SEP

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Both give tax breaks to the owner/employee(s). They both require employee contributions if there are any employees.

401(k) can be more efficient to the business owner if W2 employees are present, but there is sometimes an administrative expense. 401(k) limits are around $19,500 and then additional amounts are allowed through profit sharing and other company contributions.

SEP plans are all company contributions and the limits are upwards of $53k or so. Tough when employees are present. Because the contributions come from the company (not salary deferral), the % that the owner would get, so would the employees. So it can get more expensive.

I like the SEP if there is just a single owner/employee paying themselves a W2. Little to no administrative cost.

You can usually invest in most anything using both of them, but Solo 401(k)s are sometimes limited to a select group of mutual funds or ETFs.