re: Solo 401k vs SEP IRA for new LLC - S election

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We have a SEP. THe limit on earning for 2020 was $285,000. It’s $290,000 for 2021. Do you have employees? If so, all must be treated equally. So if you fund yourself 10% you must fund the employee 10% as well. You can have restrictions such as for employees to have to wait 1,2 or 3 years and that they must be at least 21 years old. We like ours. Have had it for 30 years. The $58,000 funding is unlikely unless you have so much income you can afford 25%. We do 8-10%. We have many who max out. The max out at 8% in 2020 was $22,800.

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