I own an LLC with one partner. We actually have some meager earnings this year, so we’re planning to set up some retirement savings.
Now, I’ve read up on both the SEP and the Solo 401k. I generally like the Solo 401k, but my major issue with it is the limitations as to which funds you can choose. The 401k has to be managed by a big investment firm, so you’re generally limited to fewer than a dozen mutual funds as options. An SEP, meanwhile, lets you invest in most anything. So, as one who was burned by miserable 401k fund choices during my corporate days, I wondered if I could set up both the 401 k and the SEP; that way, I could use the 401k for deferral investment, and the SEP for profit-sharing.
Is this kosher?