The SEP is funded with dollars from the Corp. (Employer) the Single K, (Solo) is funded with Employer + Employee dollars. The limits for 2005 are as follows and assume an unincoporated business (Schedule C filer) SEP: LEsser of 20% of reported Gross income or $42k whichever is lowerSingle K, 20% of reported gross income plus $14,000 or $42k whichever is less. The Single K will also allow you to contribute an additional $4k as a catch up contribution if you turned 50 in 2005 or are already over 50, for a possible total of $46k.These limits are per person.Single Ks will allow you take loans, you can not take loans from a SEP,You can roll a SEP or a Single K to an IRA.Beginning in 2006, the Single K will give you the option to contribute the salary portion (15k in 2006) as a ROTH contribution. You may also contribute the catch up portion as a ROTH as well if you are over 50.Another site that goes over the single k is www.individualk.comBill The profit sharing part, aka the employer part of a self employed 401K for an unincoropated business in not 20% of gross income. For an unincorporated business the calculation is:(Gross income - expenses = Business net profits - self employment tax deduction) x .2 = maximum profit sharing contributionSee the worksheet for a non-incorporated business on Fidelity's website near the bottom of the page:http://personal.fidelity.com/accounts/services/content/keoghbrok.shtmlAlso, not all self emplyed brokers allow loans. Some brokers also require a set up fee and a maintenance fee. Some don't. Be sure to read the fine print of the documents. Some fees are actually hidden.Sue
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