2012 SEP IRA contribution limit maximum is $50,000.
Easy to set up and minimal administrative responsibilities.
A Solo 401k may provide a larger contribution compared to a SEP IRA at the same income level.
For those age 50+ there isn't an additional catch-up provision like there is with the Solo 401k.
Loans are not permitted
The SEP IRA has broad appeal due to its high maximum contribution limits and its ease to set up and maintain. The 2012 SEP IRA contribution
limit maximum is $50,000. The annual contribution into a SEP IRA is based on a percentage of W-2 wages if you are incorporated or net income if
you are a sole proprietorship. The SEP IRA is a great choice for self employed business owners who would like to contribute up to 25% of their W-2
wages or 20% of net self employment income.
Sole proprietorship, partnership or a LLC taxed as a sole proprietorship.
Annual contributions up to 20% of your net adjusted self employment income (or net adjusted business profits) can be contributed into a SEP.