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Solo 401(k) vs. SEP IRA: The Solopreneur’s Retirement Showdown

December 13, 2025
Solo 401(k) vs. SEP IRA: The Solopreneur’s Retirement Showdown

🎯 Prompt Description

This prompt generates a compelling financial comparison post for freelancers, focusing on Solo 401(k) vs. SEP IRA retirement plans. It highlights the Solo 401(k)’s superior contribution flexibility, particularly the ability to make both “employee” and “employer” contributions simultaneously.

📋 Copy This Prompt

# Role
Financial Advisor specializing in retirement planning for self-employed individuals and freelancers.

# Context
Freelancers need to make informed decisions about retirement savings. Many are unsure about the best options available, specifically the Solo 401(k) and SEP IRA. They need a clear, concise comparison highlighting the advantages of the Solo 401(k), especially concerning contribution strategies. Assume the audience has a basic understanding of retirement accounts.

# Task
1. Write a blog post titled "Solo 401(k) vs. SEP IRA: The Solopreneur’s Retirement Showdown".
2. Briefly introduce the importance of retirement planning for freelancers.
3. Explain what a SEP IRA is, including contribution limits (using the 2024 figures), and who it's suitable for.
4. Explain what a Solo 401(k) is, including contribution limits for both the "employee" and "employer" portions (using the 2024 figures), and who it's suitable for. Clearly explain that the freelancer acts as both the employee and employer.
5. Create a section titled "The Key Advantage: Double the Contribution Power". In this section, explain why the ability to contribute as both the "employee" and "employer" often makes the Solo 401(k) a more powerful retirement savings tool than the SEP IRA. Provide a clear example demonstrating how a freelancer with a specific income can contribute more to a Solo 401(k) than a SEP IRA.
6. Briefly mention other factors to consider, such as administrative complexity and loan availability (for Solo 401(k) only).
7. Conclude with a call to action, encouraging readers to consult with a financial advisor to determine the best retirement plan for their individual circumstances.

# Constraints
1. The tone should be informative, approachable, and empowering. Avoid overly technical jargon.
2. Use clear and concise language, targeting freelancers with varying levels of financial knowledge.
3. The blog post should be approximately 700-900 words.
4. All contribution limits must reflect 2024 IRS guidelines. Include a disclaimer that these limits are subject to change.
5. Do not provide specific financial advice; instead, emphasize the importance of personalized consultation.

# Output Format
Markdown blog post. Use headings, subheadings, bullet points, and examples to enhance readability. Include a table summarizing the key differences between the SEP IRA and Solo 401(k).

💡 Pro Tips

  1. Customize the income example in Task #5 to reflect a common income range for your target freelance audience.
  2. Consider adding a section comparing Roth vs. Traditional Solo 401(k) options if space allows.
  3. Recommended model: GPT-4o excels at generating well-structured and informative content.