SD IRA vs SD Solo 401K

[Krista Collins]

Bigger Pockets has opened up a brand new GIANT world for me, which is really exciting, but I feel like I'm trying to drink from a fire hose right now. I'm new to real estate investing and have had little to no financial education. I've been reading through some forum discussions about SD IRA's and SD solo 401K's and trying to make heads or tails. I left my previous employer last fall and have some money in a 401a (DCPP) that I would like to roll, if possible, into either a SD IRA or SD Solo 401K. I'm trying to figure out the differences between them and make the best choice. Advice? Recommendations? Articles to read?

[Carl Fischer]

@Krista Collins

If you open a business with w2 or 1099 income you can have both an Ira and 401k. You can choose one or the other as well -dependent on contribution amounts expected now and in the future. There are many comparisons between IRAs and 401ks that should be studied before making your decision. @Dmitriy Fomichenko  and others on BP as well as google have a lot of information on the subject. Discuss with your attorney and cpa when your setting up your business entity for recommendations.