Feature

Retirement Planning That Maximizes Tax Savings

Compare SEP IRA, Solo 401k, Traditional IRA, and Roth options. See exactly which saves you more.

Overview

Self-employed individuals have powerful retirement account options that can save thousands in taxes—but choosing between them is confusing. AlphaTax's Retirement Optimizer compares SEP IRA, Solo 401k, Traditional IRA, and Roth accounts based on your specific income and goals. See contribution limits, tax savings, and projected growth for each option to make informed decisions.

How It Works

Enter Your Income

AlphaTax uses your self-employment income to calculate contribution limits for each account type.

Compare Account Types

See side-by-side comparison of SEP IRA, Solo 401k, Traditional IRA, and Roth options.

View Tax Impact

Each option shows current-year tax savings and projected retirement growth.

Get Recommendations

AlphaTax recommends the optimal strategy based on your income level and goals.

Key Benefits

Higher Contribution Limits

Solo 401k allows up to $69,000/year (2024) vs SEP IRA's 25% limit. Know which lets you save more.

Tax Savings Visualization

See exact dollar savings: "Contributing $25K to Solo 401k saves $8,250 in taxes this year."

Growth Projections

Model retirement growth at different return rates to see long-term impact of your choices.

Roth vs Traditional Analysis

Understand when Roth (pay taxes now) beats Traditional (pay taxes later) based on your situation.

Real-World Examples

See how different users benefit from this feature.

Consultant Earning $120K

“Deciding between SEP IRA and Solo 401k”

Solo 401k allows $46,000 contribution vs SEP's $30,000—saving $5,280 more in taxes.

Freelancer Earning $60K

“Wants to maximize retirement savings on limited income”

AlphaTax shows optimal contribution amount that balances tax savings with cash flow needs.

High Earner ($200K+)

“Considering Mega Backdoor Roth strategy”

Retirement Optimizer models after-tax Solo 401k contributions and Roth conversion benefits.

Why AlphaTax Is Different

Alternative	Limitation	AlphaTax Advantage
TurboTax	Asks for contribution amounts—doesn't help you decide	Compares options and recommends optimal contribution strategy
Generic Online Calculators	Don't know your actual income or tax situation	Calculations based on your real data with personalized recommendations
Financial Advisor	Expensive and may not specialize in self-employed retirement	Self-employed focused analysis at a fraction of the cost

Best For These Professions

Tax Guide for Consultants

Average savings: $7,200

Tax Guide for Freelance Writers

Average savings: $3,400

Compare With Alternatives

AlphaTax vs Collective

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Bookkeeping with Human Touch

Frequently Asked Questions

What's the difference between SEP IRA and Solo 401k?

Both are retirement accounts for self-employed. SEP IRA is simpler to set up but limits contributions to 25% of net self-employment income. Solo 401k allows higher contributions (employee + employer portions) and offers Roth option.

Can I have both a SEP IRA and Solo 401k?

Technically yes, but contribution limits are shared between employer contribution portions. Most people choose one or the other. AlphaTax helps you decide which is better for your situation.

When should I choose Roth over Traditional?

Generally, Roth is better if you expect higher tax rates in retirement, and Traditional is better if you expect lower rates. AlphaTax models both scenarios based on your current tax bracket.

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