ROTH Solo 401(k) & ROTH SEP

I came across someone who has been making contributions to both their Solo ROTH 401(k) & a ROTH SEP IRA (which I believe came to be as a result of SECURE ACT since I had never seen a ROTH SEP). He was told that he can contribute the max allowed to the SEP but can only contribute as the employer to Solo 401(K). Is this correct? Any additional color would be much appreciated.

Also, is it possible to contribute 1/2 as Roth and 1/2 pretax?



  • I would be surprised if this individual is making Roth SEP IRA contributions.
  • I am not aware of any SEP or SIMPLE IRA custodians offering plans with Roth contributions yet. The IRS has yet to release any regulations or guidance on such Roth accounts/contributions.
  • Not to mention, I would think the current 5305-SEP IRA prohibition against maintaining such a plan and  qualified plan (e.g. 401k) for the same tax year. Would also apply to 5305-SEP Roth IRA plans/accounts 
  • Although when Roth SEP IRA contributions are available. I wouldn’t be surprised if prototype Roth SEP plans/accounts could also coexist with a one-participant 401k plan, subject to the employer contribution and annual addition limits.
  • I know prototype SEP IRA plans have been available from at least Schwab and Merrill Edge for years.

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