 And I had matching with it and whatnot. And as a sole proprietor, if I just use a normal IRA, I have much less of a tax benefit. I'm restricted on how much I can put in there. Well, then the typical question is, be, well, could I set up a 401k plan for my sole proprietor business so I can put more money into my account and also possibly help employees? But that's too complicated, oftentimes, for a sole proprietor. So these simple, that SEP and the simple are types of plans that could increase your ability to put money into a plan more similar, giving benefits, more similar to a 401k, but that are easier to administrate than a 401k. So that's a whole other topic in and of itself that you can kind of dive into. What's the difference between a SEP, a simple, a 401k, or a solo 401k? And when would those be best for like a sole proprietor type of business? So these plans, but if you have those plans set up, then instead of just having an IRA deduction, you might be able to deduct the SEP and the simple rather than on the Schedule C, you put in it on the Schedule I, the Schedule I. But in order to qualify for those plans, you typically have something like a Schedule C type of business, a sole proprietor. So these plans allow you to save for retirement while potentially reducing your tax income through contributions. All right, a SEP plans, so what are they? These allow contributions of up to 25% of your net earnings from self-employment with a maximum of $66,000 for 2023. That is far higher than, of course, the maximum you can put in if you're just going to say, all right, I'll just put money into an IRA because I don't have access to a 401k plan because I'm not an employee. So that's a huge benefit. SEP plans are relatively easy to set up with a simple one page form or through an IRS approved, quote, prototype SEP plan from financial institutions. So they're pretty easy to do. That's the point. They're easier than a 401k plan. You just want to make sure that you're following the rules properly so that you're in compliance. Then you have the simple IRA plans. So for 2023, you can contribute all your net earnings from self-employment up to $15,500. So you can see some differences between the limits here of the two, plus an additional $3,500 if you're 50 or older. And you have the option of either a 2% fixed contribution or a 3% matching contribution. So you can go into the differences between a simple and a SEP. One of the other benefits, by the way, is that you might be able to think about your SEP contributions after you actually do your taxes, meaning how would I know that I'm going to put in 25% until I actually do my taxes, which is going to happen after the tax year. For 2023 tax year, I'm going to do my taxes in 2024. It would be nice if I can do my taxes and then figure out how much or top off at least the amount that I'm going to put into the SEP, because now I know how much I could put into it. That's another thing to take into consideration when you're comparing these plans. Are you allowed to put money into it after the tax year so that you can figure out the best amount to put into it? So then we have the solo 401k plan. So these plans allow annual salary deferrals up to $22,500 in 2023, plus an additional $7,500 if you're 50 or older on a pre-tax basis or as designated Roth contribution. So you can also contribute up to an additional 25% of your net earnings from self-employment for total contributions of up to $66,000 for 2023, including salary deferrals. So this one usually gives the highest amount of benefits, a 401k plan, but also is the most complex to set up and takes the most administrative work. So the contributions you make to these plans can be deducted on your tax return, specifically on Form 1040 Schedule 1 under the line for self-employed, SEP, simple and qualified plans. It's important to ensure these contributions are not mistakenly deducted on Schedule C. This is where the Schedule C, once again gets a little confusing because now you're like, well, wouldn't that deduction be on the Schedule C? Well, no, it's on the Schedule 1. So you have to know that. So as this could require an amendment if you do it wrong. So to navigate the specifics, now you might ask why is it on Schedule 1, by the way, because the Schedule C, notice if you put it on the Schedule C, it would reduce your bottom line on the Schedule C and would have an impact on the self-employment tax, right? By putting it on Schedule 1, then it's gonna reduce your federal income taxes but possibly not have an impact. You're still gonna be paying self-employment tax on those earnings, right? So to navigate, and this is similar to the difference on the W-2 between like box one and box three for the federal income tax, wages versus box three, social security wages and box five, Medicare, okay. So to navigate the specifics of each plan and to determine which is most suitable for your circumstances, as well as understand contribution limits and tax implications, you can refer to the IRS Publication 560 on the IRS website. Quick look at the line instruction. Self-line 16, self-employed, simple and qualified plans. If you were self-employed or a partner, you may be able to take this deduction. You can see Publication 560 or if you were a minister, Publication 517.