Unlock Tax Savings with Retirement Plans!

Small business owners, want to slash your 2025 tax bill while building wealth? Leverage tax-advantaged retirement plans like the Solo 401(k) or SEP IRA! Contribute up to $69,000 (or $76,500 if 50+) with a Solo 401(k) to dramatically reduce your taxable income while securing your financial future.

Solo 401(k): The Gold Standard

For self-employed individuals without employees (other than a spouse), the Solo 401(k) offers maximum flexibility and contribution limits. You can contribute as both employee (up to $23,500) and employer (up to 25% of compensation), reaching the combined limit of $69,000 for 2025.

Additional benefits include Roth contribution options, loan provisions, and the ability to make contributions until your tax filing deadline (including extensions).

SEP IRA: Simplicity and Power

SEP IRAs offer simpler administration with employer-only contributions up to 25% of net self-employment income, maxing at $69,000. They're ideal for business owners who want straightforward retirement savings without the administrative complexity of a 401(k).

You can establish and fund a SEP IRA as late as your tax filing deadline, including extensions—making it a powerful last-minute tax reduction tool.

Cash Balance Plans: Supercharged Savings

For high-income business owners over 50, cash balance pension plans can allow contributions exceeding $200,000 annually. These defined benefit plans require actuarial administration but provide unmatched tax deduction potential.

The Math: Real Savings

A $69,000 retirement contribution saves approximately $24,000-$28,000 in federal taxes alone for someone in the 35-40% bracket. Add state tax savings, and the government effectively subsidizes a significant portion of your retirement savings.

Getting Started

Most plans must be established by December 31st to make contributions for that tax year (SEP IRAs are the exception). Contact your CPA now to determine the optimal retirement plan strategy for your situation.