As a solo business owner operating under an S corporation, you have access to some powerful retirement plan options that not only help you build long-term wealth but also provide significant tax advantages. The best part? You can tailor your plan based on your income level, cash flow, and future financial goals.

Here are some of the top retirement plans to consider:

✅ SEP-IRA – A simple, low-maintenance option that allows employer contributions up to $69,000 for 2024 ($70,000 for 2025). Great for maximizing contributions in high-income years.

✅ Solo 401(k) – Offers the highest contribution limits by combining salary deferrals with employer contributions. If you qualify for super catch-up contributions, you can set aside up to $81,250 in 2025—making it one of the most powerful options for tax deferral and retirement savings.

✅ SIMPLE IRA – A great option for those with modest salaries, allowing both employee deferrals and employer-matching contributions. Easier to administer than a 401(k).

✅ Profit-Sharing Plan – Allows flexible employer contributions of up to 25% of salary, plus the potential for loan options if you need access to funds before retirement.

Each of these plans has different tax benefits, administrative requirements, and flexibility levels. The right choice depends on your salary structure, cash flow, and long-term financial strategy.

🚀 If you haven’t set up a retirement plan yet, there’s still time to act for the 2024 tax year, depending on the plan you choose! Don’t leave tax savings and wealth-building opportunities on the table.

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