🔹 Solo 401(k)

Employee deferral limit: $23,500

Catch-up (age 50–59 or 64+): +$7,500 ($31,000 total)

Super catch-up (ages 60–63): +$11,250 ($34,750 total)

Employer contribution: Up to 25% of compensation

Combined max:

$70,000 if under 50

$77,500 if 50–59 or 64+

$81,250 if 60–63

🗓️ Plan must be established by December 31, 2025 to make 2025 employee deferrals. Employer contributions can be made up until your 2025 tax filing deadline.

🔹 SEP IRA

Employer contribution: Up to 25% of compensation, capped at $70,000 for 2025.

No employee deferrals allowed.

Great for businesses that want simplicity and flexibility on timing — can still open and fund by your 2025 filing deadline.

🔹 SIMPLE IRA

Employee deferral: Up to $16,000

Catch-up (50+): +$3,500

Employer match: Dollar-for-dollar up to 3% of comp, or 2% nonelective for all eligible employees.

Can also qualify for tax credits (see below).

🔹 Defined Benefit Pension Plans

Contribution limits depend on actuarial factors — but often allow well into six figures for high-earning contractors nearing retirement.

Tax Credits You May Qualify For

Start-up plan credit: Up to $15,000 (over 3 years)

Employer contribution credit: Up to $1,000 per employee (phasing down over 5 years)

Auto-enrollment credit: $500/year for 3 years

If your business has a strong 2025, setting up (or maxing out) a retirement plan before year-end can give you:

A big tax deduction,

A future savings cushion, and

The peace of mind that you’re building wealth, not just earning income.