🔹 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.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.