09/04/2026
💼 The Business Owner’s Guide to Retirement Planning
The right retirement plan can help you build long-term wealth, manage taxes, and create financial security.
🏦 Individual Retirement Accounts
Traditional IRA: Contributions may be tax-deductible, and investment growth is generally tax-deferred.
Roth IRA: Contributions are made with after-tax dollars, while qualified withdrawals are generally tax-free.
2026 Limit: Up to $7,500, plus a $1,100 catch-up contribution for those age 50+.
Backdoor Roth IRA: May help higher-income taxpayers access Roth benefits through a Traditional IRA conversion.
🏢 SEP Retirement Plans
Designed for small businesses, self-employed individuals, and solo practitioners.
Employers can contribute up to 25% of compensation, subject to the $72,000 2026 limit.
Contributions are immediately 100% vested, and employers may receive a tax deduction.
Flexible contributions can be useful when business cash flow varies.
📈 401(k) Plans
Employees can contribute through payroll, with potential employer contributions.
2026 employee deferral limit: $24,500; age 50+ catch-up generally adds $8,000.
Solo 401(k): Designed for self-employed individuals and spouses.
Safe Harbor 401(k): Requires employer contributions and avoids certain nondiscrimination testing.
💼 Profit Sharing & Pension Strategies
Defined Benefit Plans: Provide a predetermined retirement benefit, with the employer carrying investment risk.
Defined Contribution Plans: Employer contributions are defined, while the ultimate retirement benefit depends on contributions and investment performance.
💡 The right strategy depends on your income, business structure, employees, cash flow, and retirement goals.
