Which Retirement Account Is Right for You?
Choosing the right retirement plan can dramatically impact both your current tax situation and your long-term wealth building strategy. We help you navigate the complex landscape of business retirement accounts to find the perfect fit for your company's size, structure, and goals.
SEP-IRA (Simplified Employee Pension) plans offer exceptional flexibility for business owners with few or no employees. You can contribute up to 25% of your compensation or $69,000 annually (whichever is less), making it an excellent choice for high-earning sole proprietors or partnerships. The beauty of a SEP-IRA lies in its simplicity – minimal paperwork, easy setup, and the ability to vary contributions year to year based on business performance.
SIMPLE-IRA (Savings Incentive Match Plan for Employees) plans work well for small businesses with employees who want to provide retirement benefits without the complexity of a traditional 401(k). Both employers and employees can contribute, with employer contributions being tax-deductible business expenses. This option allows for up to $16,000 in employee contributions plus employer matching.
Solo 401(k) plans, also known as individual 401(k)s, are ideal for business owners with no employees (except a spouse). These plans offer the highest contribution limits – you can contribute as both employee and employer, potentially allowing total contributions of up to $69,000 annually, or $76,500 if you're 50 or older. This dual contribution structure makes Solo 401(k)s incredibly powerful for maximizing tax-deferred savings.
The right retirement account strategy can save you thousands in taxes while accelerating your path to financial independence. We analyze your business structure, employee count, and income projections to recommend the optimal retirement plan for your situation. Don't let another year pass without maximizing these powerful wealth-building opportunities.