The Retirement Plan Your Business — and Your Tax Return — Have Been Waiting For

More Contribution Room Than Any Employee Will Ever Have

As a business owner, the retirement contribution limits available to you are substantially higher than what a typical W-2 employee can access. A Solo 401(k) allows self-employed individuals to contribute up to $69,000 per year (2024 limit) — a combination of employee deferrals and employer contributions that can dramatically reduce taxable income in the same year the money goes in. That's not a minor adjustment to your tax picture. For many owners, it's one of the largest legal deductions available to them.

Because we work directly with TPSA, our affiliated CPA firm, we can model the actual tax impact of different plan designs against your business income before you commit to anything. The goal is to find the structure that maximizes your contribution capacity and minimizes what you owe — without creating administrative complexity you don't need.

Four Plan Types, Matched to Where Your Business Actually Is

Not every retirement plan fits every business. The right structure depends on how many people you employ, how your business is taxed, and how much flexibility you want year to year. Here's how the main options compare:

• SEP IRA: The simplest option for self-employed individuals and small teams. Contributions are made entirely by the employer, there's no annual filing requirement, and the setup is straightforward. Contribution limits are generous — up to 25% of compensation, capped at $69,000 for 2024. A strong fit if you want maximum simplicity.
• SIMPLE IRA: Designed for small employers who want to offer a matching benefit to employees. Employees contribute from their own paychecks, and the employer provides a match. Lower contribution limits than a 401(k), but also lower administrative overhead. A practical middle ground for businesses with a small, stable team.
• Solo 401(k): The highest contribution limits available to self-employed individuals with no full-time employees other than a spouse. You contribute as both employee and employer, which creates the most room to shelter income. Requires more annual administration than a SEP IRA but delivers meaningfully more contribution capacity for high-earning owners.
• Traditional 401(k): The right structure for growing companies with multiple employees. Offers the broadest flexibility in plan design, vesting schedules, and matching formulas — and signals to employees that the company is serious about their long-term wellbeing. More complex to administer, but built to scale.

We'll help you identify which structure fits your current situation and what a transition might look like if your business grows past the point where your current plan still makes sense.

The Tax Case for Acting This Year

Contributions to most business retirement plans are deductible — which means every dollar you put in reduces your taxable business income dollar for dollar. For a business owner in a 32% or 37% federal bracket, that's a real and immediate return before any investment growth is factored in. The combination of a current-year deduction and long-term tax-deferred compounding is what makes employer retirement plans one of the most efficient tools available to business owners.

This is also where the TPSA connection becomes directly useful. Rather than making a retirement plan decision in isolation and hoping it aligns with your tax strategy, we work alongside your CPA from the start. The plan design, the contribution amount, and the timing of contributions are all coordinated with your overall tax picture for the year — so nothing is left on the table and nothing creates a surprise at filing.

Offering Retirement Benefits That Attract People Worth Keeping

If part of your goal is building a benefit that helps you recruit and retain good employees, a well-designed retirement plan is one of the most effective tools available. Employees at every level of compensation value employer retirement contributions — often more than equivalent cash compensation — because of the tax advantages they receive as participants.

We advise on plan design with both the owner's goals and the employee experience in mind. That includes helping you structure a vesting schedule that rewards longevity, select a plan provider whose investment options and fee structure are appropriate for your team, and communicate the benefit in a way that employees actually understand and value. You shouldn't have to become a benefits administrator to offer a competitive retirement plan. We handle the design and oversight so you can stay focused on the business.

Fiduciary Responsibility: What Business Owners Often Don't Know

Once a retirement plan is established under ERISA — which covers most 401(k) plans — the business owner becomes a plan fiduciary. That's not a formality. It means you have a legal obligation to act in the best interest of plan participants, monitor investment options, and ensure the plan is being administered properly on an ongoing basis. Many small business owners are unaware of this responsibility until something goes wrong.

We help business owner clients understand what their fiduciary duties actually require and put the right processes in place to meet them. That includes reviewing investment menus, monitoring plan fees, and documenting the decisions made on behalf of participants. If you already have a plan in place, a fiduciary review is a reasonable place to start — especially if the plan was set up some time ago and hasn't been reviewed since.