Solo 401(k): Self-Employed Retirement Tax Goldmine

If you're self-employed – the entrepreneur, the freelancer, the consultant – figuring out retirement savings can feel like you've been handed a map to a treasure chest, but the map is written in ancient hieroglyphics. You don't have a cushy 401(k) handed to you; you're in charge of building your own financial fortress for the future.

It’s not just about whether you save, but where and how you strategically place your funds. Forget any notion of a 'perfect' retirement account for everyone; the right choice is a custom-built weapon for your specific financial arsenal, shaped by your income, goals, and how you see your future unfolding.

Insights

• Choosing the "best" retirement account when you're your own boss depends entirely on your income, how much you plan to sock away, your age, business setup, and frankly, how much paperwork you can stomach.
• The Solo 401(k) is a strong contender for its high contribution capacity and adaptability, particularly with the Roth option for your "employee" contributions.
• A SEP IRA provides straightforward administration and substantial contribution ceilings, suiting those with variable income or an aversion to red tape, but it doesn't have a Roth component yet for most.
• Defined Benefit Plans provide the firepower for the largest tax-deductible contributions, a key advantage for older, high-earning individuals needing to make up lost ground in their retirement funds.
• Personal IRAs (Traditional and Roth) can bolster other retirement strategies or be the main savings tool for those with more modest targets, though they have lower contribution caps and Roth IRAs come with income limitations.

Understanding Your Battlefield: Are You Self-Employed and What Shapes Your Choice?

Before we examine the specific retirement accounts, let's be crystal clear on who qualifies for these self-employed plans. For retirement planning purposes, "self-employed" isn't some exclusive club; it covers a broad territory.

This includes sole proprietors, partners in a partnership, members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership, and independent contractors—basically, anyone who receives a Form 1099-NEC or 1099-MISC for their work. If you're generating your own income without a traditional W-2 from an employer for that specific income stream, these retirement strategies are designed for you.

Now, let's get one thing straight: there's no single "best" retirement account that magically suits every self-employed individual. That's a myth. The optimal choice is a strategic one, deeply intertwined with your personal financial situation and long-term objectives.

Your current income, how much you realistically aim to save each year, your age, the legal structure of your business, and even your educated guess on future tax rates all play pivotal roles. Some will want to maximize their contributions above all else, others will value simplicity of administration, and some will seek specific features like loan provisions or the tax advantages of Roth contributions.

"The key is not to prioritize what’s on your schedule, but to schedule your priorities."

Stephen Covey Author and Leadership Expert

Covey's wisdom is directly applicable here. Making your financial future a priority means selecting the right retirement vehicle and consistently funding it. It’s about deliberate action, not wishful thinking.

Your Arsenal: A Look at Key Retirement Account Types

Alright, let's inspect the primary weapons in your retirement savings arsenal. Each account type comes with its own distinct characteristics, advantages, and potential limitations. Understanding these is fundamental to making an informed decision.

1. SEP IRA (Simplified Employee Pension Plan)

A SEP IRA is a retirement plan that allows you, as the employer (even if that's just you), to make tax-deductible contributions towards your own retirement. It's often lauded for its administrative ease.

Who it's for: This plan frequently appeals to freelancers, sole proprietors, and small business owners, especially those who appreciate minimal paperwork or experience fluctuating income. If you have employees, you can use a SEP, but you'll generally need to contribute for them too.

Contribution Source: Contributions come solely from the "employer" side – that's your business. Employees, including yourself in an employee capacity, cannot make salary deferrals into a SEP IRA.

Contribution Limits: As the employer, you can contribute up to 20% of your net adjusted self-employment income (NASEI) if you're a sole proprietor or partner. If your business is incorporated (like an S-Corp or C-Corp) and you draw a W-2 salary, the limit is up to 25% of that W-2 compensation. For 2025, the absolute maximum contribution you can make to a SEP IRA is capped at $70,000. Always confirm current IRS limits, as these figures can be adjusted.

Calculating NASEI: For sole proprietors, NASEI is your net profit from Schedule C (Form 1040), less one-half of your self-employment taxes. This calculation is vital for determining your maximum permissible contribution.

Tax Treatment: Contributions are tax-deductible for your business, which reduces your personal taxable income. Investment earnings grow tax-deferred, meaning you don't pay taxes on them until withdrawal. Withdrawals in retirement are then taxed as ordinary income.

Pros: SEP IRAs are known for being relatively simple to establish and manage, involving less complex administration than some other plans. Contributions can be flexible; you can adjust the amount or even skip contributions in lean years. The contribution limits are quite high.

Cons: A significant drawback is the absence of a Roth (after-tax) contribution option within the SEP IRA itself, though legislative changes are paving the way for this possibility if providers adopt it. If you have eligible employees, you must contribute for them at the same percentage of compensation as you contribute for yourself, which can become a considerable expense.

Establishment & Funding Deadline: You can set up a SEP IRA as late as your business's tax filing deadline (including extensions) for the year you intend to make the contribution. Contributions can also be made up to this same deadline.

2. Solo 401(k) (Individual 401(k) or Uni-K)

The Solo 401(k) is a retirement plan engineered specifically for business owners who have no common-law employees, other than a spouse who also works in the business. This is often a heavyweight contender.

Who it's for: This is a very attractive option for self-employed individuals, sole proprietors, partners, and incorporated small business owners operating without full-time W-2 employees (beyond themselves or a participating spouse).

Contribution Structure: A major strength of the Solo 401(k) is your ability to contribute in two distinct capacities: as an "employee" and as an "employer."

• Employee Contribution (Salary Deferral): As the employee, you can defer up to 100% of your compensation, up to the annual IRS limit. For 2025, this is $23,500. If you are age 50 or older, you can make an additional catch-up contribution. For those aged 50-59 and 64+, this catch-up is $7,500, bringing your potential employee contribution to $31,000 for 2025. For those aged 60-63, a larger catch-up of $11,250 is permitted, allowing for a total employee contribution of $34,750 for 2025.
• Employer Contribution (Profit Sharing): As the employer, your business can contribute up to 20% of NASEI (for sole proprietors/partners) or 25% of W-2 compensation (if incorporated).

Combined Limit: The total contributions from both employee and employer sources cannot exceed an overall IRS limit. For 2025, this general limit is $70,000. However, with catch-up contributions, if you are aged 50-59 or 64 and older, the total can reach $77,500. For those aged 60-63, the total combined limit can be as high as $81,250 for 2025. Remember to verify these IRS limits annually.

Roth Solo 401(k) Option: Many Solo 401(k) plan providers offer a Roth feature. This allows your employee contributions (salary deferrals) to be made on an after-tax basis. Employer contributions are always made on a pre-tax basis.

Tax Treatment (Traditional Solo 401(k)): Employee deferrals are pre-tax, reducing your current taxable income. Employer contributions are also tax-deductible for the business. Earnings grow tax-deferred, and withdrawals in retirement are taxed as ordinary income.

Tax Treatment (Roth Solo 401(k) Employee Contributions): Employee deferrals are made with after-tax dollars, so there's no upfront deduction. The big payoff? Investment earnings grow tax-free, and qualified withdrawals in retirement are completely tax-free. This can be incredibly valuable if you anticipate being in a higher tax bracket during your retirement years.

Pros: Solo 401(k)s typically offer the highest potential contribution limits for most self-employed individuals. They provide flexibility in contributions and the highly beneficial option for Roth contributions on the employee portion. Some plans also permit participant loans, though this feature should be approached with caution.

Cons: These plans are more involved to set up and administer than a SEP IRA. If your plan assets exceed $250,000 at the end of the year, you'll generally need to file Form 5500-EZ with the IRS annually, which adds a layer of paperwork.

Establishment Deadline: This is critical: the Solo 401(k) plan document must generally be established by December 31 of the tax year for which you intend to make contributions. You can't wait until tax time the following year to set it up for the prior year, unlike a SEP IRA.

Funding Deadline: Employee salary deferrals should ideally be made by December 31 of the tax year (or by your payroll date if you run formal payroll, even for yourself as an S-Corp owner). Employer profit-sharing contributions can be made up until your business's tax filing deadline, including extensions.

3. SIMPLE IRA (Savings Incentive Match Plan for Employees)

A SIMPLE IRA is a tax-favored retirement plan that small employers, including the self-employed, can establish for themselves and any employees. Its name suggests ease, but it has specific rules.

Who it's for: This plan is geared towards self-employed individuals or small businesses with 100 or fewer employees who earned at least $5,000 in compensation during the preceding year. If you're a solo operator, you function as both employer and employee.

Contribution Structure: SIMPLE IRAs involve employee salary deferrals and mandatory employer contributions.

• Employee Contribution (Salary Deferral): You (and any eligible employees) can contribute up to an annual IRS limit. For 2025, this is $17,600. If age 50 or older, an additional catch-up contribution of $3,850 is allowed, for a total potential of $21,450.
• Employer Contribution: As the employer, you must make either:
  1. A matching contribution up to 3% of the employee's compensation (you match your own contributions if you're solo).
  2. A non-elective contribution of 2% of compensation for each eligible employee, regardless of whether they contribute.

Tax Treatment: Employee contributions are pre-tax, reducing current taxable income. Employer contributions are tax-deductible for the business. Earnings grow tax-deferred, and withdrawals are taxed as ordinary income in retirement.

Pros: SIMPLE IRAs are less complex to administer than a full 401(k) and permit employee deferrals, which SEP IRAs do not. This can be a good middle ground.

Cons: The contribution limits are lower than those for SEP IRAs or Solo 401(k)s. The employer contributions are mandatory, offering less financial flexibility in lean business years. There's a steeper penalty (25% instead of the usual 10%) for withdrawals made within the first two years of participation. Generally, you cannot maintain another qualified retirement plan if you have a SIMPLE IRA.

Establishment Deadline: A SIMPLE IRA plan must generally be established by October 1 of the year for which contributions will be made.

Funding Deadline: Employee salary deferrals are typically made via payroll throughout the year. Employer contributions must be made by the business's tax filing deadline, including extensions.

4. Traditional IRA

A Traditional IRA is a personal retirement account allowing individuals with earned income to save for retirement, with investment earnings growing tax-deferred. It's a basic tool, but can be effective.

Who it's for: Any self-employed individual with taxable compensation can open a Traditional IRA. It can be used alongside other self-employed retirement plans or as a standalone option if your savings goals are more modest.

Contribution Limits: For 2025, you can contribute up to $7,000, or your taxable compensation for the year, whichever is less. If age 50 or older, an additional $1,000 catch-up contribution is allowed, for a total of $8,000. Always check current IRS limits.

Tax Deductibility: Contributions to a Traditional IRA may be tax-deductible. However, if you (or your spouse, if filing jointly) are covered by an employer retirement plan – and SEP IRAs, Solo 401(k)s, and SIMPLE IRAs count as employer plans – your ability to deduct Traditional IRA contributions is phased out at higher Modified Adjusted Gross Income (MAGI) levels. If neither you nor your spouse is covered by a workplace plan, you can typically deduct your full contribution.

Tax Treatment: If deductible, contributions lower your current taxable income. Earnings grow tax-deferred. Withdrawals in retirement are taxed as ordinary income.

Pros: Traditional IRAs are widely available and very easy to open. They can be a good way to add to savings in other retirement plans.

Cons: The contribution limits are much lower than those for employer-sponsored plans like SEPs or Solo 401(k)s. The deductibility limitations can be a significant drawback if you're also participating in another workplace plan and have a higher income.

5. Roth IRA

A Roth IRA is another type of personal retirement account, but it plays by different tax rules: contributions are made with after-tax dollars, paving the way for tax-free growth and tax-free qualified withdrawals in retirement. This is where many see a long-term strategic advantage.

"Money is a servant if you control it; it’s a master if it controls you."

Dave Ramsey Personal Finance Expert and Radio Show Host

A Roth IRA can be an excellent vehicle for making your money serve your future self well, particularly if you believe tax rates might be higher when you retire.

Who it's for: Any self-employed individual with taxable compensation can contribute, as long as their MAGI falls below certain thresholds.

Contribution Limits: The limits for 2025 are the same as for Traditional IRAs: $7,000, plus a $1,000 catch-up if age 50 or older, or your taxable compensation, whichever is less. Verify current IRS limits.

MAGI Limits: Eligibility to make direct contributions to a Roth IRA is phased out and eventually eliminated at higher MAGI levels. For 2025, the phase-out range for single filers is $146,000 to $161,000 of MAGI, and for those married filing jointly, it's $230,000 to $240,000 of MAGI. These income limits are subject to change, so always check the current IRS figures.

Tax Treatment: Contributions are made with after-tax dollars, meaning you don't get an upfront tax deduction. The reward comes later: investment earnings grow completely tax-free, and qualified withdrawals in retirement (generally, after age 59½ and after the account has been open for five years) are also tax-free.

Pros: The prospect of tax-free growth and withdrawals is a powerful draw. Contributions (but not earnings) can be withdrawn tax-free and penalty-free at any time, for any reason, offering a degree of flexibility. Roth IRAs are also not subject to Required Minimum Distributions (RMDs) during the original owner's lifetime.

Cons: There's no immediate tax deduction for contributions. The income limitations can prevent high earners from contributing directly. Contribution limits are lower than employer-sponsored plans.

Backdoor Roth IRA: For high-income earners who exceed the MAGI limits for direct Roth IRA contributions, a "backdoor" Roth IRA strategy might be an option. This involves making a non-deductible contribution to a Traditional IRA and then promptly converting that Traditional IRA to a Roth IRA. Be aware that tax implications can arise if you have other pre-tax IRA assets, so professional advice is very important here.

6. Defined Benefit Plan (Cash Balance Plan)

A Defined Benefit Plan is a more sophisticated type of qualified retirement plan. Annual contributions are calculated by an actuary to fund a predetermined retirement benefit. A Cash Balance Plan is a common type of defined benefit plan often used by small businesses and self-employed individuals looking for substantial deductions.

Who it's for: These plans are generally most suitable for older, high-income self-employed individuals or small business owners (often age 45-50+) who want to make very large, tax-deductible contributions to catch up on retirement savings rapidly. Think of it as a way to turbocharge your savings in your peak earning years.

Contribution Limits: Contributions aren't based on a simple percentage of income. Instead, they are actuarially determined based on factors like your age, income, and the desired retirement benefit you aim to fund. These contributions can be significantly higher than the limits for defined contribution plans like SEPs or 401(k)s, potentially exceeding $100,000 or even $200,000 annually in some cases, subject to IRS maximum benefit limits for 2025 and actuarial calculations.

Tax Treatment: Contributions are tax-deductible for the business. Investment earnings grow tax-deferred. Benefits are taxed as ordinary income when distributed in retirement.

Pros: The main attraction is the ability to make potentially massive tax-deductible contributions, far exceeding other plan types. This is especially powerful for those closer to retirement who need to accelerate their savings significantly and can handle the commitment.

Cons: Defined Benefit Plans are the most complex and expensive retirement plans to set up and maintain. They require annual actuarial services and more involved IRS filings (e.g., Form 5500 series, Schedule SB). They are also less flexible; you are generally committed to making the actuarially determined contributions each year. Failure to do so can result in penalties. This is not a casual undertaking.

"Unless commitment is made, there are only promises and hopes; but no plans."

Peter F. Drucker Management Consultant and Author

Drucker's words hit the nail on the head for Defined Benefit Plans. They demand a strong, consistent financial commitment.

Strategic Considerations: Key Factors in Your Battle Plan & The Evolving Rules

Choosing the right retirement plan isn't just about picking one from a list; it's about crafting a strategy. Several critical factors should guide your decision-making process.

Your Current and Expected Future Income: Think about your tax situation now versus in retirement. If you expect to be in a higher tax bracket when you retire, Roth contributions (available in Solo 401(k)s via employee deferrals and Roth IRAs) often make more sense due to tax-free withdrawals.

Conversely, if you're in a high tax bracket now and anticipate being in a lower one in retirement, pre-tax contributions (found in Traditional Solo 401(k)s, SEP IRAs, SIMPLE IRAs, and deductible Traditional IRAs) might be more advantageous for the upfront tax break.

How Much You Want to Contribute: Your savings ambition matters. If your goal is to sock away the maximum possible, Solo 401(k)s and Defined Benefit Plans generally offer the highest contribution potential. SEP IRAs also have high limits. SIMPLE IRAs and personal IRAs have lower ceilings, making them better suited for more modest savings goals or as supplementary accounts.

Your Age: Age influences your eligibility for catch-up contributions, which can significantly boost your savings in your later working years. It also dictates your time horizon for investment growth. Defined Benefit Plans, for instance, often become more attractive for those closer to retirement who need to save aggressively over a shorter period.

Simplicity vs. Features: How much administrative work are you willing to handle? SEP IRAs are generally the simplest to manage. Solo 401(k)s offer more features like Roth options and potential loans but come with more administrative tasks, including potential annual filings. SIMPLE IRAs offer a middle ground, especially for businesses with a few employees.

Business Structure: Your business entity (sole proprietor, S-Corp, partnership, etc.) affects how "compensation" is defined for calculating contribution limits. For S-Corps, contributions are based on the reasonable W-2 salary you pay yourself, not the total business profits. For sole proprietors and partners, it's typically based on Net Adjusted Self-Employment Income (NASEI).

Tax Diversification: Consider the wisdom of not putting all your retirement eggs in one tax basket. Do you want a mix of pre-tax retirement assets (taxable in retirement) and post-tax Roth assets (tax-free in retirement)? A Solo 401(k) with a Roth option can help achieve this tax diversification within a single plan, offering valuable flexibility down the road.

Administrative Burden and Costs: Don't overlook the time and expense associated with setting up and maintaining the plan. SEP IRAs and personal IRAs are generally low-cost and straightforward. Solo 401(k)s might have modest fees from providers. Defined Benefit Plans are, by far, the most expensive and administratively intensive due to actuarial requirements.

Flexibility: Business income can be unpredictable. Employer contributions to SEP IRAs and the employer portion of Solo 401(k)s can often be adjusted year-to-year, or even skipped, offering flexibility if income fluctuates. SIMPLE IRAs have mandatory employer contributions, offering less wiggle room. Defined Benefit Plans require consistent, actuarially determined funding, making them the least flexible in this regard.

Number of Employees: This is a big one. If you have common-law employees (other than a spouse who works in the business), a Solo 401(k) is off the table. You'd then look at options like SEP IRAs or SIMPLE IRAs, or potentially more complex plans like a standard 401(k) if you have many employees. If it's just you, or you and your spouse working in the business, the Solo 401(k) remains a prime candidate due to its high limits and features.

A Note on SECURE Act 2.0 and Evolving Rules

The retirement landscape is not static; it's continually being reshaped by legislation. The SECURE Act 2.0, for example, has introduced significant changes. One notable development, effective from 2023 onwards, is that the law now permits employer contributions to SEP and SIMPLE IRAs to be made on a Roth (after-tax) basis. Previously, only employee deferrals in some plans could be Roth.

While the law allows this, the actual availability of Roth employer contributions in SEP and SIMPLE IRAs depends on plan providers updating their offerings to accommodate this feature. Not all custodians may offer this immediately, so it's something to inquire about if you're interested.

This change could offer greater tax diversification options for self-employed individuals using these plans. Staying informed about such legislative updates, or working with a professional who tracks them, is part of smart retirement planning.

Final Marching Orders for Self-Employed Savers

Sorting through these options can seem like a complex operation, but the payoff for diligent retirement planning is a more secure financial future. Don't let the choices paralyze you; let them empower you.

"Do not save what is left after spending; instead spend what is left after saving."

Warren Buffett Investor and CEO of Berkshire Hathaway

This principle is absolutely fundamental for the self-employed, where income can often be variable. You must treat saving as a non-negotiable expense, not an afterthought. Pay yourself first, always.

Verify Current IRS Limits: Contribution limits, income thresholds, and other rules can change annually due to inflation adjustments or new legislation. It's your responsibility to refer to the latest IRS publications, such as Publication 560 (Retirement Plans for Small Business) and Publications 590-A and 590-B (Contributions to and Distributions from IRAs), or their successors. What's written here is based on information for 2025, but the game board can change.

Consult a Professional: The complexities of these plans, especially concerning contribution calculations, tax implications, and ongoing compliance, really do call for expert guidance. I strongly suggest discussing your situation with a qualified financial advisor (like a CFP® professional who understands self-employed needs) and/or a tax professional (such as a CPA).

They can analyze your specific financial situation, business structure, and long-term goals to help you pinpoint the most advantageous retirement plan(s) for your unique circumstances. This isn't a sign of weakness; it's a mark of a smart strategist.

Understand Deadlines: Pay meticulous attention to the deadlines for establishing plans and making contributions. These vary significantly by plan type. Missing them can mean losing out on valuable tax deductions or savings opportunities for an entire year. Procrastination can be an expensive enemy here.

Start Early and Contribute Consistently: The power of compound interest is most effective over long periods. Even modest, consistent contributions started early in your self-employment journey can grow into a substantial nest egg. The earlier you begin this mission, the less burdensome the savings task becomes later in life. Every dollar you invest early is a soldier working for your future financial freedom.

Choosing the best retirement account when you're self-employed is a critical command decision in your journey towards financial independence. By thoroughly understanding your options, weighing the factors carefully, and seeking appropriate counsel when needed, you can build a robust financial defense and a comfortable future. The power is in your hands.

Analysis

The core challenge for the self-employed isn't a lack of retirement savings options, but rather the paradox of choice coupled with varying levels of complexity. Unlike W-2 employees who might default into a company 401(k), the self-employed individual must proactively become their own benefits manager, financial planner, and compliance officer, all rolled into one. This demands a higher level of financial literacy and discipline.

The Solo 401(k) often emerges as a favorite for many sole proprietors or small business owners without employees (other than a spouse) for good reason: it combines high contribution limits with the flexibility of both employee and employer contributions, and crucially, the option for Roth treatment on employee deferrals.

This Roth component is a strategic game-changer for those who anticipate being in a similar or higher tax bracket in retirement, or simply value tax diversification. The new, higher catch-up contributions for those aged 60-63 further solidify its appeal for those needing to make aggressive late-stage savings.

However, the Solo 401(k)'s December 31st establishment deadline is a frequent stumbling block. Many business owners get busy and only think about tax deductions when tax season rolls around in the spring, by which time it's too late to set up a Solo 401(k) for the prior year's employee deferrals.

This is where the SEP IRA, with its later establishment and funding deadline (tax filing deadline, including extensions), offers a tactical advantage for procrastinators or those whose year-end profitability isn't clear until after December 31st. The trade-off is the lack of an employee deferral mechanism and, historically, no Roth option, though SECURE 2.0 is changing the Roth landscape for employer contributions if providers adopt it.

SIMPLE IRAs can be a practical choice for small businesses that do have a few employees, as they are less complex than a full traditional 401(k). However, the mandatory employer contributions and lower overall limits make them less attractive for high-income solo entrepreneurs compared to a Solo 401(k) or SEP IRA.

Personal IRAs (Traditional and Roth) are accessible but come with much lower contribution limits. They are excellent supplementary accounts or starting points, but rarely sufficient as the sole retirement vehicle for a successful self-employed individual aiming for a substantial nest egg. The income phase-outs for direct Roth IRA contributions also push many successful entrepreneurs towards the "backdoor" Roth IRA strategy or focusing on Roth options within a Solo 401(k).

Defined Benefit Plans represent the heavy artillery. They are unmatched for rapidly accumulating large retirement sums and securing massive tax deductions, making them ideal for established, high-income self-employed individuals (often in their late 40s or 50s) who find themselves behind on retirement savings. But this power comes at the cost of complexity, higher administrative fees, and less contribution flexibility. It's a commitment, not a casual choice.

Ultimately, the "best" plan is the one that aligns with your income, savings capacity, age, business structure, tolerance for administration, and long-term tax outlook. It often involves a trade-off: simplicity (SEP IRA) versus maximum contributions and features (Solo 401(k), Defined Benefit Plan). The decision requires a clear understanding of these trade-offs and, for many, a conversation with a financial professional who can model out the implications of each choice.

Final Thoughts

Being self-employed grants you incredible freedom, but with that comes the full responsibility for your financial future, especially retirement. The good news is that the system provides powerful tools like the Solo 401(k), SEP IRA, and even Defined Benefit Plans that can allow you to save far more, and often with greater tax advantages, than typical employees.

The key is to move beyond analysis paralysis. Understand the core features of each plan, particularly how contributions are made, the limits for the current year (like the 2025 limits discussed), and the tax implications.

The Solo 401(k) continues to be a standout for many due to its high contribution potential and Roth options, especially with the enhanced catch-up provisions for those aged 60-63. However, don't discount the SEP IRA for its simplicity and still generous limits, or a Defined Benefit Plan if you're a high earner looking to make up for lost time.

Legislative changes, like those in the SECURE Act 2.0 allowing for Roth employer contributions to SEPs and SIMPLEs (provider permitting), mean the landscape is always shifting slightly. This underscores the need for ongoing awareness or professional guidance.

Don't just set and forget. Review your strategy periodically. Your income changes, laws change, and your goals may evolve. The most successful self-employed individuals treat their retirement planning with the same seriousness and strategic thinking they apply to their business operations. Take command of your retirement strategy today.

Did You Know?

Failing to establish a Solo 401(k) plan document by December 31st generally means you lose the ability to make employee salary deferrals for that tax year. This is a common and costly oversight for many self-employed individuals who wait until tax season to think about retirement contributions.

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This article is for informational purposes only and should not be considered financial or investment advice. The views expressed are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer or company. Consult with a qualified financial professional before making any financial decisions.