Maximize Retirement Savings: SEP IRAs & Solo 401Ks

0:00It's March 28th. Welcome to Durham News Today, powered by AI. Running your own business means taxes eat up a huge chunk of your earnings every year, but IRS rules let self-employed folks and small owners stash. Away tens of thousands tax-free through special retirement plans for 2025. A SEP IRA tops out at $70,000, fully deductible based on 25% of your net income. Solo 401K plans go even higher if you're the only employee, combining employee deferrals up to $23,500, plus employer matches. You got flexibility on deadlines that beats regular IRAs. For SEP IRAs, fund them by your tax filing date, even with extensions. April 15th, 2026 for sole proprietors, or October 15th, if extended. Solo 401Ks need plans set up by December 31st, 2025 for deferrals, but contributions can wait till filing time too. These plans hit hard on your tax bill, especially for six-figure earners where traditional

1:03IRAs cap at just $7,000. Owners over 50 snag catch-up bucks, $7,500 in Solo 401Ks, more for those 60 to 63. No employees? Perfect fit. With staff, match their share to stay compliant. High rollers in their 50s or 60s, level up with cash balance plans, sheltering over $200,000 yearly, often paired with a 401K. Secure 2.0 Act throws in tax credits too. Up to $5,000 start up for small teams, plus per employee perks slashing. Set up costs big time, don't sleep on this. Shout your accountant now, crunch your projected income, pick the ride plan before year-end locks kick in. Missing deadlines or picking wrong means leaving cash on the table, but acting smart turns your hard work into real retirement muscle.