Retirement Plans for Small Business Owners

Want to save more for retirement and reduce taxes today? Here’s how small business owners can leverage powerful retirement plans to build wealth

Let's dive into the best options for small business owners like you!

If you’re self-employed or running a small business, you’ve probably realized that you don’t get the luxury of a company-sponsored 401(k).  

But here’s the silver lining—retirement plans for small business owners can actually be more powerful.  

With the right structure, you can contribute more than most traditional employees, reduce your tax burden, and build real wealth.

If you’ve been searching for a  CPA near me for small business or a small business CPA in Houston who understands retirement planning, this guide is for you.

 🔹 Solo 401(k): The Powerhouse Plan

Meet James, a Houston-based freelance consultant who turned his side hustle into a thriving business.  

When he left corporate America, he worried about losing his company 401(k)—until he discovered the Solo 401(k).  

With the help of a personal CPA in Houston he learned he could contribute as both employee and employer

—saving up to $70,000 in 2025 (plus catch-up contributions if he’s over 60).

Why it works:  

     ➝   Choose traditional (pre-tax) or Roth (after-tax)  
     ➝   Invest in everything from stocks to real estate  
     ➝   No employees (other than a spouse)? Even better  

Best for: High-income solopreneurs and side giggers  

 🔹 SEP IRA: Simplicity with a Big Impact  

Lisa, a graphic designer who occasionally hires subcontractors, needed something simple yet effective.  

With a SEP IRA, her business can contribute up to 25% of her income—maxing at $70,000 in 2025.  

An added bonus? She can still fund a Roth IRA separately.

Why it works:  

    ➝   Easy to manage  
    ➝   No annual IRS filings  
    ➝   Flexible contributions  

Best for: Self-employed professionals with fluctuating income  

A CPA near me for taxes can guide you through setup and ensure you’re maximizing deductions.

 🔹 SIMPLE IRA: A Retirement Plan That Grows with You  

Mark owns a small digital agency with a handful of employees.  

A SIMPLE IRA gives him an affordable way to offer benefits without the complexity of a full-blown 401(k).

Contribution limits (2025):

 
    ➝   Employees: $16,500  
    ➝   Employer: 3% match or 2% flat contribution (capped at $350,000 salary)

Why it works:

 
    ➝   Lower cost than a traditional 401(k)  
    ➝   Immediate vesting for employees  
    ➝   Increased employer flexibility under SECURE 2.0  

Best for: Small business owners scaling their teams  

Your tax accountant in Houston can help you decide whether this or a 401(k) is a better fit for your goals.

 🔹 Defined Benefit Plans: Supercharged Retirement  

If you’re earning big and want to shelter serious money from taxes, this is your next move.  

Take Robert, a Houston-based doctor.  

With the help of a trusted Houston CPA for tax preparation he’s using a defined benefit plan to contribute over $200,000 a year.

Why it works:

 
    ➝   Ideal for high, stable income  
    ➝   Huge long-term tax advantages  

Best for: High-income professionals nearing retirement  

📍 Need help?  

Being self-employed means you’re in charge of your future—but you’re not alone.  

Whether you're looking for an  international tax CPA in Houston or simply a CPA near me for small business, the right professional can help you make smart, strategic retirement decisions.

From Solo 401(k)s to defined benefit plans, your options are wide—but the clock is ticking.