Retirement Options for Small Business Owners 

Retirement Options for Small Business Owners 

Date: April 26, 2022,

As a small business owner in Indiana, you may have questions about how to best save for retirement. Unlike employees, small business owners don’t have an employer who’s contributing to their retirement account, such as a 401(k). At Harvest Financial Planning, LLC, we work with small business owners throughout the state who are wondering the same things that you are. Here’s what you should know about how to save for retirement as a small business owner:

Self-Employed 401(k)

Sometimes called a solo 401(k), a self-employed 401(k) is a special type of retirement savings option for self-employed small business owners who don’t have any employees. The account is very similar to a standard 401(k): you’ll make contributions from your pre-tax earnings and, over the years, those investments can grow tax-deferred until withdrawn. A difference between this type of 401(k) and a traditional 401(k), though, is that the contribution limits are much higher. 


A SIMPLE IRA plan is an option for small business owners with fewer than 100 employees to contribute to both their own retirement savings and employees’ retirement savings. The plan will follow the same investment, distribution, and rollover rules as a regular IRA. 


Another great option for self-employed small business owners is to set up a SEP IRA. Standing for Simplified Employee Pension Plan (SEP), this type of IRA allows employers to set aside money for themselves and their employees. Contribution limits are based on income/revenue, so they are flexible year-over-year. They’re also available to any size business, so they may be a great option whether it’s just you or your business is growing. 

Thinking About Retirement As a Small Business Owner

When thinking about retirement as a small business owner and the retirement savings plan that may be best for you, it’s important to consider what you want your life to look like during retirement, what your current tax burden is and how different investment options may impact that, the value of your business, and how much you’ll be able to save regularly. 

Call Harvest Financial Planning, LLC Today

At Harvest Financial Planning, LLC, we have experience working with business owners like you who have questions about retirement planning. To learn more about the various retirement plan options and to get a recommendation from a financial professional, call our team directly today. 


Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.
This material was prepared for Harvest Financial Planning’s financial advisor use.
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