Business owners often focus on growth and reinvestment—but neglecting retirement planning can be a costly oversight. With 2025 contribution limits increased and new catch-up provisions in place, now is the time to act. This article from Comerica explores how to layer retirement plans, reduce taxes, and build long-term wealth.
Key takeaways:
As a business owner, you have more control over your retirement planning than most. But with that control comes complexity — and opportunity. The right strategy can help you reduce taxes, retain talent, and build long-term wealth.
You may be eligible to contribute to multiple plans—such as a Solo 401(k), SEP IRA, and even a defined benefit plan. This can dramatically increase your annual retirement savings, especially if your income is high and consistent. For example, if you have one business that has a 401K, you can maximize your contributions to that plan. If you have a single-member LLC, you can also maximize contributions to a SEP IRA.
The IRS has increased contribution limits again. In 2025, you can contribute up to $23,500 to a 401(k), with an additional $11,250 catch-up if you’re between 60 and 63. Employer contributions can bring total plan funding over $70,000 in some cases.
For those seeking even higher contributions, profit-sharing and defined benefit plans can allow six-figure annual contributions. These plans are especially attractive for owners nearing retirement who want to accelerate savings.
New businesses may qualify for tax credits for starting a retirement plan. Additionally, contributions are generally tax-deductible, reducing your current-year tax liability while building future security.
This story was produced by Comerica and reviewed and distributed by Stacker.
