I started saving for retirement at 35, thinking I was already behind. Then I discovered that small business owners have access to retirement plans with tax advantages that can catch me up faster than I ever imagined. Now I'm on track to retire comfortably — and I didn't need a financial advisor to get started.
If you're searching for "best retirement plans," "retirement planning near me," or "retirement financial advisor near me," you're probably wondering where to start. Retirement planning can feel overwhelming, especially for employees of small businesses or self-employed individuals who don't have access to corporate 401(k) plans. Here's the truth: there are retirement plans designed specifically for small businesses and individuals — with tax benefits, low fees, and flexibility that can help you build a secure future.
Retirement Plans for Small Business Employees and Owners
| Plan Type | Best For | Key Feature | Contribution Limits (2026) |
|---|---|---|---|
| 401(k) | Small businesses with employees | Highest contribution limits, employer matching possible | $23,500 ($31,000 if 50+) + employer contributions |
| Simplified Employee Pension (SEP) IRA | Self-employed or small business owners | Highest contribution limits, easy to set up | Lesser of 25% of compensation or $70,000 |
| Savings Incentive Match Plan for Employees (SIMPLE) IRA | Small businesses with 100 or fewer employees | Mandatory employer contributions, lower administrative costs | $16,000 ($19,500 if 50+) |
| Traditional IRA | Anyone with earned income | Tax-deductible contributions, tax-deferred growth | $7,000 ($8,000 if 50+) |
| Roth IRA | Anyone with earned income | Tax-free withdrawals in retirement | $7,000 ($8,000 if 50+) |
Small Business Retirement Plans: Which One Is Right for You?
| Plan Type | Pros | Cons | Best For |
|---|---|---|---|
| SEP IRA | High contribution limits, low paperwork, no annual filing requirements | Employer contributions only | Self-employed, solo business owners |
| SIMPLE IRA | Employees can contribute, employer matches, low costs | Mandatory employer contributions, lower limits than SEP | Small businesses with employees |
| Solo 401(k) | Highest limits (employee + employer), Roth option available | More paperwork, only available to owner-only businesses | Self-employed with no employees |
| Traditional 401(k) | High limits, employer matching, loans available | Higher costs, more administrative burden | Small businesses with employees and revenue |
Tax-Advantaged Accounts
For individuals without access to an employer-sponsored plan, IRAs and Roth IRAs are powerful tools:
- Traditional IRA offers tax-deductible contributions and tax-deferred growth.
- Roth IRA doesn't provide an immediate tax deduction, but withdrawals in retirement are tax-free.
- Bank of America IRA is an option for banking customers who want to manage their retirement savings alongside their checking and savings accounts.
Federal Retirement Plans and Policies
Federal employees have access to the Thrift Savings Plan (TSP), a defined contribution plan similar to a 401(k) with low fees and matching contributions. The federal retirement policy includes this benefit for government employees as part of their compensation package.
How to Get Started
- Determine your eligibility — What type of plan can you use? Self-employed, small business owner, employee?
- Calculate your retirement goal — Use a retirement calculator to estimate how much you need to save.
- Choose a plan — Consider contribution limits, tax benefits, and administrative costs.
- Open an account — Set up your plan through a bank, brokerage, or retirement plan provider.
- Contribute regularly — Automate your contributions to build wealth over time.
You don't need to be wealthy to start saving for retirement. Small business owners, self-employed individuals, and employees of small businesses have access to retirement plans with tax advantages that can help you build a secure future. Start today — your future self will thank you.
