As a business owner, the business you have built may represent a significant portion of your net worth. Let us work together to help you grow and protect what you have worked so hard to build.
This is part of a series of posts to help business owners maximize the potential for their business.
Small Business Retirement Plans
- Does your business generate significant profits that you wish could be treated as tax deductible income?
- Do you want to save more for the future while reducing what you pay in taxes today?
Individuals and partners who own a small business have an incredible opportunity to increase the value of the owners through Small Business Retirement Plans. The Internal Revenue Code allows small business owners to legally leverage retirement plans to maximize the contributions they are making towards their own retirement. This can mean a greater share of profits being treated as tax deductible income, reducing what owners pay in tax in the current year.
- The Internal Revenue Code as of 2026 allows business owners to establish a Small Business Retirement Plan with generous contribution limits for owners:
- Defined Contribution Plans (for example 401(k) and profit-sharing plan)
- Under Age 50 – up to $72,000 in annual contributions per owner
- Age 50 or Older – up to $83,250 in annual contributions per owner (actual depends on your age)
- Defined Benefit Plans (for example, Cash Balance Plan)
- Contribution limits from $72,000 to over $300,000 per year depending on age and other factors.
- Defined Contribution Plans (for example 401(k) and profit-sharing plan)
Let Parable Wealth Advisors help you understand how you can leverage the profitability of your business to help you contribute toward your family’s future. Contact us to learn more information.
