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Running a business is basically a full-time job plus overtime, weekends, and the occasional 2 AM stress spiral. So yeah, thinking about retirement? It probably feels like a “someday” problem. But here’s the thing—“someday” sneaks up real fast. The good news? If you’ve got an LLC, retirement plans aren’t just for the big corporate guys. LLC retirement plans can actually help you build wealth and shrink your tax bill at the same time.

Let’s break it down and find the plan that fits your biz—and your future.

1. IRA (Traditional & Roth): The Easy Starter Pack

IRAs (Individual Retirement Accounts) can be considered low-maintenance and tax-friendly—perfect if you’re just getting started with retirement savings.  

– Traditional IRA: Contributions are tax-deductible now, but you’ll pay taxes on withdrawals in retirement.  

– Roth IRA: You pay taxes upfront, but when you retire, your withdrawals are 100% tax-free (hello, future savings!).  

How much can you contribute in 2025?

✅ Under 50: Up to $7,000 

✅ 50+ years old: Up to $8,000

⚠️ Income Limits for Roth IRAs: 

If you make over $230,000 (married filing jointly) or $146,000 (single), you won’t be eligible for a Roth IRA.  

🚨 Penalty Alert: Taking money out before age 59 ½? Expect a 10% penalty, unless you qualify for an exception.  

2. SEP IRA: The No-Fuss Option for Solo Business Owners

If you’re self-employed or own a small business with no (or very few) employees, a SEP IRA lets you save big while keeping things simple.  

– Contribute up to $69,000 in 2024 (or 25% of your net earnings—whichever is lower).  

– Contributions are tax-deductible, lowering your taxable income.  

– No employees? You’re all set. But if you do have employees, you must contribute to their accounts too.  

3. SIMPLE IRA: For Business Owners With Employees 

If you have a small team (less than 100 employees), a SIMPLE IRA might be your best bet.  

– No startup costs or complicated paperwork.  

– You must contribute either:  

  ✅ A matching contribution (up to 3% of an employee’s salary), OR  

  ✅ A flat 2% contribution (even if employees don’t contribute).  

– For 2024, you can contribute up to $16,000 to your own SIMPLE IRA.  

The catch? 

Early withdrawals = 10% penalty (or 25% if you withdraw within the first 2 years).  

4. Solo 401(k): The Best Option for High Earners

If you’re self-employed (or work with your spouse), a Solo 401(k) lets you maximize your retirement savings.  

– You contribute as both employer & employee—meaning bigger tax breaks.  

– In 2024, the total contribution limit was $69,000 ($76,500 if 50+).  

– Unlike a SEP IRA, you can choose a Roth option for tax-free withdrawals later.  

🚨 Not eligible if you have employees (other than your spouse). 

So now to the question you’re dying to ask…

Which LLC Retirement Plan Should You Pick?

Here are our thoughts. But honestly, it’s up to you!   

✅ Just starting out?→ Traditional or Roth IRA  

✅ Self-employed & want big tax savings? → SEP IRA or Solo 401(k)  

✅ Have employees?→ SIMPLE IRA  

Retirement might feel like a later problem, but the earlier you start, the more money future-you gets to enjoy. And let’s be real—you deserve a beachside margarita in your golden years, not a financial stress headache.  

Need help choosing the right LLC retirement plan? Let’s chat.