Only 13% of small business owners have a retirement plan in place, according to recent surveys. That’s a concerning statistic—especially given how much is at stake. Retirement planning for business owners is often overlooked, yet it’s a critical part of securing long-term financial success. As a business owner, you’re responsible not just for your company’s success, but also for your personal financial future.
Whether you’re based in Dallas, Plano, or anywhere across the U.S., retirement planning for business owners often falls to the bottom of the to-do list. But overlooking it means missing out on powerful tax-saving opportunities and long-term wealth growth.
The good news? There are several tax-advantaged retirement accounts designed specifically for business owners and self-employed professionals.
In this article, we’ll walk through the most effective options, how they work, and how to choose the right one for your financial goals.
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Why Retirement Planning for Business Owners Is Unique
Unlike employees, business owners must create their own retirement infrastructure while also managing cash flow, payroll, and tax obligations. This often leads to delayed retirement planning—or missed tax-saving opportunities.
Common roadblocks include:
- No access to an employer 401(k)
- Irregular income or reinvestment priorities
- Uncertainty about the right retirement account
Top Retirement Accounts for Business Owners
1. SEP IRA (Simplified Employee Pension)
A SEP IRA plan allows employers to contribute to traditional IRAs set up for employees. This is a popular choice for solopreneurs, consultants, and small business owners.
- Contributions up to 25% of compensation or $70,000 (2025 limit)
- Easy to set up and maintain
- Fully funded by the employer
- Tax-deductible for the business
Learn more about SEP IRAs from the IRS.
2. Solo 401(k)
A one-participant 401(k) plan – or a Solo 401(k) – is ideal for self-employed professionals with no full-time employees.
- Contribute as both employer and employee
- Total contributions up to $69,000 (or $76,500 if 50+)
- Option for Roth contributions and loan provisions
- More flexibility than a SEP IRA
Explore Solo 401(k) rules on the IRS website.
3. SIMPLE IRA
A SIMPLE IRA plan (Savings Incentive Match Plan for Employees) allows employers to contribute to transition IRAs set up for employees. It is great for small businesses with up to 100 employees.
- Easier and cheaper to manage than a 401(k)
- Requires employer contributions (match or nonelective)
- Lower limits than SEP or Solo 401(k), but still beneficial
See IRS SIMPLE IRA plan overview for more details.
4. Defined Benefit Plan
UA Defined Benefit Plan provides a fixed, pre-established benefit for employees at retirement. This is typically best for high-income earners in later stages of their career.
- Large, tax-deductible contributions based on age and income
- Ideal for Dallas-area professionals looking to catch up on retirement savings
- Higher complexity and maintenance costs
Learn about Defined Benefit Plans from the IRS.
Tax Strategy Tips for Texas Business Owners
When building your retirement plan, consider the tax advantages at both the contribution and distribution stages:
- Pre-tax contributions reduce your current taxable income
- Roth contributions allow for tax-free withdrawals later
- Use your plan to lower business taxable income in profitable years
- Layer plans (e.g., Solo 401(k) + Defined Benefit) for maximum benefit
Need help navigating these options? Our team at Beckley & Associates works with Dallas-area businesses to align retirement planning with executive compensation, cash flow strategy, and tax compliance.
Learn how to maximize benefits across compensation and retirement in our Executive Compensation Tax Planning Strategies post, and don’t miss our tips on Overlooked Small Business Tax Deductions for additional ways to reduce your tax bill.
Tax Strategy Tips for Texas Business Owners
Even with the best intentions, many business owners fall into common pitfalls when it comes to retirement planning. Here are some mistakes to watch for:
- Missing contribution deadlines
- Not adjusting plans as your income grows
- Choosing the wrong plan for your business size or staff
- Forgetting to coordinate with broader tax strategy
💡 Pro Tip: Partner with a CPA, like Beckley & Associates, or financial advisor who understands both your business and your personal financial goals. They can help structure a plan that grows with you and stays tax-efficient year over year.
Final Thoughts: Cash Flow Planning for Small Business
If you’re based in the Dallas–Fort Worth area, you don’t have to navigate retirement planning alone. At Beckley & Associates PLLC, we help local business owners develop personalized, tax-optimized financial plans.
Whether you’re a solopreneur in Plano, a consultant in Frisco, or a founder scaling a team in Dallas, we’ll help you:
- Choose the right retirement plan
- Reduce your current tax burden
- Maximize long-term savings
Ready to build your retirement strategy? Contact us today or schedule a consultation with one of our team.
For more resources for business owners → Visit our Small Business & Entrepreneur hub.
