Best Retirement Plan Options for a Solo-Owned C or S Corporation

April 2025

SCENARIO: You operate your business as a solely owned corporation. It can be a C or an S corporation. You are the only employee. But you’ve not yet had your corporation set up a retirement plan for yourself. Why not? You’re missing out on what could be significant annual tax deductions and a tax-favored retirement account for yourself. Thankfully, even now, in 2025, you can establish a plan that benefits your efforts.

Some of the best options include:

· SEP-IRA. Easy to set up and allows employer contributions of up to $70,000 for 2025

· Solo 401(k). Offers the highest contribution limits, with a combination of salary deferrals and employer contributions—up to $81,250 for 2025 if you qualify for super catch-up contributions.

· SIMPLE-IRA. A great choice for modest salaries, allowing employee deferrals and employer-matching contributions.

· Profit-sharing plan. Flexible employer contributions of up to 25 percent of salary, with loan options if needed.

Each of these plans comes with different benefits and administrative requirements, so choosing the right one depends on your salary level, cash flow, and long-term financial goals.

If you haven’t yet set up a retirement plan, there’s still time to act for the 2025 tax year, depending on the plan you choose.

If you want to discuss corporate retirement plans, please reach out to admin@strategicfinancialreporting.com