Small Business Tax Savings Podcast The #1 Retirement Mistake Business Owners Make (And How to Fix It)
Jul 30, 2025
Matt Ruttenberg, a retirement expert from Life, Inc., shares his insights on the key retirement mistakes business owners make. He illustrates five real-world scenarios, highlighting the best retirement plans like IRAs, SEP, and Solo 401(k)s suited for varying savings goals. Ruttenberg emphasizes the importance of strategic planning to attract and retain talent through employee retirement plans. He also discusses exciting new tax credits available in 2023 that can alleviate administrative costs, ensuring business owners maximize their retirement benefits.
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Start Small with an IRA
- If you're saving under $7,000 a year and have no employees, a traditional or Roth IRA is enough.
- Avoid complicating the process with business retirement plans when an IRA suffices for tax benefits.
Choosing SEP or SIMPLE IRAs
- For solo business owners saving around $12,000 a year, consider SEP or SIMPLE IRAs based on business type and income.
- Remember, SIMPLE IRAs can be established without employees and spousal IRAs provide additional options.
Maximize Solo Retirement Savings
- For solo owners wanting to save $25,000+, a Solo 401(k) offers higher contribution limits and flexibility.
- SEP IRAs cap contributions at 25% of salary, while Solo 401(k)s combine employee and profit sharing contributions for up to $70,000.