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You've got options for retirement accounts as a business owner. More options than most W-2 employees will ever see. But most entrepreneurs either don't know what's available or they pick the easiest option without understanding what they're leaving on the table.

The retirement account you choose should match your business structure, your income level, and your long-term wealth goals. Not just what's convenient to set up. Here's how we're helping business owners think through their options.

Solo 401(k): Maximum Flexibility for Owner-Only Businesses

If it's just you, or you and your spouse working in the business, the Solo 401(k) is one of the most powerful tools available. You can put away up to $70,000 in 2026 if you're under 50, or $77,500 if you're 50 or older with catch-up contributions.

Here's how it works. You contribute in two ways: as the employee and as the employer. You can defer up to $23,500 of your salary as an employee contribution (or $31,000 with catch-up). Then, as the employer, you can add profit-sharing contributions of up to 25% of your W-2 compensation if you're an S-Corp, or about 20% of your net self-employment income if you're a sole proprietor or LLC. Combined, you hit that $70,000 limit.

My favorite part about the Solo 401(k) is the flexibility. You get the ability to make Roth contributions if you want to pay taxes now and grow tax-free later. You can also take advantage of mega backdoor Roth conversions if your plan allows after-tax contributions, which opens the door to sheltering even more money in a Roth account. And if you need access to capital, you can borrow from your Solo 401(k) without penalties, something you can't do with an IRA.

The downside? Once you hire your first employee who works more than 1,000 hours in a year, you'll need to transition to a full 401(k) plan with more administrative requirements. But until that happens, this is one of the cleanest ways to maximize contributions.

SEP IRA: Simple, But Limited

The SEP IRA is the easiest retirement account to set up and maintain. It's employer contributions only, which means you're not deferring salary like you would with a 401(k). Instead, you're making profit-sharing contributions of up to 25% of your compensation, with a maximum contribution of $70,000 in 2026.

For a solo entrepreneur or a business owner who wants something straightforward with minimal paperwork, the SEP IRA works. You can open one, fund it, and manage it with very little overhead. And here's a planning advantage: you can still fund your SEP IRA for your 2025 taxes all the way up until your tax filing deadline, including extensions. That gives you flexibility if you're making last-minute tax moves in April or even October.

The catch? If you have employees who meet the eligibility requirements (generally age 21, worked three of the last five years, and earned at least $750 in 2025), you're required to contribute the same percentage of compensation for everyone. If you contribute 10% of your income to your SEP IRA, you have to contribute 10% for every eligible employee. That gets expensive fast if you have a team.

So the SEP IRA is best for businesses with no employees or very few employees where the cost of contributions is manageable. Otherwise, you're subsidizing everyone's retirement at the same rate as your own.

Cash Balance Plan: For High Earners Who Want More

If you're a high earner who's already maxing out a Solo 401(k) or SEP IRA and you want to shelter significantly more income, the Cash Balance Plan is the next level. This is a defined benefit plan that allows you to contribute $100,000 to $300,000 or more annually, depending on your age and income.

Cash Balance Plans are designed to favor older, higher-earning business owners. The closer you are to retirement, the more you can contribute because the plan is calculating how much you need to set aside today to reach a specific benefit at retirement. If you're 55 and making $500,000, you might be able to shelter $250,000 a year. If you're 35 and making the same amount, your contribution limit will be significantly lower.

The trade-off is complexity. Cash Balance Plans require actuarial calculations, annual filings, and ongoing administration. You're looking at higher costs to set up and maintain compared to a Solo 401(k) or SEP IRA. But if you're in a position where saving $200,000 a year in a tax-deferred account makes sense, the cost is worth it.

You can also combine a Cash Balance Plan with a Solo 401(k), allowing you to maximize contributions across both accounts. That's a strategy we use for clients who have the income to support it and want to aggressively reduce their taxable income while building serious wealth for retirement.

Match the Account to Your Situation

The mistake most business owners make is choosing a retirement account based on convenience rather than strategy. They hear "SEP IRA is easy" and set one up without considering whether a Solo 401(k) would give them more flexibility. Or they max out a Solo 401(k) and don't realize they could be sheltering another $150,000 with a Cash Balance Plan.

Your retirement account isn't just about saving for the future. It's a tax strategy. It's a wealth-building tool. And it should fit the structure of your business, the level of income you're generating, and the timeline you're working with.

If you're a solo entrepreneur or working only with your spouse, start with the Solo 401(k). If you want simplicity and minimal administration, the SEP IRA works. If you're a high earner looking to shelter six figures annually, explore the Cash Balance Plan. And if you're not sure which one fits, that's exactly the kind of planning conversation you should be having with your advisor.

That's how you Own Your Revenue.

Disclosures: This content is provided for educational and informational purposes only and does not constitute financial, tax, or legal advice. Retirement account decisions should be made in consultation with qualified financial and tax professionals who understand your specific situation. Contribution limits, eligibility requirements, and tax treatment are subject to change based on IRS regulations. WIN Private Wealth is a registered investment adviser. Advisory services are only offered to clients or prospective clients where WIN Private Wealth and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by WIN Private Wealth unless a client service agreement is in place.