The Best Sole Proprietorship Retirement Plans to Reduce Your 2024 Tax Bill
- Latoya J. Jessamy
- Mar 4
- 1 min read
Are you looking for ways to reduce your 2025 tax bill while securing your financial future? Then, setting up a self-employed retirement plan could be your solution.
You have several options that can provide significant tax savings, including the following:
SEP-IRA: It is simple to set up and allows contributions of up to $70,000 for 2025.
Keogh plan: This plan is similar to a SEP but allows borrowing from your account.
SIMPLE IRA: This is best suited for individuals with modest income levels, allowing contributions of up to $20,000 if you’re 50 or older.
Solo 401(k): This option offers the highest contribution limits, especially for those 50 or older, but involves more paperwork.
Each plan offers unique benefits tailored to your income and needs. Even better, you can still establish one of these plans and make deductible contributions for your 2024 tax return as long as you do so before the due date of the return, including extension.
