How to Save for Retirement as a Small Business Owner

However, this doesn’t mean that retirement plans should not be taken into consideration while planning out your small business. It is important to plan for your entire future, just not the future that involves you working. 

Here are just a few ways you can save up for retirement as a small business owner. 

Set Up a Solo 401(k) 

While this retirement plan is more popular with full-time employees who were hired by a business, it can also be set up for self-employed individuals, like the owners of a small business. Solo 401(k)s can have potential tax benefits with pre-tax contributions. 

Automate Contributions 

Set up automatic transfers from your business into your retirement accounts to ensure consistent savings for your retirement fund. 

Build an Emergency Fund 

It is wise to save up some of your personal expenses over a period of time to avoid dipping into your retirement savings when times get tough. Aim to set aside money for at least half the year and deposit it directly into an emergency fund that should only be used in dire situations. Try to save as much of it as you can for retirement. 

Take Advantage of Tax Benefits 

To maximize contributions to tax-advantaged accounts, consult with a financial advisor. They can advise you on how to optimize your tax strategy while saving up for retirement. 

It can be overwhelming to think about retirement when starting your business. Thankfully, our team members at JTS Associates are here to guide you through the process. Contact us today at  (516) 877-5900 for more information.