Self-Employed? Here’s the SEP-cret to Slashing Taxes and Saving Big

Tyler sat across the desk with his eyes wide. “You’re telling me I can contribute $35,000 to my retirement, take a full deduction, and not have to hire a single employee to do it?”

His accountant smiled. “That’s exactly what I’m saying. And the best part? It’s completely legal, totally IRS-approved, and built specifically for business owners like you.”

Like most entrepreneurs, Tyler had been so focused on running his business, he never stopped to build a system for keeping more of what he earned.

He’d heard of 401(k)s, maybe even IRAs. But no one had told him about the Simplified Employee Pension Plan, the SEP IRA, a little-known tax-saving tool that lets business owners put thousands away for their future and cut this year’s tax bill in the process.

Here's the truth:

Most business owners think retirement planning is either:

• Too complicated, or

• Only for later.

But what if there was a tool that allowed you to:

• Contribute up to $70,000 per year to your future,

• Write it off as a business expense, and

• Build a tax-deferred wealth strategy on your own terms?

That’s the SEP IRA.

And if you’re not using it, you could be overpaying the government by tens of thousands, every single year.

In this guide, we’ll break down: 

• What a SEP IRA actually is (in plain English)

• How it works for solopreneurs, LLCs, and S Corps

• Who qualifies (and who should avoid it)

• The real tax savings you can unlock

• Common pitfalls to avoid

• And how to get started, without overcomplicating it

Because building wealth shouldn’t be hard.
It should be automatic, strategic, and tax-smart.

Let’s get into it.

What Is a SEP IRA (In Plain English)?

Let’s cut through the confusion.

A SEP IRA or Simplified Employee Pension Individual Retirement Arrangement, is a tax-deferred retirement account designed specifically for:

• Self-employed individuals,

• Small business owners, and

• Entrepreneurs with a few (or no) employees.

It’s designed to be simple, flexible, and incredibly efficient especially if you want big tax savings without the red tape of more complex plans like 401(k)s. You can set it up quickly, fund it on your own schedule, and deduct your contributions directly from your business income.

SEP IRA: Think of it like a "Super IRA" for Business Owners

Most people are familiar with the Traditional IRA, which lets you contribute up to $7,000 per year ($8,000 if you’re over 50). That’s decent, but it doesn’t move the needle for business owners with higher incomes.

A SEP IRA, on the other hand, allows you to contribute up to 25% of your compensation, up to a maximum of $69,000 in 2024. And every dollar is tax-deductible to your business.

That means:

• The money you contribute reduces your business’s taxable income this year

• It grows tax-deferred inside the account

• And you don’t pay tax until you withdraw in retirement (when your tax bracket may be lower)

Why It Exists

Congress created the SEP IRA to help small business owners save for retirement without all the red tape of 401(k)s.

• No annual compliance testing

• No required employer match formulas

• No complicated paperwork

• Just one form (IRS Form 5305-SEP) and a straightforward structure

Simple Structure, Serious Power

Bottom Line:

The SEP IRA is one of the best-kept secrets in the tax code and it’s hiding in plain sight.

If you’re self-employed or own a small business, this tool lets you:

• Slash your taxes now

• Grow your wealth for retirement

• Keep full control over how and when you contribute

In short: it’s a business deduction today, and a wealth builder for tomorrow all wrapped into one smart, simple strategy.

And if you’re self-employed or own an S-Corp or LLC?

This tool could put tens of thousands of dollars a year back in your pocket and into your future.

How a SEP IRA Helps Save Money (Now and Later)

Most retirement accounts ask you to wait for decades to see the benefit. But with a SEP IRA, you don’t just play the long game; you start winning immediately. This is one of the few financial tools that gives you a double win: instant tax relief and long-term wealth creation.

Here’s how the math and the strategy works in your favor:

Short-Term: Slash This Year’s Tax Bill

When you contribute to a SEP IRA, your business gets to deduct the full amount from its taxable income. This means less of your hard-earned profit goes to the IRS and more stays in your business or gets funneled into your personal financial future. It’s one of the cleanest and most effective ways to slash your tax bill, legally and strategically.

Here’s how it plays out:

• Let’s say your S-Corp pays you $120,000 in W-2 wages.

• You contribute 25% to your SEP IRA = $30,000.

• That contribution is a fully deductible business expense.

If you’re in a 32% federal tax bracket:

$30,000 × 32% = $9,600 saved in taxes immediately.

That’s not a delayed benefit. That’s $9,600 you keep in your pocket this year, instead of handing it over to the IRS.

Think of it like turning tax dollars into future retirement dollars on your own terms.

Long-Term: Build Massive Wealth Tax-Deferred

Once you contribute to the SEP IRA, your money goes to work.

You choose how it’s invested whether that’s index funds, ETFs, mutual funds, or individual stocks. From there, it grows tax-deferred, meaning you don’t owe a single cent in taxes on the gains until you begin withdrawing in retirement.

This tax deferral supercharges compound growth.

Example:

• You contribute $30,000 per year for 10 years.

• You earn an average 8% annual return.

• Your account could grow to over $450,000 with no taxes paid on that growth until retirement.

And here’s what makes that even more powerful:

• You funded it with pre-tax business dollars.

• You took a massive deduction up front.

• You maintained control over the entire investment process.

Why It Matters for Business Owners:

You don’t have a built-in retirement plan as a business owner you are the plan. That’s why the SEP IRA is so powerful: it lets you use business profits to create long-term personal wealth. Instead of paying the IRS, you’re paying yourself.

It also gives you flexibility. You can contribute big in profitable years and scale back in lean ones, all while keeping compliance simple and administration minimal.

Bottom Line:

A SEP IRA gives you a rare two-for-one advantage:

• Immediate tax savings that free up real cash

• Tax-deferred retirement growth that compounds quietly over time

Whether you’re contributing $5,000 or the full $70,000, the benefits scale with your business. Every dollar works twice: once to reduce taxes, and again to grow your future wealth.

This is what smart business ownership looks like:
Save now. Build later. Win twice.

Who Can Use a SEP IRA (And How It Works with Employees)

One of the greatest strengths of the SEP IRA is its flexibility. It’s tailor-made for business owners, but there are a few critical distinctions to understand depending on how your business is structured and whether or not you have employees.

Let’s keep it simple.

 If You’re a Solopreneur or Single-Member LLC:

 This is where the SEP IRA really shines. If you’re running a one-person show, there’s virtually no administrative hassle.

You can contribute up to 25% of your net self-employment income (after deducting half of your self-employment tax), and you’re the only participant in the plan.

Highlights for solopreneurs:

• No employees = no employee contribution rules to worry about

• Contributions are fully deductible as a business expense

• No payroll or W-2 required, just net business income

Ideal for:

• Freelancers and consultants

• 1099 contractors

• Real estate professionals

• Single-member LLCs with no staff

If You Own an S-Corp or Multi-Member LLC:

The SEP IRA still works great, but the way contributions are calculated shifts slightly. Instead of net business income, you calculate the allowable contribution based on your W-2 wages.

Let’s say you pay yourself $100,000 through your S-Corp. You can contribute up to $25,000 (25% of wages) to your SEP IRA.

Things to consider:

• Contributions must be based on W-2 wages, not distributions

• The contribution is still 100% deductible by your business

• How much W-2 you pay yourself impacts your contribution room

Pro Tip: Strategic compensation planning is key. The right W-2 amount can open the door to bigger SEP contributions and bigger deductions.

If You Have Employees: Know These Rules

The SEP IRA is simple… until you have employees.
Then the IRS requires a few key things:

Example: If you contribute 15% of your own salary into your SEP, you must contribute 15% for each eligible employee’s salary too.

 What This Means Strategically:

The more employees you have, the more important it is to evaluate whether a SEP IRA is the best fit. Here’s how to think about it:

SEP IRAs are best when:

• You have no employees or only a couple part-timers

• You want maximum contribution and minimal complexity

• You need flexibility in contribution amounts year to year

Consider alternatives like a Solo 401(k) if:

• You want to exclude certain employees

• You want to avoid mandatory matching

• You need Roth or loan options

Bottom Line:

 SEP IRAs work beautifully for:

• Solopreneurs

• Consultants

• S-Corp owners with no (or very few) eligible employees

But if you're building a larger team or want more control over who gets what, you’ll want to plan ahead or explore more customizable options.

How to Set Up and Fund a SEP IRA (Step-by-Step)

One of the best things about a SEP IRA? It’s not just powerful it’s painless to set up. Unlike traditional 401(k) plans or other retirement tools that require complex filings and plan documents, a SEP IRA can be launched in a single afternoon.

And once it’s up and running, it becomes a tax-saving engine for your business offering immediate deductions today while building a secure, tax-deferred nest egg for the future.

Here’s exactly how to get started:

Step 1: Choose a SEP IRA Provider

Your first move is picking a provider that offers low fees, ease of use, and solid investment options. You’ll want to make sure the platform aligns with your investing style (hands-off index funds vs. active trading) and that it integrates easily with your business banking.

Look for a provider that offers:

• No setup or maintenance fees

• Easy online access

• Access to low-cost index funds or ETFs

Recommended custodians:

• Fidelity

• Schwab

• Vanguard

• E*Trade

Pro Tip: Don’t overthink this step. Just choose a provider with good reviews and simple options. Getting started is what matters most.

 Step 2: Complete IRS Form 5305-SEP

This is your official plan adoption document. It outlines the rules and structure of your SEP IRA. The good news? You don’t file this form with the IRS, you just complete it and keep it in your records.

Here’s what you need to know:

• Most custodians will auto-generate and complete Form 5305-SEP during account setup.

• If you have employees, this form includes the language requiring equal percentage contributions to all eligible team members.

• Keeping a signed copy in your tax records is a smart move for future audit protect

Step 3: Open the Account Online

With your provider selected and plan document in place, it’s time to officially open your SEP IRA.

You’ll typically need to provide:

• Your business name and structure (LLC, S-Corp, etc.)

• Your business EIN (Employer Identification Number)

• Your contact info and banking information

Most account setups take 15–30 minutes and can be completed entirely online.

 Step 4: Fund Your SEP IRA

This is where your tax savings become real. Contributions can be made at any time, but to claim the deduction for a specific tax year, you must fund the account before your business tax return deadline (including extensions).

• You can contribute anytime before your tax deadline (including extensions!)

  • For 2025, that means as late as October 15, 2026, if you file an extension.

• Contribution limit: Up to 25% of compensation, up to a max of $70,000 in 2025.

Example:

• S-Corp pays you $120,000 in W-2 wages

• Max SEP contribution = 25% → $30,000
  

• Fully deductible by the business

Step 5: Track and Report Contributions

You’re not required to file any additional forms with the IRS specifically for the SEP IRA each year, but good documentation is essential for clean bookkeeping and audit readiness.

Here’s what you should do:

• Record SEP contributions in your business books as a retirement expense

• Make sure your CPA includes it correctly on your tax return:

  • Schedule C (if you’re a sole proprietor)

  • Form 1120-S (if you’re an S-Corp)

  • Form 1065 + K-1 (if you’re a partnership)

• Watch for Form 5498 from your IRA custodian the following May, it shows your total contribution and is important for your records

Audit-Proof Tip: Create a dedicated “SEP IRA Folder” with your plan document, account statements, contribution receipts, and Form 5498s. Review it each year during tax prep.

Bottom Line:

Setting up and funding a SEP IRA is one of the most efficient, impactful moves you can make as a business owner. It’s:

• Simple to start

• Flexible to fund

• Powerful for taxes and wealth-building

Whether you’re contributing $5,000 or $50,000, the benefits compound fast and you stay in full control the entire time.

Audit Protection and IRS Compliance

The SEP IRA is one of the most IRS-friendly tools available to business owners but like any tax-advantaged account, the benefits come with a responsibility to keep your documentation tight and your process consistent.

The good news? Compliance doesn’t have to be complicated. With just a few key best practices, you can eliminate most audit risks and ensure your tax savings are protected for the long haul.

Let’s make it simple:

What the IRS Needs to See (And How to Keep It Clean)

Tip: Keep a dedicated "SEP IRA Documentation Folder" (digital and/or physical). Review and update it annually during tax prep.

How to Stay 100% IRS-Compliant

For Sole Proprietors or LLCs:

For sole proprietors and single-member LLCs, SEP IRA compliance is refreshingly straightforward. You report your contributions directly on Schedule C, the same form you use to list your income and expenses. Since you don’t have “wages” in the traditional sense, your maximum contribution is based on your net self-employment income after deducting half of your self-employment tax.

This deduction directly lowers both your income taxes and your self-employment taxes, making it a double win. Just remember, your gross income isn’t your contribution base, the IRS wants your net number, which means calculating your self-employment tax deduction correctly.

• Example: If you earn $100,000 in net profit, your contribution limit (after SE tax adjustment) would be approximately $23,000.

• The SEP contribution shows up as a business expense on Schedule C, reducing your overall taxable income.

For S-Corps:

With an S-Corp, the structure adds flexibility but also complexity. Unlike sole proprietors, S-Corp owners must pay themselves a reasonable W-2 salary, and SEP IRA contributions are based solely on that salary not on distributions or overall company profit.

You report the SEP contribution on Form 1120-S, under “compensation of officers” or “employee benefit programs.” The business gets the full deduction, but only if contributions are based on actual W-2 wages.

This makes your payroll strategy critically important. Pay yourself too little in wages, and you reduce how much you can contribute to your SEP. Pay yourself too much, and you might increase payroll taxes unnecessarily. The key is finding the strategic sweet spot.

• Example: Paying yourself $120,000 in wages allows for a max SEP contribution of $30,000.

• That $30,000 is fully deductible to the business and grows tax-deferred for your retirement. 

Partnerships & Multi-Member LLCs

If you operate as a partnership or multi-member LLC, SEP contributions are made by the business but allocated to each partner individually. The partnership deducts the total contribution on Form 1065, and then each partner’s share is reported on their K-1.

Here’s where it gets a little nuanced: partners don’t take the deduction on their personal tax return. Instead, it’s reflected in the net income passed through on the K-1. Like sole proprietors, contributions are calculated on net earnings from self-employment, adjusted for the self-employment tax deduction.

• Each partner’s allowable SEP contribution is based on their share of the partnership income.

• It’s essential to track these calculations carefully to ensure compliance and maximize the deduction.

Bonus: Contributions for prior tax year are valid up to your extended filing deadline

Common SEP IRA Audit Red Flags (And How to Avoid Them)

Pro Tip: Backdoor Roth Conversions Involving SEP IRAs

If you have existing SEP IRA balances and try to do a Backdoor Roth IRA, the IRS will trigger the pro-rata rule, potentially creating unexpected taxable income.

 Strategy:

• Roll your SEP into a Solo 401(k) first (if available)

• Then execute the Backdoor Roth IRA from a zero-balance Traditional IRA

Ask your tax strategist to help if you're planning this move.

Bottom Line:

 SEP IRAs are not high-risk, but they must be set up, funded, and documented intentionally.
Keep your paperwork tight, your employee rules clear, and your contributions within limits and you’ll sleep easy at tax time.

Tax savings are great.
Keeping them is better.

SEP IRA vs. SIMPLE IRA vs. Solo 401(k): Which One’s Right for You?

If you're a business owner trying to build wealth and reduce taxes, chances are you've asked the same question we hear from clients all the time:

“Is the SEP IRA really my best option or am I leaving money on the table?”

The short answer: It depends. Your business structure, income level, number of employees, and your appetite for administrative complexity all play a role in choosing the best retirement plan.

Let’s simplify the landscape by comparing the three most common options available to solopreneurs and small business owners: SEP IRA, SIMPLE IRA, and Solo 401(k).

Let’s break down the three most popular options for entrepreneurs and solopreneurs in plain English:

Quick Comparison Table

 When a SEP IRA Makes the Most Sense

A SEP IRA is a standout choice for business owners looking for a retirement solution that’s high on impact and low on hassle. It’s particularly powerful when you don’t have a large team or any team at all and want a plan that’s easy to manage but delivers substantial tax benefits.

You’re a great candidate for a SEP IRA if:

• You’re self-employed, a freelancer, or a single-member LLC with no employees.

• You own an S-Corp and want to maximize your contribution by strategically adjusting your W-2 wages.

• You have fluctuating income and want the flexibility to skip contributions in low-income years without penalty.

• You prefer a plan where only employer contributions are required (no employee deferrals or payroll withholdings).

• You value simplicity, there’s no annual IRS filing or complex administrative compliance.

SEP IRAs are especially well-suited for:

• S-Corp owners who can structure their salary to optimize deductions.

• 1099 contractors, consultants, and real estate professionals with variable income who still want to save aggressively for retirement.

• Business owners who want a “set-it-and-deduct-it” approach with contributions treated as business expenses.

Because SEP IRAs don’t require employee salary deferrals and vesting schedules, they provide an uncomplicated, high-ceiling strategy for retirement savings, especially when your team is small or non-existent.

When You Might Want to Consider a Solo 401(k)

If you want to go beyond what a SEP IRA offers particularly if you’re a high saver or want more customization a Solo 401(k) might be a better fit.

Consider a Solo 401(k) if:

• You want to maximize contributions at lower income levels by contributing as both employee and employer.

• You’re interested in Roth contributions for tax-free growth (SEP IRAs are pre-tax only).

• You want the option to borrow from your retirement account through participant loans.

• You’re planning to use the Backdoor Roth IRA strategy and want to avoid triggering the IRS’s pro-rata rule (having pre-tax SEP balances complicates this).

The trade-off is complexity Solo 401(k)s come with more setup and administrative responsibility, especially after assets exceed $250,000 (you’ll need to file Form 5500-EZ). But for those willing to take on the extra work, the tax and savings flexibility can be unmatched.

When SIMPLE IRAs Fit (Though Less Often)

SIMPLE IRAs fill a specific niche in the retirement planning world. They’re best for small businesses that:

• Have employees and want a low-cost, low-admin retirement plan with required contributions.

• Prefer a structure where employees contribute directly from their paychecks, giving them skin in the game.

• Aren’t quite ready to handle the responsibilities of a full-blown 401(k), but still want to offer retirement benefits.

However, SIMPLE IRAs come with drawbacks: lower contribution limits than SEP or Solo 401(k) plans, mandatory matching or fixed contributions, and fewer customization options. For solopreneurs or S-Corp owners with minimal or no team, a SEP or Solo 401(k) usually offers more flexibility and value.

Bottom Line:

 If you're a solopreneur or high-profit S-Corp owner without employees:

•  SEP IRA is a home run

 If you want to contribute aggressively, use Roth options, and maintain total control:

• Solo 401(k) might be the move, especially for long-term wealth builders

 If you’ve got a small team and want a modest, mandatory employee plan:

• SIMPLE IRA could work, but plan the contribution impact carefully

Common Mistakes to Avoid with SEP IRAs

The SEP IRA is one of the most powerful tax tools available to business owners. It's simple, flexible, and generous in terms of contribution limits. But simple doesn’t mean foolproof. Each year, we see well-meaning entrepreneurs unknowingly make avoidable mistakes, some of which trigger IRS penalties, cost them deductions, or disqualify the plan altogether. The good news? Every one of these missteps can be prevented with a bit of foresight and structure.

1. Miscalculating Your Contribution Limit

It’s easy to assume that SEP contributions follow a flat dollar amount like a Roth or Traditional IRA, but they don’t. SEP limits are percentage-based and tied directly to your type of business income. If you’re not careful, you could contribute too much without realizing it, setting off red flags with the IRS.

• Mistake: Exceeding the annual contribution limit (25% of eligible compensation, up to $69,000 in 2024).

• Risk: Extra contributions can be subject to a 6% excise tax each year they're not corrected, plus double taxation when withdrawn.

• Avoid It: Understand that for S-Corp owners, SEP contributions are based only on W-2 wages, not distributions. For sole proprietors and single-member LLCs, they’re calculated from net self-employment income after deducting half of the self-employment tax. Use worksheets or work with a CPA to confirm before funding.

2. Overlooking Eligible Employees

If your business has employees even just part-time, you must apply SEP contributions fairly. The IRS is crystal clear: eligible employees must receive the same percentage of compensation that you give yourself. Failing to do this, even by accident, is one of the fastest ways to lose audit protection.

• Mistake: Ignoring or forgetting to fund SEP contributions for employees who meet IRS eligibility criteria.

• Risk: The IRS can disqualify your entire SEP plan, demand back contributions for employees, and assess penalties and interest.

• Avoid It: Each year, verify which employees are eligible: age 21+, earned $750+, and worked in 3 of the last 5 years. Document your process, and when in doubt, ask your tax advisor before funding.

3. Missing the Contribution Deadline

Many entrepreneurs assume they’ve missed the boat on retirement contributions once the calendar year closes. But with a SEP IRA, you actually have until your tax return deadline including extensions to make contributions for the previous year. Missing that window, however, eliminates both your deduction and your opportunity for tax-free growth.

• Mistake: Forgetting to contribute before the IRS deadline.

• Risk: You lose the tax deduction for that year, and your intended contribution doesn’t count.

• Avoid It: Mark your calendar: For 2024 tax year contributions, your deadline is April 15, 2025 (or October 15, 2025, if you file an extension). Build SEP funding into your tax prep checklist so you’re not scrambling last minute.

4. Confusing SEP IRAs with Traditional IRAs

There’s often confusion between SEP IRAs and Traditional or Roth IRAs. Though they sound similar, they have separate contribution limits, tax treatment, and reporting processes. Many business owners mistakenly believe they can’t fund both, which leads to missed savings opportunities.

• Mistake: Assuming your SEP IRA contributions count against your personal IRA limit ($7,000 or $8,000 if over 50).

• Risk: This confusion can lead to underfunding your retirement or misreporting on your tax return.

• Avoid It: SEP IRAs are considered employer contributions and do not interfere with your eligibility to fund a Traditional or Roth IRA (if your income qualifies). You can often use both strategies in tandem for maximum retirement acceleration.

5. Misreporting Contributions on Your Tax Return

One of the most painful ways to lose your deduction is also one of the simplest to avoid failing to report your SEP IRA contribution correctly. Because contributions come from the business and not your personal income, the deduction must be claimed in the right place and tied to the correct entity.

• Mistake: Not informing your tax preparer about SEP contributions, or reporting them on the wrong line or form.

• Risk: You lose the deduction or trigger an IRS mismatch flag, potentially leading to an audit or correction letter.

• Avoid It: Track your contributions and keep clear documentation (bank transfers, Form 5305-SEP, and Form 5498). For sole props, report on Schedule C. For S-Corps, report on Form 1120-S. For partnerships, contributions are allocated via Form 1065 and the K-1s.

Bottom Line

SEP IRAs are among the easiest and most rewarding retirement strategies for small business owners, but you have to respect the rules. By understanding where most business owners slip up, you can proactively protect your deductions, avoid penalties, and ensure every dollar you contribute is working hard for your future not triggering unnecessary IRS scrutiny.

Being strategic means more than just making the contribution. It means making it count.

Real-World Use Case: The $220-per-$1,000 Strategy

Numbers mean more when they’re personal. So let’s get practical and show you exactly how a SEP IRA doesn’t just look good on paper, it puts money in your pocket today, and builds a serious nest egg for tomorrow.

Here’s the reality: every $1,000 you contribute to a SEP IRA could slash your tax bill by roughly $220. That’s not a coupon code or a tax theory. That’s straight-up IRS-approved savings for entrepreneurs using the system the way Congress designed it.

Meet Amanda: A Profitable S-Corp Owner

Amanda runs a successful design agency. After a few years of reinvesting everything back into the business, she’s finally hit her stride. She’s paying herself a reasonable salary of $100,000 via W-2 wages from her S-Corp. Her business is thriving, and taxes are starting to bite.

Rather than continuing to overpay the IRS, Amanda decides it’s time to fund her future and cut her tax bill at the same time. She sets up a SEP IRA through her business and contributes 25% of her W-2 wages.

• Her SEP IRA Contribution:
  $100,000 × 25% = $25,000
  (All deductible as a business expense.)

• Tax Savings (Assuming a 32% Federal Bracket):
  $25,000 × 32% = $8,000 saved in taxes this year

So for every $1,000 Amanda contributed to her SEP IRA, she saved $320 in taxes, a higher than average scenario. Even if your bracket is closer to 22%, the rule of thumb still holds: every $1,000 = $220+ in real tax savings.

Immediate Results:

• She moves $25,000 from her business to her future.

• She pays $8,000 less in federal taxes.

• She keeps control of the investment.

• Her money now grows without annual tax drag.

Long-Term Growth: Quiet Wealth That Compounds

Now let’s fast-forward. Amanda keeps contributing $25,000 a year for 10 years and invests in a diversified, low-cost index fund averaging 8% returns. No drama, no market timing just consistent deposits and long-term thinking.

And don’t forget during that same time, Amanda saved roughly $80,000 in taxes from those annual contributions. That’s money she reinvested in growth, hiring, or just kept in her pocket.

Stacking the Strategy: Taking It Further

Amanda doesn’t stop there. Once she’s mastered the SEP play, she adds even more power:

• Roth IRA contributions to build tax-free wealth alongside her SEP’s tax-deferred growth

• Backdoor Roth strategies when her income grows past direct Roth eligibility

• Solo 401(k) upgrades when she wants Roth options or more flexibility

• Exit strategy planning using SEP contributions to reduce taxes in her final high-income years before selling the business

Bottom Line:

The SEP IRA isn’t just a smart savings tool, it’s a strategic transfer system. It shifts money out of taxable space and into tax-favored territory. You reduce your tax bill today and build massive momentum for your future.

This is how real business owners take control of their taxes and compound their profits into long-term wealth. Whether you’re starting with $5,000 or maxing out at $69,000, the math works and the freedom grows.

Final Thoughts: Build Wealth While You Reduce Taxes

As a business owner, you take all the risks.
You build the team. You generate the sales. You solve the problems.

But when it comes to keeping your profits?

 The IRS has no problem stepping in to take a big chunk unless you have a plan.

A SEP IRA gives you that plan.

• It’s legal.

• It’s simple.

• And it works.

You’re not just saving for retirement, you’re taking control of your financial future while reducing your tax bill today.

Here’s the Bottom Line:

• A SEP IRA can help you contribute up to $69,000 per year.

• You get a 100% business deduction on that contribution.

• Your money grows tax-deferred for years, without IRS interference.

• And setup takes less than an hour.

Whether you’re contributing $5K or $50K, the system works.
You just have to start.

At Make Taxes Fair, we believe entrepreneurs should keep more of what they earn because you’ll do more with your money than the government ever will.

So don’t wait for permission.
Don’t wait for “someday.”
Take one step today to turn your business profits into long-term wealth and make overpaying the IRS a thing of the past.

Now it's time to take action. If you have any questions, reach out and start a conversation