Masters in Business At The Money: How to Max Out Your Small Business Retirement Plan
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Apr 29, 2026 
Dan LaRosa, Director of Corporate Retirement Plans at Ritholtz Wealth Management and retirement-plan specialist, breaks down small-business retirement options. He compares SEP IRAs and solo 401(k)s. He explains contribution limits, spouse strategies to boost household savings, compliance pitfalls like Form 5500, and trade-offs between flexibility and Roth access.
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Main Small Business Retirement Options
- Solo retirement options for small business owners are primarily SEP IRAs and solo 401(k)s with mega backdoor Roth becoming popular.
- Dan LaRosa explains SEP is simpler, solo 401(k) offers more flexibility and Roth capability which drives recent adoption.
Each Plan Has Its Own $72,000 Limit
- Each separate retirement plan has its own $72,000 total contribution limit but the $22,500 employee deferral aggregates across plans.
- Dan notes you can add another plan for a side gig to potentially contribute an additional plan-level $72,000 if income allows.
Pick Plans Based On Income And Roth Desire
- Choose the vehicle by income and goals: SEP for consistently high income, solo 401(k) for lower or variable income, and solo K with mega backdoor Roth to prioritize Roth savings.
- Dan gives examples: SEP needs ~ $360k income to hit $72k via 20% employer contribution; solo K needs ~ $235–240k.