Sample client recommendations.
Solo 401(k) Maximization for Self-Employed
Establish a Solo 401(k) for self-employed individuals: If you're self-employed or have a side business, set up a Solo 401(k) to maximize your retirement savings. This type of plan allows for higher contribution limits compared to traditional IRAs or SEP IRAs.
Example: Laura, a 40-year-old freelance graphic designer earning $150,000 annually, establishes a Solo 401(k). As both employer and employee, she can contribute up to $72,000 in 2026 (assuming she's under 50). She contributes $24,500 as an employee contribution, and an additional $35,625 (25% of her net self-employment income) as an employer contribution, for a total of $60,125. This significantly reduces her taxable income and supercharges her retirement savings compared to the $7,500 she could contribute to a traditional IRA.
Executive Deferred Compensation Implementation
Implement a deferred compensation strategy: For high-earning executives, explore non-qualified deferred compensation plans offered by your employer. These plans can help reduce current taxable income and provide additional retirement savings beyond traditional 401(k) limits.
Example: Mark, a 50-year-old CFO earning $400,000 annually, participates in his company's non-qualified deferred compensation plan. He elects to defer $50,000 of his salary and 50% of his annual bonus (typically around $100,000) each year for the next 10 years. Assuming a 7% return, by retirement at 60, this strategy could accumulate over $2 million in additional retirement savings. It also reduces his current taxable income, potentially keeping him in a lower tax bracket and increasing his eligibility for certain tax deductions and credits.