If you’re self-employed with no employees, you’ve got a golden opportunity to reduce your tax liability and build serious retirement wealth—if you act before filing your 2024 return.

Too many freelancers, consultants, and one-person S or C corps miss out on thousands in tax savings simply because they didn’t choose the right retirement plan—or didn’t act in time.

At Polaris Tax & Accounting, we help business owners across Florida and the U.S. make smart retirement moves that maximize deductions and long-term growth. Here’s your no-fluff guide to the best retirement plan options for 2024.

Why Now Is the Time to Set Up a Plan

Even though 2024 is coming to a close, you can still open and fund certain retirement plans up to your tax filing deadline (including extensions). That means:

  • You can make deductible contributions that reduce your 2024 tax bill
  • You can grow funds tax-deferred or tax-free for years to come

But each plan has different rules, deadlines, and paperwork—so don’t wait.

1. SEP-IRA

✅ Contribution Limit: Up to $69,000 for 2024 (25% of net earnings from self-employment)
✅ Deadline to Set Up & Fund: Tax filing deadline (including extensions) ✅ Best For: Simple setup and high contributions without admin burden

A favorite among sole proprietors and small corporations due to its ease and flexibility.

2. Solo 401(k)

✅ Contribution Limit: Up to $69,000 ($76,500 with age 50+ catch-up), or more with super catch-ups in 2025
✅ Deadline to Set Up: December 31, 2024 (for calendar-year businesses)
✅ Deadline to Fund: Employee deferrals by 12/31; employer contributions by filing deadline ✅ Best For: Owners who want to max out tax savings and have variable income

Solo 401(k)s allow both employee and employer contributions—making them the most powerful deduction tool for solo businesses.

3. SIMPLE IRA

✅ Contribution Limit: $15,500 + $3,500 catch-up (age 50+) for 2024
✅ Deadline to Set Up: October 1, 2024
✅ Best For: Modest income earners seeking low fees and easy compliance

If your income is lower or you’re just starting out, the SIMPLE IRA provides a good mix of savings and simplicity.

4. Keogh Plan (Money Purchase or Profit Sharing)

✅ Contribution Limit: Similar to SEP—up to 25% of compensation or $69,000
✅ Best For: High-income earners wanting more control, especially if borrowing from the plan is desired

Keogh plans require more paperwork but allow for loan provisions and customizable structures. Ideal for those wanting long-term control.

5. Profit-Sharing Plan (Via Solo 401(k) or Keogh)

✅ Contribution Limit: Up to 25% of salary or net earnings
✅ Can Be Paired With: Solo 401(k) or SEP-IRA for enhanced flexibility

This is a smart add-on for businesses with fluctuating profits, giving you a year-end decision window.

Choosing the Right Plan for You

Ask yourself:

  • Do I want maximum deductions or simplicity?
  • Do I have W-2 wages or only business income?
  • Can I contribute before year-end, or do I need flexibility into filing season?

📍 At Polaris, we help solo business owners choose the plan that fits their goals, income, and lifestyle—and set it up correctly the first time.

Internal Resources for Further Reading:

Take Action Before You File

Still haven’t set up your plan for 2024? You have time—but not much.

👉  Schedule a consultation today  with Polaris before filing your return, and we’ll walk you through:

  • The best retirement plan for your entity and income
  • How much you can contribute now to lower your tax bill
  • How to stay compliant and avoid IRS red flags