Building Your Retirement Plan as a Business Owner

Corporate employees get 401(k)s and matching contributions. Small business owners have to build it all from scratch.

There’s no default option, no HR department handling the paperwork and no one gently reminding you to set money aside. That’s why retirement planning often gets pushed to the back of the queue, especially when cash flow is tight or you’re laser-focused on growth.

But retirement is a game that rewards long-term planning. The earlier you put the right plan in place, the more flexibility you have to build wealth and retire on your own terms.

This guide is here to help. Whether you’re just starting out or reviewing your current setup, we’ll break down the most common small business retirement plans and how to choose the one that fits your goals, income and business structure.

The Type of Retirement Plan That’s Right For You

Retirement looks different for every small business owner. For some, retirement means a slow wind-down. For others, it’s a clear finish line. Some are focused on growing long-term wealth, while others just want something that’s tax-smart and easy to manage.

What matters most to you? To choose the right retirement strategy, it’s helpful to start by thinking through some foundational questions:

• Business structure: Are you running solo or planning to offer benefits to employees down the line?
  
• Contribution goals: How much do you want to save each year and how consistent is your income?
  
• Tax treatment: Do you want upfront deductions, tax-free growth or a mix of both?
  
• Plan management: Are you looking for a simple, low-effort option or something with more flexibility and control?

When you know what matters most, it’s easier to find a plan that works.

Where to Open Your Retirement Account (and What to Expect)

Once you’ve established your priorities, the next decision is: where do you want to open your account? And how much guidance do you want along the way?

From online platforms to in-person advisors, your choice will shape how easy it is to set up, fund and track your retirement savings.

Let’s take a quick look at what to expect from each provider.

Brokerage Firms
Firms like Fidelity, Schwab, Vanguard — and full-service providers like Comerica — offer access to SEP IRAs, SIMPLE IRAs, and other small business retirement plans. These institutions typically provide low fees, a wide range of investments and the ability to manage your plan online or with advisor support.

Banks and Credit Unions
Many financial institutions, including Comerica, offer retirement plan services through their banking and wealth management teams. If you prefer working with a provider who already understands your business and banking needs, this can be a seamless way to manage both in one place.

Robo-Advisors
Platforms like Betterment and Wealthfront make it easy to set up and automate retirement contributions. These tools offer built-in investment guidance, portfolio management and low fees, making them ideal for business owners who want to “set it and forget it.”

Financial Advisors or CPAs
For more personalized guidance, especially if you’re trying to balance retirement savings with tax planning or succession goals, a financial advisor or CPA can help you build a retirement strategy around your bigger financial picture.

Types of Retirement Plans to Consider

Each retirement plan is a tool. And like the kind you’d find in your toolbox, the right one depends on the job. Some are built for simplicity. Others are designed to help you save more as your business grows.

Here’s a closer look at five retirement plans worth considering.

SEP IRA (Simplified Employee Pension)
Best for: Solo business owners or those with just a few employees

A SEP IRA is about as simple as retirement planning gets, which is why it’s a popular first step for many self-employed business owners.

You can contribute up to 25% of your total compensation (up to $70,000 in 2025), and there’s no annual reporting to worry about. But there’s a catch: when you have employees, you’ll need to contribute the same percentage for them too.

Contributions are made by the employer only and are due by April 15 or when you file your personal tax return.

Solo 401(k)
Best for: Self-employed individuals with no employees (other than a spouse)

Looking to maximize what you set aside each year? A Solo 401(k) gives you more room to save than a SEP.

You can contribute as the employer and as the employee, up to $70,000 in 2025, with an extra $7,500 if you’re 50 or older. These plans offer the flexibility to choose between traditional and Roth contributions, but they come with a bit more paperwork and oversight. Still, the higher limits and dual contribution structure make it a go-to for owners with strong cash flow and no staff.

SIMPLE IRA (Savings Incentive Match Plan for Employees)
Best for: Small businesses with 100 or fewer employees

Ready to offer your team a retirement benefit, but don’t want to take on the maintenance of a 401(k)? A SIMPLE IRA offers a middle ground.

As an employer, you’ll either match up to 3% of what your employees contribute or make a 2% contribution across the board. It’s easier to administer than a full 401(k) and gives your team an accessible way to start saving without overloading your back office.

Traditional 401(k) (Group Plan)
Best for: Employers who want to attract talent and support long-term savings

The traditional 401(k) is what many employees expect and for good reason. It offers employee deferrals and employer matching, plus optional features like Roth contributions, automatic enrollment, and even profit-sharing.

That said, it comes with higher setup and administrative costs. But for businesses focused on growth and retention, it’s a powerful way to invest in your team and your future.

Roth IRA (Supplementary Option)
Best for: Business owners looking for tax-free growth and future flexibility

Roth IRAs aren’t tied to your business structure, but they’re a valuable supplement to any retirement plan. You contribute after-tax dollars, and the money grows tax-free (i.e,. no taxes due when you withdraw in retirement).

There are income limits, so not every owner will qualify. But if you do, it’s a great way to diversify how your savings will be taxed later in life.

The Smart Way to Compare Plans

If you’ve ever picked between business accounts, upgraded your phone, or chosen the “right” software for your team, you know the details matter. Retirement plans are no different. When you dig into contribution limits, tax treatment and administrative complexity, the tradeoffs become clear.

Fortunately, you don’t have to figure it all out on your own.

The IRS offers plan comparison charts that give a clear side-by-side view of contribution limits, eligibility rules, and filing requirements. Many brokerage platforms also provide tools to help you evaluate which plan fits your business best.

You can also use retirement savings calculators to estimate how much you could save on taxes or grow your nest egg based on your income and contribution habits. And if you want a second opinion or need to integrate your retirement plan into a broader financial strategy, a CPA or financial advisor can help you make sure everything works together.

Checklist: Build a Confident Retirement Plan

Your retirement plan doesn’t have to be complicated. Use this checklist to take the guesswork out of setting up or refreshing your approach.

Getting Started: How to Set Up Retirement as a Small Business Owner

• Estimate your income and contribution capacity for the year.
• Choose a plan type based on whether you have (or plan to have) employees.
• Research providers (brokerages, banks, advisors) and compare fees and services.
• Open your account and select your investments (target-date funds, ETFs, etc.).
• Set up recurring contributions or reminders to contribute annually.
• Keep account statements and plan documents organized for tax time.

Already Saving? Make Sure You’re Optimizing Your Plan

• Revisit your plan type. Could you contribute more to one plan than another?
• Review your investment mix to ensure it still aligns with your risk tolerance and timeline.
• Check your annual contributions and look for opportunities to increase them.
• Confirm your plan’s tax treatment. Do you need more Roth or more traditional tax shelters?
• Evaluate fees and consider if you're paying more than you need to.
• Talk with your CPA or advisor about how your retirement strategy fits into your overall tax planning.

Make smarter money moves for your business and your future. 

Visit Comerica.com/insights for professional advice on financial planning, retirement strategies and business success.

Comerica Wealth Management consists of various divisions and affiliates of Comerica Bank and subsidiaries of Comerica Bank including Comerica Insurance Services, Inc. and its affiliated insurance agencies. Comerica Bank is an Equal Opportunity Lender. Securities and other non-deposit investment products are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, Comerica Bank or any of its affiliates, and are subject to investment risks, including possible loss of the principal invested. Comerica and its affiliates do not provide tax or legal advice. Please consult with your tax and legal advisors regarding your specific situation.