My Simple Retirement Savings Plan - As A Small Business Owner

Oct 2

Saving for retirement is overwhelming. There are multiple account options, and multiple ways to invest the funds. Even if you’re self-employed, you still have options!

Since opening my Roth IRA at 18 years-old, I’ve developed a passion for investing in my retirement - and ensuring those funds are invested. But I like to keep it simple. Here’s my simple retirement savings plan, as a small business owner.

My Simple Retirement Savings Plan

1.) Max out My HSA Contribution

If you qualify for a health savings account (HSA), this should be your priority too.

It’s the only account with a triple tax advantage, meaning your contributions count as a credit on your annual tax return, you don’t pay taxes when you use the funds for qualifying expenses, and you don’t pay taxes on earnings (interest, returns, dividends, etc.).

And unlike a flexible spending account (FSA), your HSA funds never expire.

Since healthcare is a top expenditure as we age, I feel comfortable maxing out my HSA every year. I also don’t have to wait until retirement to use these funds.

I use my HSA to cover co-pays, contact lenses, dentistry (since I don’t have dental insurance), menstrual products, chiropractic appointments, and more.

And even though my husband has a separate health insurance plan and doesn’t qualify for his own HSA, because we’re married, I can use my funds to cover his medical expenses too.

Current HSA contribution limits. →

My business makes my HSA contributions. I transfer the funds from my business account direct to my Fidelity HSA, typically quarterly. I simply divide the total HSA contribution limit by 4.

P.S. My business also pays for my health insurance premiums - and writes them off!

2.) Max Out my Roth IRA Contribution

I haven’t been able to achieve this just yet, but I’m close!

I contribute to my Roth IRA weekly from our personal checking account. The reason why is that your Roth IRA is post-tax money, meaning your contributions don’t count as a credit on your taxes. (Money contributed from my business account is “pre-tax”; see SEP IRA below.) The advantage is that you aren’t taxed on the funds when you draw from them during retirement.

Current Roth IRA contribution limits. →

Because your household income has to fall below a certain amount to qualify for a Roth IRA, I make sure to invest as much as I can in this account. We’re not close to the household income limit, but hopefully we will be someday!

I also like the idea of not having to pay taxes on this money later. What I have is what I get.

3.) Contribute to my SEP IRA Weekly

The counterpart of a Roth IRA is a Simplified Employee Pension (SEP) IRA. It works like a Traditional IRA or 401(k) in that your contributions count as a tax credit now and the distributions are taxed later.

The limit is 25% of your business’ net income, up to a certain amount. Current SEP IRA contribution limits. →

If you have employees, you must contribute the same percentage to a SEP IRA for them as you do yours (once they meet certain requirements). This gets a bit complicated, so be sure to reach out to a business advisor, financial planner, or CPA (certified public accountant) for help.

If you’re a solopreneur, ask your CPA about a Solo 401(k). This may be a better option for you and your business.

Because I prioritize my HSA and Roth IRA contributions, I review my business budget and find a weekly contribution amount that I feel comfortable with. As of this October 2025, it's $75/week.

How I Invest These Funds

Your retirement contributions won’t amount to much unless you invest them. Because my retirement is decades away, my portfolio is high risk and heavily allocated to mutual funds, which are tied to the stock market.

My Roth IRA and SEP IRA are invested through a wealth management company, though I do intend to learn more about investing so I can eliminate the middle man and do it myself. When I get to that point, I plan on moving my accounts to SoFi where we already have a high yield checking and savings account.

My HSA is with Fidelity where I can eventually invest it, but I’ve been using my funds to pay off medical debt and earmark a certain amount for upcoming medical expenses, so there hasn’t been any leftover to invest.

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