Every July, I watch business owners make the same quiet decision: retirement planning can wait until December. It feels reasonable. The year is only half over, and there are more urgent fires to put out.
My colleague Tonyia Cleaver, a Wealth Advisor and Strategist, explains below why that instinct is expensive. Some business owners’ retirement planning decisions have to be made well before year-end, and by the time most owners start thinking about it, certain options are already off the table.
But here is the part of her article that sits squarely in my lane. Look at what the plan decision actually depends on: profitability, cash flow, business structure, and what you can realistically commit to funding. Every one of those is a question your financials answer. If your books are three months behind, you are not choosing a retirement plan. You are guessing at one.
The owners who make this decision well are not the ones with the biggest profits. They are the ones who can see their numbers clearly enough in July to know what December will look like.
Here is Tonyia’s breakdown of the options and the deadlines that matter.
The Calendar Matters More Than Most Business Owners Realize
By Tonyia Cleaver, CEPA® Wealth Advisor and Strategist
As we begin the second half of the year, many business owners are taking inventory of what they have accomplished and what still needs their attention. If establishing a retirement plan for your business is still on your to do list, now is the time to move it to the top.
One of the biggest misconceptions I see is that retirement planning can wait until December. While there is still time to take advantage of many retirement planning opportunities for 2026, several plans have deadlines for when they must be established, while others have different deadlines for making contributions.
Understanding those deadlines now can help you avoid missing valuable tax planning opportunities later.
It is also important to remember that establishing a retirement plan and funding a retirement plan are often two different deadlines. Some plans must be in place before the end of the year, or even earlier, while others allow contributions up to your tax filing deadline.
Because every business is different, planning ahead creates more options.
The most effective planning happens when your CPA and financial advisor work together. Your CPA can project the tax impact based on your current financial results, while your financial advisor can help evaluate the retirement plan options that best fit your business, cash flow, and long term goals. Together, those conversations help you make informed decisions instead of rushed ones.
A common question I hear is: which retirement plan is best?
The answer depends on several factors, including your business structure, profitability, number of employees, cash flow, and personal retirement objectives. The best retirement plan is not necessarily the one with the highest contribution limit. It is the one that supports your business today while helping you build the future you want tomorrow.
Below is a high-level overview of some of the most common retirement plan options available to business owners.
Retirement Plan Options and Key Deadlines
| Retirement Plan | Establish By | Contribution Deadline | Best For |
|---|---|---|---|
| Solo 401(k) | Generally before year end* | Business tax filing deadline (employer contributions may generally be made by filing deadline, including extensions); employee contributions are due by year end | Self-employed individuals or businesses with no eligible employees |
| SIMPLE IRA | October 1 for most existing businesses establishing a new plan | Per plan requirements | Small businesses with employees |
| SEP IRA | Tax filing deadline, including extensions | Tax filing deadline, including extensions | Flexible employer contributions |
| Traditional IRA | Tax filing deadline | Tax filing deadline | Eligible individuals |
| Roth IRA | Tax filing deadline | Tax filing deadline | Eligible individuals (income limits apply) |
*Rules and deadlines can vary based on your business structure and current IRS guidance.
Planning ahead allows more time to evaluate your options rather than making decisions under pressure.
If opening a retirement plan has been on your list this year, now is an excellent time to begin the conversation with your CPA and financial advisor.
About the Author
Tonyia Cleaver, CEPA®, is a Wealth Advisor and Strategist who helps business owners, individuals, and families make intentional financial decisions that align with their goals, values, and life’s transitions. She specializes in retirement planning, business owner strategies, and helping clients navigate life’s major transitions.
Tonyia can be reached at 908-955-0077 x315 or tonyia@wwbpartners.com.
Why Clean Financials Make Business Owner Retirement Planning Easier
Tonyia made a point worth repeating: the best planning happens when your advisors work together. Your financial advisor evaluates the plan options. Your CPA projects the tax impact. Both of them are working from the same source: your financial statements.
If your numbers are current and accurate, those conversations take one meeting. If they are not, the conversation stalls while everyone waits for the books to catch up, and the calendar does not wait with you.
Your Books Should Be Ready Before the Deadline Is
If you want to talk with Tonyia about which plan fits your situation, her information is above. If you are not confident that your financial statements and bookkeeping could support that conversation today, that is the conversation to have with us first.
LUCI Financial Solutions provides fractional financial operations, including bookkeeping, controller, and CFO advisory for businesses across the Dallas-Fort Worth area and nationwide, with specific depth in helping business owners get their numbers retirement-ready before the deadlines arrive. Questions about what we do and how we work are answered in our financial operations FAQs.
Do not let unclear books be the reason you miss the window. Schedule a conversation with LaTara Scott today, or get in touch with our team and we will get back to you promptly.
