At The Money: How to Max Out Your Small Business Retirement Plan

This episode of Bloomberg's At The Money explores advanced retirement planning strategies for small business owners and solo practitioners, focusing on maximizing tax-advantaged savings through SEP IRAs, solo 401ks, and the mega backdoor Roth option. Dan LaRosa, an expert in corporate retirement plans, breaks down the nuances of each plan, emphasizing that while SEPs are simpler and ideal for high earners with stable income, solo 401ks offer greater flexibility—especially for those with fluctuating income or multiple partners. The mega backdoor Roth feature allows up to $72,000 in Roth contributions annually, a powerful tool for those prioritizing post-tax growth. The discussion also covers critical operational details: setup timelines (with contributions possible through October 15th for 2025), compliance requirements like Form 5500EZ filings once assets exceed $250,000, and the importance of proper employee classification—especially for spouses. A key insight is that solo 401ks lack the ERISA creditor protection of traditional 401ks, which matters for high-risk professions. The episode concludes with a strong call to action: consult a financial or tax professional to unlock these tools and dramatically boost long-term wealth accumulation.