Posted by u/solo_llc_owner
Business owner, what retirement account should I open?
Answered by Ask a Shop Owner ·
S-corp, one employee (me), $130k salary. Have not opened any retirement account. Feel dumb.
u/askashopowner Owner-business owner advisor
Top answer
Solo 401(k). Highest contribution limits for a solo S-corp owner. You can put in up to $23k as employee and about 25 percent of salary as employer, hitting the annual cap ($69k in recent years).
Fidelity or Schwab, both free to open, no annual fee. Takes 20 minutes.
Open it this month even if you only fund $5k this year. Getting the account open is 90 percent of the work. Contributing more comes with time. Owners lose 5 to 10 years of tax-advantaged compounding waiting to get it perfect.
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