As a woman business owner, you’ve worked hard to build something that reflects your vision, values, and ambition. But while your focus is often on growth and reinvestment, one of the most powerful decisions you can make—for both your future and your team—is choosing the right retirement plan structure.

At InVestra, we understand the unique position high-earning women business owners hold when it comes to building long-term wealth. Whether you’re a solo entrepreneur or leading a growing team, the right retirement plan can deliver tax advantages, long-term security, and a foundation for your next chapter.

Choosing the Right Plan: SEP IRA, Solo 401(k), or Defined Benefit?

If you’re self-employed or running a small business, your retirement options are broader—and potentially more impactful—than many realize.

  • SEP IRA: A simple and flexible option, especially for solopreneurs or businesses without employees. Contributions are employer-only, and limits are generous (up to 25% of compensation, capped annually).
  • Solo 401(k): Ideal for self-employed women with no employees (except a spouse), this plan allows both employee and employer contributions, maximizing your annual savings potential.
  • Defined Benefit Plan: A powerful solution for high earners seeking to make large, tax-deductible contributions. This plan is complex but can offer annual contribution limits in the six figures—making it a strong fit for those nearing retirement or catching up on savings.

Business Structure Matters: LLC vs. S-Corp

Your business entity impacts how retirement contributions are calculated and taxed.

  • LLCs are often taxed as sole proprietorships or partnerships, meaning contributions are based on net self-employment income.
  • S-Corps, on the other hand, allow for salary-based contributions, which may make a Solo 401(k) or Defined Benefit Plan more favorable depending on your income split between salary and distributions.

Understanding how your structure plays into your retirement plan strategy is crucial—and something that should be revisited as your business evolves.

Supercharging Retirement with a Cash Balance Plan

A Cash Balance Plan, a hybrid between a traditional pension and a 401(k), allows you to make even higher contributions than other plans—sometimes exceeding $200,000 annually.

These plans are particularly effective for high-earning women business owners in their peak earning years who are looking to accelerate retirement savings and reduce current tax liability. They also pair well with existing 401(k) structures to maximize benefits.

Planning for Your Exit—and Your Legacy

Retirement planning isn’t just about saving—it’s about preparing for what comes next. As a woman leading a successful business, planning your own retirement should happen in tandem with succession planning.

Whether you’re transitioning ownership, selling the business, or grooming internal leadership, your retirement plan can (and should) reflect the big-picture strategy.

Let’s Build a Retirement Plan That Works for You
Every business is different—and so is every retirement path. At InVestra, we specialize in custom-designed retirement strategies for women-owned businesses that support personal goals, reduce taxes, and help care for employees.

We also have an on-staff CEPA® (Certified Exit Planning Advisor) to help guide you through the exit planning process—so your next chapter is just as intentional as your career has been.