Business Exit Success

Ep #118: 401(k) for Business Owners Explained: Traditional vs Safe Harbor, Contribution Limits, and Common Myths


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Are you a business owner looking to build wealth and lower your tax bill? In this episode, we break down everything you need to know about setting up a 401(k) retirement plan for small businesses including how to choose between a Traditional 401(k) and Safe Harbor 401(k).

You'll learn how to leverage the 2025 contribution limits, automate your savings strategy, and avoid costly mistakes with the help of a Third-Party Administrator (TPA).

Key Topics Covered:

  • Common myths about 401(k) plans for entrepreneurs and small business owners

  • Safe Harbor 401(k) vs Traditional 401(k): pros, cons, and compliance differences

  • 2025 401(k) contribution limits and how to maximize them

  • The role of TPAs in managing and optimizing your plan

  • How to automate your retirement investing strategy

Whether you're a solo entrepreneur or have a growing team, this episode is your guide to creating a tax-advantaged retirement plan that helps secure your financial future without relying solely on selling your business.

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Business Exit SuccessBy Tom Poltersdorf Jr.