Retirement Stacking: Supercharging Your Future Tax Savings
Saving for retirement is smart. But with the right strategy, you can stack multiple retirement plans for even bigger tax advantages.
Common Tools:
- Solo 401(k): For self-employed and small business owners. Allows high contributions (employee + employer portions).
- SEP-IRA: Flexible for businesses with variable income.
- Cash Balance Plans: Great for high earners—combine with 401(k) to supercharge savings.
Example for High Earners:
- Solo 401(k) contribution limit (2025): Up to $69,000 with catch-up contributions.
- Add a Cash Balance Plan: Potentially save $100,000+ per year while reducing taxable income.
Benefits of Stacking:
- Massive tax deferral (pay less now, save more for later).
- Accelerates retirement savings.
- Creates a strong shield against unpredictable tax law changes.
Who Should Consider This:
- High-income business owners.
- Professionals nearing retirement who want to catch up.
- Companies with stable cash flow looking to reward owners and key employees.
👉 Pro Tip: Work with a CPA or financial advisor—stacking has rules, but done right, it’s one of the most powerful wealth-building tools.