Patrick Anderson – President of UniFirst Financial and Tax Consultants

You are working harder than ever, but the IRS is taking a bigger cut than they deserve.

In 2026, retirement planning is not a “later” decision. It is a right-now tax move. Done correctly, it can cut your tax bill dramatically while building long-term income.

At UniFirst Financial and Tax Consultants, we treat retirement planning like a tax strategy first.

"We help business owners keep more of what they earn by using proven strategies—unlike those offered anywhere else."

The 50% Tax Reduction: Real Strategy, Real Results

Can retirement planning reduce taxes by up to 50%? In many cases, yes.

Here is why it works:

• You shift money from taxable income into tax-advantaged accounts
• You may reduce income tax, and depending on your structure, potentially self-employment-related taxes
• You may qualify for SECURE 2.0 credits that directly reduce your tax bill

"Your retirement plan can be the difference between paying the IRS extra… or keeping it in your business and your future."

The 3 Plans Entrepreneurs Use Most (And Who They Fit)

1) Solo 401(k): High Power for Solo Owners

If you are self-employed with no employees (other than a spouse), the Solo 401(k) is often the top option for 2026.

Why entrepreneurs like it:

• Potential for very high contributions (depending on income and plan design)
• Roth and pre-tax options available
• Loan feature may be available (plan rules apply)

One key nuance for 2026: catch-up contribution rules and Roth requirements can apply based on prior-year wages. These details matter, because one wrong move can limit your savings or create unnecessary tax friction.

Want the bigger picture? See our guide on 2026 tax law changes.

2) SEP IRA: Simple and Flexible

If you want a plan that is easy to open and easy to fund, a SEP IRA can be a strong fit.

What it does well:

• Straightforward setup and administration
• Flexible funding (you can contribute more in strong years and less in tight years)
• Often can be funded up to your filing deadline (including extensions)

The tradeoff: if you have eligible employees, SEP contributions generally need to be consistent across employees. That is where many owners get surprised.

3) SIMPLE IRA: Good for Small Teams

If you have a small team and want a plan with less administrative complexity than a 401(k), a SIMPLE IRA can be worth considering.

It can be a clean starting point, but the contribution limits are usually lower than what high-income owners want when the main goal is aggressive tax reduction.

SECURE 2.0 Credits: “Free Money” If You Structure It Right

SECURE 2.0 created credits that can help offset the cost of starting (and funding) a retirement plan.

Depending on your situation, you may be able to stack:

• A startup/administrative cost credit
• An employer contribution credit (subject to rules and phase-outs)
• An automatic enrollment credit (for certain plan types)

These credits can be “use it or lose it.” We build the plan to capture what you qualify for and avoid the common setup mistakes. If you want a quick reality check, review our breakdown of 7 mistakes you’re making with the 2026 tax changes.

The UniFirst Difference: Tax Planning First, Investments Second

Most advisors start with products. We start with structure.

We look at:

• Your entity type (LLC, S-Corp, C-Corp)
• Your household income and tax brackets
• Your retirement income goals
• Your legacy and beneficiary goals

"We build a customized tax plan that turns retirement contributions into a repeatable, year-after-year tax reduction system."

We also coordinate retirement planning with legacy protection strategies, including estate planning for business owners.

A steady, disciplined plan wins over guesswork. As it says in Proverbs 21:5: "The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty."

Quick Decision Guide (Keep This Simple)

Choose the direction that matches your business today:

• Solo owner, high income: start with a Solo 401(k)
• Solo owner, want simple: consider a SEP IRA
• Small team, want straightforward: look at a SIMPLE IRA
• Growing team + high owner savings goal: consider a customized 401(k) strategy

Choosing the wrong plan can cost you thousands in avoidable taxes.

Take Action: No-Obligation Free Assessment

Stop guessing and start using the rules.

"No obligation. No pressure. Just clear numbers and a plan you can execute."

UniFirst Financial and Tax Consultants
Website: https://unifirstfinancial.com
Address: 205 Van Buren St., Suite 120, Herndon VA 20170
Phone: (888) 581-3320
Email: patrick@unifirstfinancial.com

More Resources

• Review Our Work and Client Success Stories
• 7 Mistakes You're Making With the 2026 Tax Changes (Part 2)
• Roth or Pre-Tax? The 2026 Strategy Guide