How Do I Retire From My Business Without Overpaying In Taxes?Retire On Your Terms, Without Overpaying In Taxes.
If the business is your largest asset, your retirement plan starts there. Maartin plans how you pay yourself now, how you step away and how much you keep.
The Short Answer
Plan the exit before you set the date. Maartin maps how you pay yourself today, which retirement accounts fit an owner, how insurance protects the business while you run it, and when income and taxes land as you step away. Your CPA reviews the tax side, so every decision is checked by the person who files your return.
Three Rules Owners Ask About
- 25%
- A SEP allows employer contributions of up to 25 percent of each employee’s pay, within the IRS dollar limit.
- $250,000
- Plan assets above this at year end mean a one-participant 401(k) files Form 5500-EZ.
- 2 Years
- Medicare bases your Part B premium on your tax return from 2 years earlier, so a large sale year can raise it later.
Source: IRS.gov and Medicare.gov
Sound Familiar?
What Keeps Owners Up At Night.
Owners carry questions an employee never has to ask. These are the ones Maartin plans around.
- Most Of Your Wealth Is The BusinessThe company pays you today, and your retirement depends on what it becomes when you step away.
- You Pay Yourself Several WaysSalary, draws and distributions each show up differently on your return. Your CPA sees the result, and the plan starts there.
- The Exit Has No Date YetA sale, a partner buyout and a family handoff each work better with years to plan.
- An Account You Opened Years AgoThe plan you set up long ago may no longer match your income or your staff. The IRS offers several built for owners.
- If Something Happened To YouInsurance can fund a partner buyout or cover the loss of a key person while the company adjusts.
- Where Taxes Are LeakingA sale year can push your income high enough to raise your taxes and, two years later, your Medicare Part B premium.
Accounts Built For Owners
SEP Or One-Participant 401(k)?
Two common IRS plans for owners, in the IRS’s own terms. Maartin lays them beside your income and your staff, and your CPA confirms the fit.
| Question | SEP IRAEmployer Contributions Only | One-Participant 401(k)For Owners With No Employees |
|---|---|---|
| Who It Fits | A business of any size, including the self-employed. | An owner with no employees, or the owner and a spouse. |
| Who Puts Money In | The employer only. Employees can’t add their own. | The owner, wearing two hats: employee deferrals and employer contributions. |
| Employer Contribution | Up to 25 percent of each employee’s pay, within the IRS dollar limit. | Up to 25% of compensation as the plan defines it, plus deferrals up to the yearly limit. |
| If You Hire | You contribute at the same rate for every eligible employee. | Eligible employees join the plan, and nondiscrimination testing applies unless the plan is exempt. |
| Yearly Filing | The employer generally has no filing requirement. | Form 5500-EZ once plan assets top $250,000 at the end of the year. |
The IRS also lists SIMPLE IRAs, profit-sharing plans and traditional pension plans for owners, and your income, staff and CPA decide which one fits.
Working With Maartin
From Today To Your Exit.
- 01
How You Pay Yourself
Start with salary, draws and distributions as they stand today, with your CPA’s numbers in hand.
- 02
Your Exit Timeline
Sale, partner buyout or family handoff: set a target year and work backward from it.
- 03
Accounts And Coverage, Compared
See owner retirement plans and insurance options side by side, including how a partner buyout would be funded.
- 04
A Plan Your CPA Can Review
You leave with a tax-aware retirement income plan and a timeline to your exit, written so your CPA can check every assumption.
Services That Connect
Services For Business Owners.
Business Owner Planning
Key person coverage, buy-sell funding and retirement income for the business you run today.
Read MoreTax-Efficient Retirement Income
Which account you draw from, and when, planned alongside your CPA.
Read MoreRetirement Income Planning
The written plan behind your monthly income: what you need, where it comes from and how long it lasts.
Read MoreQuestions
Common Questions
Can Maartin help me sell my business?
Maartin plans the money side of your exit: the income you need afterward, how insurance can fund a partner buyout and the timing your CPA and attorney work from. The sale itself runs through your attorney, your CPA and any broker you hire.
Which retirement plan fits a small business owner?
That depends on whether you have employees, how steady your income is and how much you want to set aside each year. The IRS lists several options for owners, including a SEP, a one-participant 401(k) and a SIMPLE IRA. Maartin compares them with your numbers, and your CPA confirms the choice.
How can selling my business affect my Medicare premium?
Medicare sets your Part B premium from the modified adjusted gross income on your tax return from 2 years earlier. For 2026, the premium rises when that income was above $109,000 on an individual return or $218,000 on a joint return. A large sale year can raise it two years later, so Maartin and your CPA plan the timing together.
Do I need my CPA involved?
Yes. MJR Financial & Insurance Services does not give tax advice, and every owner plan touches taxes. Maartin builds the income and insurance side and writes it so your CPA can review the tax side before you act.
What should I bring to a business owner review?
Bring your recent business and personal tax returns, statements for any retirement plan you have, your current insurance policies and any buy-sell or partnership agreement. A rough idea of when you want to step away helps too.
Sources
- SEP contributions up to 25 percent of each employee's pay
- One-participant 401(k) covers an owner with no employees, or the owner and a spouse
- IRS lists SIMPLE IRA, profit-sharing and traditional pension plans for self-employed owners
- Part B premium is based on income from the tax return 2 years earlier; 2026 thresholds $109,000 individual, $218,000 joint
Planning Your Exit?
Keep More Of
What You Built.
Bring your numbers and your CPA’s questions, and leave with a timeline from today to the day you step away.
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