As Featured in Investopedia
Our founder, Michael Moffa, was interviewed by Investopedia for a deep-dive into a little-known tax strategy that gives business owners a rare second chance to lower their 2025 taxable income- even after year-end.
Read the full Investopedia article →
Why Most Business Owners Leave Money on the Table
The IRS code contains over 70,000 pages of rules, credits, and strategies and most business owners are only leveraging a fraction of them. At Prosperity Tax Advisors, we curate more than 1,500 IRS-approved tax strategies tailored to our clients’ specific situations. The one highlighted in Investopedia sits in a uniquely powerful category: post-December 31 retirement plan contributions.
Unlike standard business deductions that must be incurred or paid by year-end, certain retirement plan contributions can be made after December 31 and still count toward reducing your 2025 taxable income, provided you act before your tax filing deadline (including extensions).
The Strategy: Retirement Contributions That Beat the Deadline
SEP-IRA: Contribute Up to the Extended Filing Deadline
A Simplified Employee Pension (SEP-IRA) is one of the most flexible retirement vehicles available to business owners. For 2025, eligible individuals can contribute up to 25% of net self-employment income, capped at $70,000. The game-changing detail: contributions can be made as late as your extended tax return due date, giving many business owners until October 2026 to fund a 2025 deduction.
Solo 401(k): Maximum Savings for the Self-Employed
For self-employed individuals and owner-only businesses, the Solo 401(k) offers the highest contribution ceiling available. In 2025, total contributions can reach $70,000 (combining your role as both employee and employer), plus an additional $7,500 catch-up if you’re 50 or older. Those aged 60–63 benefit from a new SECURE 2.0 “super catch-up” provision allowing up to $11,250 in additional contributions.
$70K
Max SEP-IRA or Solo 401(k) contribution for 2025
$11,250
Super catch-up limit for ages 60–63 (SECURE 2.0)
1,500+
IRS-approved strategies curated for Prosperity clients
Why This Matters: The Tax Clock Is Still Ticking
Here’s the real urgency: while these strategies extend past December 31, they are not indefinite. The window closes when you file your return- and if you file early without making these contributions first, you lose the opportunity entirely. Acting before you file is essential.
This is one reason proactive tax planning matters so much. Most accountants focus on filing taxes- documenting what already happened. At Prosperity Tax Advisors, we focus on planning taxes- engineering the outcome before it’s too late to change it.
What Prosperity Tax Advisors Does Differently
We weren’t featured in Investopedia by accident. Our approach is built around one core principle: finding the legal, IRS-approved savings that your current CPA or accountant may not know about or may not be telling you.
- We curate 1,500+ IRS-approved tax strategies across industries and income levels
- We work with business owners, high-income earners, real estate investors, and executives
- Our average client saves between $30,000 and $250,000 per year
- We operate on a risk-free model: if we don’t find savings, you don’t pay
- We go beyond filing – we build a forward-looking strategy that compounds over time
Is This Strategy Right for You?
The retirement contribution “time machine” works best for business owners who:
- Are self-employed, a sole proprietor, or own a small business
- Have not yet filed their 2025 tax return (or plan to extend)
- Have not yet maxed out a SEP-IRA or Solo 401(k) for 2025
- Are in a tax bracket where a $30,000–$70,000 deduction creates real savings
If you check even one of those boxes, a 30-minute strategy call could be worth tens of thousands of dollars. That’s not hyperbole — it’s math.
Don’t Let This Window Close
The Investopedia feature shines a light on what proactive tax planning can accomplish. But reading about a strategy and implementing it are two different things. The deadline is your filing date, and every week you wait is a week closer to locking in a tax bill you didn’t have to pay.
Our team will review your situation, identify which strategies apply, and quantify your potential savings — at no cost and with no obligation. If we don’t find you savings, you don’t pay. It’s that simple.
