Turbo-Charge Your QBI & Retirement Strategy Under the New Law
For many digital entrepreneurs—whether you’re running a subscription-based SaaS or a boutique design studio—the 20% Qualified Business Income (QBI) deduction has been a cornerstone of tax savings since the Tax Cuts and Jobs Act. The 2025 Tax Relief for American Families and Workers Act permanently preserves that benefit, while also enhancing some retirement-related credits and deductions. When combined strategically, these provisions can unlock savings of $10K–$50K+ per year.
What Stayed, What Changed, and What’s New
QBI Deduction Remains at 20%
Income thresholds have been indexed: $75K for singles, $150K MFJ before phase-outs.
A minimum deduction of $400 for $1,000 of self-employed income ensures small-scale entrepreneurs get a larger benefit.
Indexed Retirement & Other Tax Deferred Accounts
401k Limits are $23,500 with Super Catch Up Retirement Contributions available for those who are between 60-63 for an additional $11,500 and all SEP limits are 25% or $70k.
Health Savings Accounts are now available for bronze and catastrophic health plans purchased through the Exchange.
ABLE Account contributions (for disabled people) now qualify for the Saver’s Credit—another layer of potential savings.
Expanded Retirement Rollover Opportunities
Roll unused 529 education savings into Roth IRAs (subject to new limits), turning unspent tuition dollars into retirement investments.
Why This Matters to You
Imagine you’re a founding partner in a fast-growing marketing agency:
You take 20% of your net profits off the top via QBI.
You max out a Solo 401(k) or SEP IRA to shelter additional profits—now with higher indexed limits.
Combined, those strategies can easily exceed $25K in annual tax savings—and lay the groundwork for long-term retirement security.
Your Next Steps
Assess Your QBI Eligibility
Confirm your filing status and income level relative to the new thresholds.
Identify any factor limits (e.g., wage or property tests) that could affect your deduction.
Optimize Retirement Contributions
Revisit your Solo 401(k), SEP IRA, or Roth IRA plan for higher, indexed contribution limits.
Explore ABLE (if you qualify) which is now eligible for the Saver’s Credit or new HSA eligibility opportunities with Exchange plans.
Map Out a Multi-Year Savings Plan
Use scenario projections to see how QBI + retirement moves compound over 3, 5, and 10 years.
“When you layer QBI, indexed retirement credits, and rollover options, you’re no longer just saving on today’s taxes—you’re funding tomorrow’s freedom.”
– Misty Newsome
Watch our full webinar unpacking these provisions and live Q&A here:
Ready to build your personalized QBI & Retirement Roadmap? Book your Tax Strategy Session today:
We help with the stuff behind the scenes so you can make informed financial decisions, look at the big picture, and focus more on the fun parts of running your business.
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