
What’s Still Possible for 2024 (as of October 2025): Last-Minute Retirement Plan Options for Business Owners
1) SEP IRA (most flexible “last-minute” option)
- Can still be opened and funded for 2024 up to your business tax return due date, including extensions (for many calendar-year filers, that’s Oct 15, 2025).
- Deduct employer contribution by that return; typical cap = 25% of compensation up to the annual dollar limit for 2024.
2) Profit-sharing plan (qualified plan without salary deferrals)
- Thanks to the SECURE Act, you can adopt a new qualified plan after year-end and still treat it as in effect for 2024 if you adopt it by your return due date (incl. extensions)—then fund/deduct the employer contribution by that date.
3) 401(k) — employer contributions for a plan that existed in 2024
- If you already had a 401(k) in 2024, you may make/deduct employer match or profit-sharing for 2024 up to the 2024 return deadline (incl. extensions) under IRC §404(a)(6). (Employee deferrals for 2024 had to occur via 2024 payroll.)
4) 401(k) — adopting a new plan now for the 2024 year
- Under SECURE, employers may retroactively adopt a 401(k) for 2024 by the extended 2024 return due date, but only employer contributions (no retroactive 2024 deferrals for employees).
- Exception for sole proprietors (no employees): SECURE 2.0 §317 lets a sole proprietor adopt a new solo-401(k) and make first-year elective deferrals for the prior year if done by the individual return deadline without extensions (generally Apr 15). This special window applied to the first plan year; see IRS model-language package noting this rule.
5) Cash Balance / Defined Benefit plans
- You can retroactively adopt a DB (e.g., cash balance) plan for 2024 by the extended 2024 return due date under SECURE; however, funding has strict actuarial timing, with a final funding deadline generally 8½ months after plan year-end. Coordinate with an actuary to confirm feasibility and contribution timing.
6) SIMPLE IRA (only if already in place for 2024)
- You cannot newly establish a SIMPLE for 2024 now (establishment deadline was Oct 1, 2024), but if you had a SIMPLE in 2024, employer match/nonelective may be made by the employer’s return due date (incl. extensions). (Employee deferrals had monthly deposit timing rules.)
Not available anymore for 2024: Personal Traditional/Roth IRA contributions (deadline was Apr 15, 2025).
Quick chooser (calendar-year businesses)
- Need maximum last-minute flexibility & simplicity: SEP IRA (open + fund by Oct 15, 2025 if extended). IRS
- Want larger deductible employer contribution and already use TPA/recordkeeper: Profit-sharing (open now under SECURE; fund by extended due date).
- Already have a 401(k) for 2024: Add match/profit-sharing by extended due date.
- Sole proprietor, no employees, missed 2024 payroll deferrals: The retroactive first-year deferral relief required acting by Apr 15; if that window passed, consider profit-sharing or SEP for 2024 instead.
- Targeting very high deductions & comfortable with actuarial funding: Explore cash balance/DB, but confirm 2024 funding deadlines before adopting.
What I’d do next (fast checklist)
- Confirm your entity & deadlines (S-corp/partnership returns often Sept 15; C-corp/sole prop Oct 15 if extended). Choose the path that matches your timeline.
- Get exact 2024 comp numbers for owners/eligible employees to size the contribution (25% cap rules for SEP/profit-sharing; actuarial calc for DB).
- Loop in your CPA/TPA to prep the adoption documents and deduction language (SECURE’s retroactive adoption election).