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

1. 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.

2. 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.

3. 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

1. 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.

2. 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.

3. 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:

WEBINAR LINK

Ready to build your personalized QBI & Retirement Roadmap? Book your Tax Strategy Session today:

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