The IRS has issued a set of rules that could allow business owners to save tens of thousands of dollars from taxes through employer-sponsored retirement plans designed for small businesses. These rules apply to retirement plans specifically for self-employed individuals and small business owners. Three specific plans, SEP IRAs, allow individuals to contribute up to $70,000 for 2025 tax year and a Simplified Employee Pension IRA, which is one of the most powerful retirement tools available to self-employment professionals. These plans also offer higher limits and flexible deadlines. However, these plans do not allow catch-up contributions for people 50 and older, nor do Roth contributions through a standard SEP IRA, limiting tax diversification options in retirement.