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Business Owner Retirement and Exit: Plans, Sale Structure, and the Tax Bill

Updated July 31, 2026. Quick answer: an owner has two problems most employees never face: choosing a retirement plan that is genuinely yours to design, and eventually converting the business itself into retirement money. The plan side rewards attention because the ceilings are high and the traps are structural – a controlled group can silently disqualify a solo 401(k), and a cash balance plan is a mandatory funding commitment rather than an optional one. The exit side is where the largest single tax bill of your life is decided, usually by allocation: how the purchase price is split across asset classes, whether the structure preserves QSBS, and whether an installment sale actually helps. Both halves are below, plans first.

Choosing and funding the plan

Selling the business: structure and allocation

After the sale

Other owner questions

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