The New Chiropractic Office Retirement Guide: Options Compared

2026-08-21

Compare retirement plan options for new chiropractic offices: costs, tax benefits, setup steps, and practical advice for 2026.

Starting a chiropractic office means you are now responsible for your own retirement savings. Unlike a salaried job with a 401(k) match, you must choose and fund a plan yourself. This guide compares the main retirement options for new practice owners, with realistic 2026 costs and steps you can take this week.

Why Retirement Planning Is Different for Practice Owners

As a practice owner, you have no employer match, no automatic payroll deduction, and no HR department to set things up. You also have variable income, especially in the first few years. The right plan balances tax savings, contribution limits, administrative burden, and cost. The options below are the most common for solo or small chiropractic practices.

Option 1: Solo 401(k)

A Solo 401(k) is designed for a business owner with no employees other than a spouse. You can contribute as both employee and employer.

Employee deferral: Up to $23,500 in 2026 (plus $7,500 catch-up if age 50 or older).
Employer profit share: Up to 25% of compensation, total combined limit of $70,000 (or $77,500 with catch-up).
Cost: $0 to $500 to set up at a brokerage like Fidelity, Vanguard, or Schwab. No annual fee at most providers.
Tax benefit: Contributions are pre-tax, reducing your taxable income.
Setup time: 30 minutes online, plus a plan document.

Best for: Solo practitioners with no staff. If you hire employees later, you may need to switch to a different plan.

Option 2: SEP IRA

A Simplified Employee Pension (SEP) IRA is a traditional IRA with higher contribution limits. You contribute as the employer only.

Contribution limit: Up to 25% of net self-employment income, capped at $70,000 for 2026.
Cost: $0 to $100 to open at most brokerages. No annual filing if assets under $250,000.
Tax benefit: Pre-tax contributions, but you must contribute the same percentage for eligible employees (if you have any).
Setup time: 15 minutes with a one-page form.

Best for: Practices with no employees or those who want simplicity. But if you have staff, the required contributions can be costly.

Option 3: SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) IRA is for businesses with 100 or fewer employees. It allows both employee and employer contributions.

Employee deferral: Up to $16,000 in 2026 (plus $3,500 catch-up).
Employer match: Either a 2% non-elective contribution or a 3% match. You must choose one.
Cost: $0 to $50 to set up, plus minimal admin. No annual filing if assets under $250,000.
Tax benefit: Pre-tax contributions, but the employer match is mandatory.

Best for: Practices with a few employees, but the mandatory match can be a burden if cash flow is tight.

Option 4: Traditional 401(k) with Safe Harbor

If you have employees and want higher contribution limits, a traditional 401(k) with a safe harbor match is an option. This is more complex and costly.

Employee deferral: Same as Solo 401(k): $23,500 plus catch-up.
Employer match: Must be 100% of first 3% deferred, plus 50% of next 2%, or a 3% non-elective contribution. This is mandatory.
Cost: $1,500 to $3,000 per year for plan administration, plus setup fees of $500 to $1,500. Third-party administrator (TPA) required.
Tax benefit: Higher contribution limits, but the cost and complexity are significant.

Best for: Practices with 5 or more employees who want to maximize retirement savings.

Option 5: Defined Benefit Plan

A defined benefit plan (cash balance plan) is a pension plan that allows very large contributions, often $100,000 or more per year, depending on age and income.

Contribution limit: Determined by actuarial calculation, often $100,000 to $300,000 for high earners.
Cost: $2,500 to $5,000 per year for actuarial and admin fees, plus setup costs of $1,000 to $2,500.
Tax benefit: Huge tax deduction, but requires consistent funding and is complex.

Best for: Established practices with high income and few employees. Not recommended for new offices.

Comparison Table

Plan	Contribution Limit (2026)	Setup Cost	Annual Cost	Best For
Solo 401(k)	$70,000	$0-$500	$0	Solo owners
SEP IRA	$70,000	$0-$100	$0	No employees
SIMPLE IRA	$16,000 + match	$0-$50	$0	Few employees
Traditional 401(k)	$70,000	$500-$1,500	$1,500-$3,000	5+ employees
Defined Benefit	$100,000+	$1,000-$2,500	$2,500-$5,000	High income, few staff

How to Choose: A Practical Decision Tree

Do you have employees? If no, choose Solo 401(k) or SEP IRA. Solo 401(k) allows higher employee deferrals, so it’s usually better.
If yes, how many? If 1 to 5 employees, SIMPLE IRA is cheaper and simpler. If more than 5, consider a Safe Harbor 401(k).
What is your income stability? If income varies, SEP IRA gives flexibility because you can skip contributions in lean years. Solo 401(k) also allows flexible employer contributions.
What is your tax bracket? If you are in a high bracket and want to save more, a cash balance plan might be worth the cost, but only after you have steady profit.

Steps to Take This Week

Open a Solo 401(k) or SEP IRA at Fidelity, Vanguard, or Schwab. This takes less than an hour online.
Set up automatic transfers from your business checking to the retirement account each month. Start with $500 to $1,000 per month, even if small.
Estimate your annual contribution based on your net profit. Use the 25% rule for SEP or Solo 401(k) employer contributions.
Consult a CPA or retirement advisor to confirm the best plan for your specific situation, especially if you have employees.

FAQ

Can I have both a Solo 401(k) and a SEP IRA? No, you cannot contribute to both for the same year. You must choose one.

What if I hire an employee later? You may need to amend your plan. A Solo 401(k) can be amended to include employees, but you must then follow the rules for a traditional 401(k). A SEP IRA requires equal contributions for all eligible employees.

What is the deadline to set up a plan for 2026? For a Solo 401(k) or SEP IRA, you can set it up by the tax filing deadline, usually April 15, 2027 (or October 15 with an extension). For a SIMPLE IRA, the deadline is October 1, 2026.

How much should I contribute as a new practice owner? Aim for at least 10% of your net income. If you can, contribute 15% to 20%. Even small amounts compound significantly over time.

The Bottom Line

For most new chiropractic offices, a Solo 401(k) is the best starting point: low cost, high limits, and easy setup. If you have employees, a SIMPLE IRA is a practical next step. Avoid complex plans like defined benefit until your practice is stable and profitable. The key is to start now, even with small contributions. Set up your account this week, automate your savings, and review your plan annually with a financial professional. Your future self will thank you.