How to Set Up Retirement Planning as a Real Estate Agent

So you've smoothed out your cash flow to build consistency with a commission-based income. But what about your retirement?

If you're a real estate agent, you already know the hustle never stops. But one day, you'll want to stop. Will your money be ready?

Most agents I talk to haven't set up a retirement plan. Not because they don't care — but because the options are confusing, the income is irregular, and there's always something more urgent than "future me."

Let me make this simple.

The Problem: No W-2, No 401(k)

Traditional employees get retirement plans handed to them. A 401(k) with matching contributions, automatic deductions, and HR explaining everything.

As a real estate agent — whether you're a 1099 independent contractor or an S-Corp owner — you're on your own. And that means most agents end up doing one of two things:

Nothing. They keep telling themselves "next year" until next year becomes never.
A basic IRA. They open a Traditional or Roth IRA, contribute the maximum ($7,000 in 2024, or $8,000 if you're 50+), and call it a day.

Here's the problem: $7,000 a year won't fund the retirement you want. If you're earning $100K–$300K+ in commissions, you need a plan that can keep up.

Retirement Plan Options for Real Estate Agents

Here are the main options, ranked from simplest to most powerful:

1. Traditional or Roth IRA

Contribution limit: $7,000 ($8,000 if 50+)
Best for: Getting started, supplementing another plan
Downside: Low contribution limits won't move the needle for high earners

2. SEP IRA

Contribution limit: Up to 25% of compensation, max $69,000 (2024)
Best for: Solo agents who want higher contributions without the complexity
Downside: Must contribute the same percentage for all eligible employees (if you have staff)

3. Solo 401(k)

Contribution limit: Up to $69,000 as employee + employer (2024), plus $7,500 catch-up if 50+
Best for: Solo agents or agent + spouse businesses
Advantage: Can contribute as both employee and employer; allows Roth contributions in many plans

4. Defined Benefit Plan

Contribution limit: Can be $100,000+ per year depending on age and income
Best for: High-earning agents (typically 45+) who want to accelerate retirement savings
Downside: Complex to set up and maintain; actuarial calculations required; less flexible

Which Plan Is Right for You?

It depends on three things:

Your income level. Higher earners need plans with higher contribution limits.
Your age. Older agents may benefit from aggressive catch-up strategies like defined benefit plans.
Whether you have employees. Some plans require contributions for all eligible employees.

Here's my general framework:

Earning under $50K? Start with a Roth IRA. It's simple, tax-free growth, and you can always upgrade later.
Earning $50K–$150K as a solo agent? A Solo 401(k) gives you the best combination of high limits and flexibility.
Earning $150K+ and want to catch up fast? Consider a Solo 401(k) + a defined benefit plan stacked together for maximum contributions.
Have employees? A SEP IRA may be simplest, but talk to us about whether a 401(k) with profit sharing makes more sense.

The Tax Advantage

Here's what most agents miss: your retirement plan isn't just about saving for the future. It's one of the most powerful tax reduction tools available.

Every dollar you contribute to a pre-tax retirement plan reduces your taxable income for that year. In a good commission year, maxing out your contributions can save you $10,000–$30,000+ in taxes while building your future.

That's not just saving. That's smart tax strategy.

Real Example: Agent Retirement Makeover

Let me share a recent client story (details changed for privacy):

Sarah, 52, had been a top-producing agent for 15 years. She'd been contributing to a Roth IRA — $7,000 a year — and had about $110,000 saved.

After working with us:

We set up a Solo 401(k) + Defined Benefit Plan combo
She's now contributing over $130,000 per year
Her tax savings alone cover nearly half the contribution
Projected retirement balance in 13 years: over $2.5 million

That's the difference between "saving something" and "building wealth."

Steps to Get Started

Assess your current situation. What do you have saved? What are you earning?
Choose the right plan structure. Don't overcomplicate it, but don't under-power it either.
Set up automatic contributions. Treat your retirement like a commission — it gets paid first.
Review annually. As your income grows, your plan should grow with it.
Coordinate with your tax strategy. Retirement contributions are a tax play. Don't leave money on the table.

The Bottom Line

You didn't get into real estate to work forever. But without a plan, forever is exactly how long you'll work.

If you haven't set up a retirement plan — or if the one you have isn't keeping up with your income — let's talk. We'll build a plan that matches your earnings, reduces your taxes, and funds the retirement you actually want.