Retirement Plans for Event Planners: Solo 401(k) and Managing Feast-or-Famine Income
Event planners with variable income face a retirement planning challenge: revenue is concentrated in peak season (May-October for weddings, Q4 for corporate events), and slow months may produce little or no income. The retirement contribution should match the total year’s income, not any single month. A planner who earns $40,000 from May to September and $15,000 the rest of the year can still contribute based on the full $55,000 (net of expenses), making the December 31 deadline for electing the employee deferral the relevant date, not the monthly cash flow.
A solo event planner (no W-2 employees, subcontractors are fine) uses the Solo 401(k): $24,500 employee deferral (elect by December 31) plus 20% of net SE income as an employer contribution (deadline is the tax filing date, including extensions). The deferral has to be elected by December 31, but a sole proprietor can deposit it as late as the tax filing deadline, including extensions, so the cash doesn’t have to be there by year-end. For planners with seasonal income, setting aside funds during peak season still makes that deposit easier. The employer contribution can be made as late as October 15 (with extension), giving the planner months after year-end to accumulate the funds. Event planners who hire day-of coordinators, assistants, or other support staff as W-2 employees cannot use the Solo 401(k) and must use a SIMPLE IRA or Safe Harbor 401(k). Event planners who use only 1099 subcontractors (freelance coordinators, freelance designers) can still use the Solo 401(k).
How much can an event planner contribute?
What about years with significantly lower income?
Event planners may have a down year (fewer events, a major cancellation, entering the business). The Solo 401(k) contribution is entirely discretionary: the planner can contribute anywhere from $0 to the maximum. In a year with $40,000 in net profit, the planner might contribute $10,000 (employee deferral only) rather than the full $24,500, preserving cash for living expenses.
The flexibility of the Solo 401(k) is its biggest advantage for variable-income businesses: no mandatory contribution, no penalty for contributing less than the maximum, and the ability to adjust year by year.
Related guides:
- Event Planning Deductions Vendor Costs
- Event Planning Entity Structure Scorp
- Event Planning Estimated Taxes Deposits
- Event Planning Worker Classification Vendors
What happens if I contribute more than the allowed limit to my retirement plan?
Excess contributions are subject to a 6% excise tax each year they remain in the account (IRC 4973 for IRAs, IRC 4979 for 401(k) plans). For IRAs, you can withdraw the excess plus attributable earnings before the tax filing deadline (including extensions) to avoid the penalty for that year. For solo 401(k) plans, excess deferrals must be corrected by April 15 of the following year. Excess employer contributions can be corrected through plan amendment. The contribution limits are aggregate across all plans of the same type, so if you contribute to both an employer 401(k) and a solo 401(k), the employee deferral limit is shared.
Does an event planner need Solo 401(k) cash by December 31?
No. In an existing Solo 401(k), the employee deferral has to be elected by December 31, but IRS Publication 560 lets an owner deposit it by the return due date with extensions. For a sole proprietor who files Form 4868 for 2025, that’s October 15, 2026, which gives a planner the slow winter months to fund contributions from a strong wedding season.
The election is what can’t wait, so make it before year-end even if the deposit comes later. The employer contribution runs to the same extended date.
- If you never opened a plan in 2025, a sole proprietor with no employees can adopt one after year-end and still make 2025 deferrals, but only until April 15, 2026. An extension doesn’t help there.
- A planner with W-2 day-of staff on a SIMPLE IRA has to set it up to take effect by October 1 of the year. Staff deferrals go in no later than 30 days after the end of the month they’re withheld.
How do variable income years affect my retirement plan contributions?
Most retirement plans allow you to vary contributions year by year. A SEP-IRA lets you contribute anywhere from 0% to 20% of net self-employment income (the effective rate for a self-employed owner), so in a strong year you can maximize contributions and in a slow year contribute nothing. A solo 401(k) gives you more flexibility: the employee deferral ($23,000 in 2024, $30,500 if 50+) is a fixed election, but you choose the amount each year. The employer profit-sharing portion (up to 25% of compensation) is also discretionary. Event planning income can swing dramatically, with a few large contracts making or breaking the year. Contributing more in high-income years and less in lean years is standard practice, not a red flag. Set your contribution level after your year-end financials are clear, and make the contribution by your tax filing deadline (including extensions for SEP-IRAs).
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Yarik Yarosh, CPA. "Retirement Plans for Event Planners: Solo 401(k) and Managing Feast-or-Famine Income." Blue Cloud CPA, September 5, 2026, updated September 23, 2026. https://bluecloudcpa.com/guides/event-planning-retirement-plans
This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.