Retirement might seem like the last priority for small-business owners. But funding your retirement plan can save 30 to 40 cents on the dollar because of tax breaks.

If you started a business during the last few years, and then watched too much of your earnings evaporate at tax time, you might be able to change that.

If you aren't putting any money into aretirementsavings plan for your business, you are probably giving more than is necessary to Uncle Sam and short-changing your future too. And that is easy to fix.

It might seem like a mistake to stash anything away forretirementnow when your business is demanding so much cash and time. But becauseretirementsavings plans give you a tax break upfront when you contribute money to them, you can often stretch your money further simply by using one of these plans.

"Aretirementplan is critical," said Robert Keebler, a Green Bay, Wis., certified public accountant. "For every dollar you put away, you can save about 30 to 40 cents in taxes."

And once your money is in aretirementplan, Uncle Sam won't touch it until youretireand start pulling money out for living expenses after age 59 {. The money remains off-limits to taxes untilretirement, a much better alternative than keeping it in a bank savings account, where interest is taxed annually.

If you are a sole proprietor with no employees, setting up aretirementplan is almost as easy as opening a savings account. So you don't have to worry about another headache added to the demands of the day. "You go to a broker like TD Ameritrade or a mutualfundcompany like Fidelity, tell them you want to set up an individual 401(k), and that's it," said Denise Appleby, chief executive of ApplebyRetirementConsulting of Grayson, Ga. "It's simple."

The best plan for sheltering as much money as possible from taxes, she said, would be a solo 401(k). The amount you can save is based on a formula applied to your compensation.

For example, say you earn $100,000. Just like any 401(k), you will be able to contribute up to $17,000 as an employee in 2012. And anything you contribute will lower your taxable income. And, as a sole proprietor, you get an extra benefit. As the employer, you can also contribute about $18,000 through the company to your own 401(k), Appleby said. Your business then gets the benefit of reducing taxes by taking an $18,000 deduction.

So as you combine the $17,000 and $18,000, you come up with about a $35,000 contribution to yourretirement, and you get tax benefits on the entire amount. Try the calculator at http://www.tinyurl.com/smallbiz401k.

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Retirement strategy for small-business owners: Grab the tax break