Self-employed retirement plans Atlanta, GA. The flexibility of owning your own business in Atlanta, GA is one of the best aspects of working for yourself. However, this independence sometimes brings with potential drawbacks, notably in terms of retirement savings, since you don't have the benefit of a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, but many should consider exploring their options. In addition to having a financially stable retirement, working with a financial advisor in Atlanta, GA to establish your self-employed retirement plan delivers significant tax advantages that enable you to move your business forward.
Few Atlanta, GA wealth management and retirement planning firms are as attuned to the requirements of small business owners as well as Correct Capital. Our company’s founder grew up with a father who was a small business owner himself (read more of our story here), and our firm take pride in helping businesses with their retirement planning needs. We understand that your goals for your business and retirement extend well past simple financial figures, and we are dedicated to provide tailored solutions aligned with your vision. Continue exploring to find out about your self-employed retirement plan options in Atlanta, GA, or reach out to Correct Capital at 877-930-401k or contact us online to talk to a small business financial advisor in Atlanta, GA today.
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Why Atlanta, GA Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals not only prepare you for the future, they also deliver tangible benefits today. From flexible contributions to substantial tax savings, consulting a financial advisor in Atlanta, GA allows you to customize your retirement plan to suit your individual circumstances.
Flexibility That Fits Your Income
When your earnings vary from year to year, a plan like a SEP IRA or Solo 401(k) offers the option to adjust how much you save:
- Customizable Contributions: Save extra during successful years and cut back when income is lower, so your plan fits your financial situation.
- Roth Options: A Roth Solo 401(k) lets you handle taxes upfront, enabling you to withdraw your savings tax-free down the road—a smart decision if you anticipate your tax rate will increase in the future.
Save Money on Taxes
Retirement plans for self-employed individuals offer significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA reduce what you owe in taxes, allowing you to keep more of your earnings.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, which gives your money more time to accumulate.
- State-Specific Incentives: In some states, you might access state-specific deductions as a sole proprietor. These regional incentives make these plans even more advantageous.
- Retirement Savings Contributions Credit (Saver’s Credit): Those who meet the requirements can claim a tax credit of up to 50% of the first $2,000 contributed a retirement plan, helping to lower your tax bill even more.
Protect Your Savings With Smart Investments
Creating a stable future requires more than how much you save—it’s also about how you invest:
- Diversified Portfolios: Spreading your investments across different asset classes like stocks and bonds is a smart way to minimize exposure to risk while continuing to build your savings.
- Emergency Back-Up: Supplementing your retirement savings with a dedicated business safety net helps you avoid tapping into your nest egg during financial hardships and facing tax penalties.
Plan for the Future of Your Atlanta, GA Business
Preparing for retirement also helps you think through what’s next with your Atlanta, GA business:
- Selling Your Business: If you’re planning to sell, plans like SEP IRAs or Solo 401(k)s remain yours and are not part of the sale. These plans can provide the financial stability you’ll need in the future. Remember that while the sale of a business usually creates a capital gain, retirement plan contributions are restricted by contribution limits (e.g., a maximum of $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, factoring in catch-up contributions, based on plan compensation).
- Minimizing Taxes: Strategically planning your contributions minimizes the taxes you’ll owe when you sell your business.
- Succession Planning: If you’re passing the business on, your retirement savings provide the funds you need through the transition. You might want to seek advice from a financial advisor who specializes in succession planning and retirement accounts to reduce taxes associated with the transaction.
With the right retirement plan, you manage your financial future, cut down your tax obligations, and establish a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Atlanta, GA Now?
Time is one of the most important resources for building your retirement fund. Starting early not only lets you accumulate a bigger financial cushion but also lowers the financial burden of playing catch-up as you get older. The following are reasons why it pays to take action now:
The Cost of Waiting
Putting off saving for retirement may cause a major impact on the savings you’ll have when you stop working. The main reason is compound interest—the financial principle where your investments generate earnings, and those returns, then, generate even more returns. The more time your money has to grow, the larger the impact of this growth.
Example: Taylor and Alex are both self-employed individuals. Both of them want to save $500,000 for retirement by age 65:
- Alex initiates savings of $5,000 annually at age 30.
- Taylor waits until age 40 but contributes $7,500 annually to bridge the gap.
By age 65, using a projected 7% annual return:
- Alex invests $180,000 and ends up with $691,184.39*.
- Taylor contributes $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Regular, modest investments contributed over time may result in substantial growth. Take a look at this scenario showing the impact of consistent growth:
- Starting at age 25: Putting aside $200 per month in a retirement plan with an average annual return of 7%, you’ll grow to approximately $497,303.29* by age 65.
- Starting at age 35: Contributing the same $200 per month leaves you with only $235,412.97* by age 65—a difference of over $260,000, simply due to a 10-year delay.
Saving early, the lower your annual savings needs each year to meet your retirement goals.
*The figures provided in this example are estimates derived from NerdWallet’s Compound Interest Calculator, assuming a 7% annual return. The contributions were calculated by multiplying the annual deposit amount by the total number of years contributions were made. These examples are meant to provide general guidance and do not guarantee future performance. Outcomes may change based on elements like market conditions, fees, and personal factors. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
If you’re self-employed in Atlanta, GA, it might seem easier to prioritize reinvesting in your business instead of saving for retirement. However, starting a plan now allows you to:
- Benefit from tax-free future growth or withdrawals without taxes down the road.
- Take advantage of adjustable savings that align with your earnings.
- Establish a financial cushion that offers peace of mind, no matter how your business develops.
Getting started now, the less you’ll need to worry about playing catch-up later in life. Building your retirement savings today means managing your financial future and allowing yourself the freedom to concentrate on your goals—both for your retirement years and your Atlanta, GA business.
Types of Self-Employed Retirement Plans
There are several retirement savings options available for those working for themselves in Atlanta, GA, each offering its own pros and cons. A financial advisor will guide you to understand the benefits and drawbacks of each option and identify the one best suited for your needs. In most cases, your self-employed retirement plan options in Atlanta, GA include:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent financial tools for retirement that include specific tax advantages. In a traditional IRA, contributions are typically tax-deductible, and earnings grow without immediate taxation, but retirement distributions are subject to income tax. In contrast, Roth IRAs require contributions are made with after-tax income, but qualified withdrawals in retirement, including earnings, are tax-free. In both types of accounts, withdrawals don’t incur penalties if you are at least 59½.
Eligibility: Unlike plans linked to your job, traditional and Roth IRAs are available to anyone with a source of income.
Contribution Limits: For 2025, annual contribution limits for IRAs remain $7,000, or $8,000 if you're 50 or older.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA offers a way to save for retirement that permits entrepreneurs to save a percentage of their net business profits. Contributions can only be made by an employer, so, as a sole proprietor, you (the employee) are limited to contributions from the employer role beyond the 25% you (the employer) already contributed. If you have employees, you must contribute the same amount for them as you do for yourself. You may choose to contribute a flat-dollar amount or a percentage of wages to employee accounts. SEP IRAs may be ideal for entrepreneurs facing fluctuating revenue streams. In contrast to some alternatives, SEP IRAs are free of expensive setup or ongoing fees.
SEPs operate like conventional IRAs, where contributions are made with pre-tax money and retirement distributions are taxable.
Eligibility: Employers of any type, including self-employed individuals can open a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA must not exceed:
- 25% of compensation, or
- $70,000 for 2025
For self-employed individuals, the amount eligible to be contributed is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, commonly known as an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan intended for companies that have no employees or when the sole employee is your spouse. Solo 401(k)s operate much like employer-sponsored 401(k) plans, and enable contributions as both an employee or an employer with pre-tax money. This allows for more savings versus SEPs or IRAs; however, the additional opportunities often come with more limited investment options. Using a solo 401(k), you can make either traditional or Roth deferrals, which have the same tax benefits as their IRA contribution counterparts.
Eligibility: Only business owners and their spouses are eligible to open and contribute to a solo 401(k).
Contribution Limits: For self-employed individuals with a solo 401(k) plan, you are allowed to make two types of contributions:
- Elective deferrals (as an employee) of up to 100% of your earned income from self-employment, subject to the annual contribution limit. In 2025, those limits are $23,500, or $31,000 if you are 50 or older, or $34,750 for those who turn 60-63 in 2025.
- Contributions as an employer (as an employer) are limited to 25% of your net self-employment income, which is defined as net profit minus half of your self-employment tax and the deferrals you made.
Total contributions are capped at $70,000, or $77,500 for individuals aged 50+ (for 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan offers a structured retirement solution that provides a fixed, predetermined benefit to self-employed individuals upon retirement. In contrast to the plans discussed earlier, a defined benefit plan doesn't fluctuate based on investment returns, but enables participants to determine exactly how much they'll have in retirement. This option is best suited for high-earning professionals who are focused on saving a substantial amount for retirement and are willing to make larger deposits. Contributions are tax deferred, and withdrawals are taxable as income in retirement.
Eligibility: Self-employed professionals operating a solo business or with a small staff of under five may establish an individual defined benefit plan, but it's generally recommended for people above age 50 who generate a minimum of $250,000 yearly. Typically, good candidates for defined benefit plans are:
- Partners or owners who desire to contribute more than $70,000 (or $77,500 for those aged 50+)
- Companies already contributing 3-4% with plans to contribute more
- Businesses with proven consistent profit patterns
- Business leaders over age 40 who aim to quickly build retirement savings or increase their retirement contributions rapidly
Contribution Limits: The contribution limit must be determined by an actuary determined by your financial situation, age, and savings targets. Contribution limits change annually.
The Importance of a Financial Advisor in Atlanta, GA for Your Self-Employed Retirement Plan
A financial advisor in Atlanta, GA specialized in self-employed retirement plans serves as an important asset for those working for themselves. They offer the knowledge to assist navigate the complexities of retirement planning and craft a tailored strategy that aligns with your goals. An expert in your area will evaluate your financial situation, determine how much risk you’re comfortable with, and help you in making informed decisions about saving and investing for retirement. Part of what we do for you includes:
- Help you choose a plan that suits your unique requirements
- Customize the plan to your needs even further
- Formalize a plan in writing that complies with IRS regulations
- Organize a trust plan to manage your assets
- Ensure you comprehend the plan's terms
- Track and fine-tune your plan to keep it aligned with your goals
- Deliver continuous support and financial insights throughout your retirement planning process
- Maximize what you receive in retirement by optimizing your social security benefits
Self-Employed Retirement Plans in Atlanta, GA: Correct Capital's Process
Self-employed individuals in Atlanta, GA who aren’t equipped with the time or understanding to handle their own retirement planning independently can become overwhelmed by their options. At Correct Capital, our Atlanta, GA financial advisors handle the majority of your retirement strategy for you, working to make meeting your retirement goals as easy as possible for you. We will guide you in creating your self-employed retirement plan in a quick, four-step process:
- Schedule a Call: A quick 20-minute call is all it takes, a member of our advisor team will assess if our services align for you and your business. This initial call allows us to get a sense of your goals with no obligation or extensive time commitment on your part.
- Gather Information: Once we mutually decide to continue, we'll ask for information, including how many employees you have (if any), your existing financial picture, and your long-term savings targets. This allows us to put together a tailored approach suited specifically for your needs.
- Review Your Plan: After we put together a plan based on the information you provide, we'll meet with you and discuss your plan thoroughly to help you fully grasp it and explain its fit to your circumstances.
- Implementation and Monitoring: When we finalize on your plan, we'll put everything in place so you can initiate your savings journey. Throughout our relationship, we'll have regular meetings and track your progress to ensure it stays suited to your needs.
Our Atlanta, GA financial advisors and retirement plan consultants act as fiduciary advisors, meaning they are committed by law and ethics to prioritize your needs above all else.
Other financial advisory services we offer in Atlanta, GA include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
- Fiduciary Financial Advisor
Call Correct Capital for Your Self-Employed Retirement Plan in Atlanta, GA
To you, your business is more than "just a business", and your Atlanta, GA financial advisors must deliver more than just good financial guidance. Correct Capital takes pride in, we take the time to get to know our clients and their businesses to provide tailored self-employed retirement plans. To every client in Atlanta, GA, we provide our I.O.U. promise: everything we recommend will be independent, objective, and unbiased. To take the first step on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.
