Self-employed retirement plans Atlanta, GA. The independence of owning your own business in Atlanta, GA offers many benefits of working for yourself. That said, this freedom often comes with certain challenges, especially in terms of retirement savings, because you don't have access to retirement programs through an employer. Only 13% of self-employed individuals have a workplace retirement plan, but many could benefit from 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 offers significant tax advantages that enable both you and your business to thrive.
Few Atlanta, GA wealth management and retirement planning firms understand the needs of small business owners quite like Correct Capital. Our founder's father was a small business owner himself (check out our story here), and our firm take pride in supporting entrepreneurs with their retirement planning needs. We understand that your business and retirement aspirations go far beyond just monetary concerns, and we work tirelessly to create customized solutions to meet your unique goals. 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 self-employed financial advisor in Atlanta, GA today.
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 provide tangible benefits today. From flexible contributions to considerable tax savings, consulting a financial advisor in Atlanta, GA enables you to design your retirement plan to fit your unique financial situation.
Flexibility That Fits Your Income
For those with fluctuating income from year to year, a plan like a SEP IRA or Solo 401(k) gives you the freedom to tailor how much you save:
- Customizable Contributions: Contribute more during high-income years and reduce savings when your earnings dip, so your plan aligns with your financial situation.
- Roth Options: Opting for a Roth Solo 401(k) lets you handle taxes upfront, enabling you to withdraw without tax penalties in the future—an advantageous choice if you anticipate your tax rate is likely to rise in the future.
Save Money on Taxes
Self-employed retirement plans offer significant tax benefits:
- Tax-Deductible Contributions: Contributions to a Solo 401(k) reduce what you owe in taxes, helping you keep more of your hard-earned money.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, providing your money more time to accumulate.
- State-Specific Incentives: Depending on where you live, you could qualify for additional credits as a sole proprietor. These local incentives make these plans even more valuable.
- Retirement Savings Contributions Credit (Saver’s Credit): Those who meet the requirements can apply for a credit of up to 50% of the first $2,000 they contribute a retirement plan, helping to lower your tax bill even more.
Protect Your Savings With Smart Investments
Planning for a safe retirement isn’t only about how much you save—it’s also about how you invest:
- Diversified Portfolios: Allocating your investments across varied stocks, bonds, and alternatives serves to reduce risk while continuing to build your savings.
- Emergency Back-Up: Combining your retirement strategy and a financial buffer for your business helps you avoid using your retirement funds during tough times and incurring penalties.
Plan for the Future of Your Atlanta, GA Business
Retirement planning can assist you prepare for what’s next with your Atlanta, GA business:
- Selling Your Business: For those considering a sale, plans like SEP IRAs or Solo 401(k)s stay in your name and won’t be included in the sale. These savings ensure the reliable income you’ll need during retirement. Remember that while selling a business often leads to a capital gain, retirement plan contributions are capped at annual limits (e.g., up to $7,000 for IRAs or as much as $70,000 for Solo 401(k)s, with catch-up contributions, based on plan compensation).
- Minimizing Taxes: Using retirement contributions wisely can reduce the taxes you are required to pay when you transfer your business.
- Succession Planning: If you’re passing the business on, your retirement savings offer a stable foundation through the transition. You might want to work with 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, reduce your tax burden, and establish a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Atlanta, GA Now?
There’s no denying that time is one of the most valuable assets when it comes to saving for retirement. Beginning sooner rather than later not only allows you to build a larger nest egg but also lowers the financial burden of playing catch-up as you get older. This is why it is beneficial to start now:
The Cost of Waiting
Putting off saving for retirement could lead to a major impact on the savings you’ll have when you retire. The primary reason is compound interest—the financial principle where your investments grow, and those returns, then, accumulate even more returns. The more time your money has to grow, the greater the benefit of this growth.
Example: Taylor and Alex are both self-employed professionals. Both of them want to save $500,000 for retirement by age 65:
- Alex begins contributing $5,000 annually at age 30.
- Taylor waits until age 40 but saves $7,500 annually to catch up.
By age 65, using a projected 7% annual return:
- Alex puts in $180,000 and achieves a total of $691,184.39*.
- Taylor invests $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Regular, modest investments contributed over time can lead to significant growth. Take a look at this scenario showing the power of consistent growth:
- Starting at age 25: If you invest $200 per month in a retirement plan with an projected return of 7%, you’ll accumulate $497,303.29* by age 65.
- Starting at age 35: Investing the same $200 per month leaves you with only $235,412.97* by age 65—a shortfall of over $260,000, just from a 10-year delay.
Saving early, the less effort required each year to meet your retirement goals.
*The figures provided in this example are based on estimates calculated using NerdWallet’s Compound Interest Calculator, assuming a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. This information is for illustrative purposes only and cannot predict actual future outcomes. Outcomes may change based on factors such as market conditions, fees, and personal factors. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
As a self-employed person in Atlanta, GA, it can be tempting to put more emphasis on reinvesting in your business over saving for retirement. That said, starting a plan now enables you to:
- Leverage tax-deferred growth or penalty-free withdrawals later on.
- Take advantage of contribution flexibility that adapt to your cash flow.
- Build a safety net that provides security, no matter how your business evolves.
Getting started now, the less you’ll need to worry about making up for lost time later in life. Saving for retirement now means taking control of your financial future and allowing yourself the opportunity to turn your attention to your dreams—both for your future retirement and your Atlanta, GA business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options open for entrepreneurs in Atlanta, GA, each offering its own pros and cons. A financial advisor is available to help you learn about the pros and cons of each choice and choose the one most suitable for your needs. Generally speaking, your self-employed retirement plan options in Atlanta, GA are:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent long-term savings plans that include specific tax advantages. In a conventional IRA, contributions are typically tax-deductible, and investment earnings grow tax-deferred, but money taken out during retirement are subject to income tax. In contrast, with Roth IRAs, you contribute from post-tax earnings, but eligible distributions during retirement, including earnings, are exempt from taxes. In both accounts, withdrawals come without penalties if you are at least 59½.
Eligibility: Unlike plans linked to your job, traditional and Roth IRAs are open to those with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are capped at $7,000, or $8,000 if you qualify for catch-up contributions.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA serves as a retirement savings option that permits entrepreneurs to contribute a percentage of their net earnings. Contributions can only be made by an employer, so, as a self-employed individual, you (the employee) would not be able to contribute more than the 25% you (the employer) already contributed. If you have employees, it's required to contribute the same amount for them as you do for yourself. You have the flexibility to contribute a fixed dollar figure or a percentage of wages to employee accounts. A SEP IRA works well for companies with periods of inconsistent earnings. Unlike other plans, SEP IRAs lack expensive setup or ongoing fees.
SEPs operate like conventional IRAs, where you contribute pre-tax dollars and withdrawals are taxed as income.
Eligibility: Any employer, including the self-employed can establish a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA are capped at the lower of:
- 25% of compensation, or
- $70,000 for 2025
If you’re self-employed, the amount eligible to be contributed is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, sometimes referred to as an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan designed for businesses with no employees or when the sole employee is your spouse. Solo 401(k)s are similar to standard 401(k) plans, and allow you to contribute as both the employer and the employee with pre-tax money. This provides more savings than SEPs or IRAs; however, the extra savings options often come with more limited investment options. Using a solo 401(k), you can make either traditional or Roth deferrals, which share the same tax benefits as their IRA contribution counterparts.
Eligibility: Solo 401(k)s are available solely to business owners and their spouses may establish and contribute to a solo 401(k).
Contribution Limits: If you are self-employed with a solo 401(k) plan, you have the ability to make two types of contributions:
- Elective deferrals (as an employee) of up to 100% of your self-employed earnings, up 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.
- Employer profit-sharing contributions (as an employer) are limited to 25% of your net earnings from self-employment, which is defined as net profit minus half of your self-employment tax and the deferrals you made.
Your combined contributions must not surpass $70,000, or $77,500 if you're over age 50 (for 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan offers a structured retirement solution that guarantees a pre-established payout to self-employed individuals upon retirement. In contrast to the plans discussed earlier, this plan is not influenced by market performance, but enables participants to determine what they'll receive in retirement. This plan is ideal for higher-income entrepreneurs who want to save a substantial amount for retirement and can commit to making sizeable contributions. Contributions grow tax-free until withdrawal, and withdrawals are taxed as income in retirement.
Eligibility: Self-employed professionals running an owner-only business or with a small staff of under five are eligible to open an individual defined benefit plan, but it's generally recommended for those over 50 who make $250,000 or more annually. Typically, good candidates for defined benefit plans tend to be:
- Entrepreneurs who aim to deposit more than $70,000 (or $77,500 for those aged 50+)
- Organizations that already put in 3-4% and are willing to do more
- Organizations showing consistent profit patterns
- Business leaders over age 40 who wish to accelerate savings or boost savings within a short timeframe
Contribution Limits: The maximum allowable contribution requires calculation from an actuary based on your earnings, age, and retirement objectives. Contribution limits are updated yearly.
The Importance of a Financial Advisor in Atlanta, GA for Your Self-Employed Retirement Plan
Working with a financial advisor in Atlanta, GA focused on self-employed retirement strategies is an essential partner for entrepreneurs. They bring the skills needed to guide you through the challenges of retirement planning and develop a personalized approach that matches your objectives. An expert in your area will assess where you stand financially, determine how much risk you’re comfortable with, and assist you in choosing wisely about saving and investing for retirement. A key part of what we do for you involves:
- Guide you in choosing a plan that suits your unique requirements
- Customize the plan to fit you personally even further
- Adopt a written plan that complies with IRS regulations
- Set up an asset trust plan
- Help you understand the plan's terms
- Track and fine-tune your plan when necessary
- Provide ongoing education and advice as you continue on the road to retirement
- 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 don’t have the time or expertise to manage their own retirement planning independently can become overwhelmed when faced with their options. At Correct Capital, our Atlanta, GA financial advisors manage the majority of your savings plan setup for you, to help make meeting your future savings targets as straightforward as possible for you. We will guide you in creating your self-employed retirement plan in a quick, four-step process:
- Schedule a Call: It only takes 20 minutes, a member of our advisor team can help understand if we're suited to your needs for you and your business. This short conversation helps us learn about your needs with no obligation or significant effort on your part.
- Gather Information: If we both decide to move forward, we'll request information, including how many employees you have (if any), your present financial standing, and your long-term savings targets. This allows us to put together a custom plan suited specifically for your needs.
- Review Your Plan: When we finalize a plan based on the information you provide, we'll schedule a meeting and review your plan thoroughly to make sure it's clear and show how it aligns with your goals.
- Implementation and Monitoring: After we agree on your plan, we'll set everything up so you can initiate your savings journey. Over the course of our partnership, we'll check in and monitor your plan to keep it tailored to your evolving circumstances.
Our Atlanta, GA financial advisors and retirement plan consultants are fiduciary advisors, meaning they are committed by law and ethics to do what's in your best interest.
Other financial advisory services we offer in Atlanta, GA include:
- Financial Planning for Business Owners
- Comprehensive Financial Planning
- Retirement Income Planning
- Investment Planning
- Retirement Financial Planning
- Independent Financial Advisor
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
Call Correct Capital for Your Self-Employed Retirement Plan in Atlanta, GA
You don't see your business as "just a business", and your Atlanta, GA financial advisors need to offer more than basic financial recommendations. At Correct Capital, we make it a priority to understand our clients and their businesses to deliver tailored self-employed retirement plans. All our clients in Atlanta, GA benefit from our I.O.U. promise: all of the advice you get from us will be independent, objective, and unbiased. To take the first step on your self-employment retirement plan, reach out to Correct Capital at 877-930-401k or contact us online.
