Self-employed retirement plans Augusta-Richmond County, GA. The flexibility of being your own boss in Augusta-Richmond County, GA is one of the best aspects of being self-employed. However, this freedom sometimes brings with certain challenges, particularly in terms of building your retirement fund, as you don't have the option of 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 enjoying a more comfortable retirement, seeking advice from a financial advisor in Augusta-Richmond County, GA to set up your self-employed retirement plan offers significant tax advantages that allow both you and your business to thrive.
Few Augusta-Richmond County, 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 (learn more about our story here), and we have a rich history of supporting entrepreneurs with their retirement planning needs. We know that your business and retirement aspirations extend well past basic numbers, and we work tirelessly to provide tailored solutions that reflect your objectives. Read on to discover about your self-employed retirement plan options in Augusta-Richmond County, GA, or call Correct Capital at 877-930-401k or contact us online to consult with a small business financial advisor in Augusta-Richmond County, GA today.
Why Augusta-Richmond County, GA Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals are essential for preparing you for the future, they also offer immediate benefits today. Offering flexibility in contributions to significant tax savings, consulting a financial advisor in Augusta-Richmond County, GA enables you to customize your retirement plan to suit your specific needs.
Flexibility That Fits Your Income
If your income changes annually, a plan like a SEP IRA or Solo 401(k) provides the flexibility to modify how much you save:
- Customizable Contributions: Set aside more during high-income years and reduce savings when revenues are down, so your plan works with your financial situation.
- Roth Options: Opting for a Roth Solo 401(k) lets you settle taxes at the time of contribution, so you can withdraw your savings tax-free down the road—a smart decision if you anticipate your tax rate to be higher in the future.
Save Money on Taxes
Retirement plans for self-employed individuals provide powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a Solo 401(k) shrink your tax liability, helping you keep more of your hard-earned money.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, giving your money more time to accumulate.
- State-Specific Incentives: Depending on where you live, you could qualify for state-specific credits as a self-employed individual. These regional incentives help 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 put into a retirement plan, further reducing your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement isn’t only about how much you save—it’s also about how you invest:
- Diversified Portfolios: Allocating your investments across a mix of stocks, bonds, and other assets serves to mitigate financial risk while still growing your retirement fund.
- Emergency Back-Up: Combining your retirement strategy and a dedicated business safety net ensures you don’t tapping into your nest egg during challenging periods and incurring penalties.
Plan for the Future of Your Augusta-Richmond County, GA Business
A thoughtful retirement strategy can assist you prepare for what’s next with your Augusta-Richmond County, GA business:
- Selling Your Business: For those considering a sale, plans like SEP IRAs or Solo 401(k)s remain your personal assets and don’t transfer with the business. These plans can provide the steady income you’ll need in the future. Keep in mind that while the sale of a business usually creates a capital gain, retirement plan contributions are subject to yearly maximums (e.g., a maximum of $7,000 for IRAs or up to $70,000 for Solo 401(k)s, with catch-up contributions, based on plan compensation).
- Minimizing Taxes: Using retirement contributions wisely minimizes the taxes you’ll owe when you pass on your business.
- Succession Planning: For those winding down or handing over their business, your retirement accounts offer the funds you need as you make this shift. You might want to partner with a financial advisor experienced in both succession and retirement strategies to help with taxes on the sale.
With the best-fit retirement strategy, 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 Augusta-Richmond County, GA Now?
Time remains one of the most important resources when it comes to saving for retirement. Getting a head start not only lets you accumulate a bigger financial cushion but also minimizes the financial burden of catching up later in life. The following are reasons why it pays to take action now:
The Cost of Waiting
Waiting to start your retirement fund may cause a major impact on the total you’ll have when you retire. The primary reason is compound interest—the powerful process where your investments earn returns, and those returns, in turn, generate even more returns. The longer your money has to grow, the greater the benefit of this growth.
Example: Taylor and Alex are both entrepreneurs. 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 puts away $7,500 annually to make up for lost time.
By age 65, with an assumption of 7% annual return:
- Alex invests $180,000 and achieves a total of $691,184.39*.
- Taylor contributes $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Even modest contributions contributed over time may result in substantial growth. Here’s a simple scenario showing the effect of compound interest:
- Starting at age 25: If you invest $200 per month in a retirement plan with an projected return of 7%, you’ll grow to approximately $497,303.29* by age 65.
- Starting at age 35: Saving the same $200 per month yields only $235,412.97* by age 65—a difference of over $260,000, just from a 10-year delay.
The earlier you begin, the lower your annual savings needs each year to reach your retirement goals.
*The numbers shown in this scenario represent estimates generated with 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. The scenarios provided are for illustrative purposes only and do not guarantee future performance. Actual results may vary based on elements like market conditions, fees, and personal factors. Be sure to speak with a financial advisor for custom recommendations.
Take Control of Your Financial Future
As a self-employed person in Augusta-Richmond County, GA, it is often the case that you prioritize reinvesting in your business over saving for retirement. However, initiating a plan now enables you to:
- Benefit from tax-free future growth or withdrawals without taxes down the road.
- Take advantage of adjustable savings that change with your cash flow.
- Build a long-term safety measure that ensures stability, no matter how your business develops.
Getting started now, the less you’ll be required to worry about playing catch-up later in life. Taking steps toward your retirement goals today means taking control of your financial future and creating for yourself the freedom to turn your attention to your dreams—both for your retirement years and your Augusta-Richmond County, GA business.
Types of Self-Employed Retirement Plans
There are several retirement savings options open for those working for themselves in Augusta-Richmond County, GA, each offering its own advantages and considerations. A financial advisor will guide you to learn about the benefits and drawbacks of each choice and determine the one best suited for your circumstances. In most cases, your self-employed retirement plan options in Augusta-Richmond County, GA consist of:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent retirement savings vehicles that provide distinct tax benefits. In a conventional IRA, contributions are typically tax-deductible, and investment earnings grow tax-deferred, but withdrawals in retirement are taxable. In contrast, with Roth IRAs, you contribute from post-tax earnings, but eligible distributions during retirement, including earnings, are exempt from taxes. In both cases, withdrawals are penalty-free if you are at least 59½.
Eligibility: While many retirement plans, such as 401(k)s, are tied to employment, IRAs, including traditional and Roth options are open to those with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set 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 is a retirement plan that enables entrepreneurs to save a percentage of their net business profits. Contributions must come from an employer, so, as a self-employed individual, you (the employee) are limited to contributions from the employer role beyond the 25% you (the employer) have designated. If you have employees, you must 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 entrepreneurs facing periods of inconsistent earnings. Compared to other retirement options, SEP IRAs don’t have expensive setup or ongoing fees.
SEPs work like conventional IRAs, where contributions are made with pre-tax money and money withdrawn is subject to income tax.
Eligibility: Any employer, including the self-employed can open 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 contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: The Solo 401(k), sometimes referred to as an Individual 401(k) or one-participant 401(k) plan, is a savings option for the self-employed intended for companies that have no employees or if the only employee is your spouse. Solo 401(k)s function similarly to employer-sponsored 401(k) plans, and allow you to contribute as both an employee or an employer with pre-tax money. This offers more savings compared to SEPs or IRAs; however, the increased savings potential may be offset by more limited investment options. With this type of plan, you can make either traditional or Roth deferrals, which have the same tax benefits as their IRA contribution counterparts.
Eligibility: This plan is exclusively for business owners and their spouses can set up and contribute to a solo 401(k).
Contribution Limits: As a self-employed individual with a solo 401(k) plan, you can make two types of contributions:
- Employee contributions of up to 100% of your earned income from self-employment, up to the annual contribution limit. In 2025, those limits are $23,500, or $31,000 if you're over 50, or $34,750 for those who turn 60-63 in 2025.
- Profit-sharing contributions (as an employer) must not surpass 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.
The total contribution cannot exceed $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: A defined benefit plan represents a type of retirement plan that delivers a fixed, predetermined benefit to self-employed individuals upon retirement. Unlike defined contribution plans mentioned above, a defined benefit plan doesn't fluctuate based on investment returns, but enables participants to determine the precise amount they'll receive in retirement. This plan is best suited for high-earning professionals who aim to accumulate a substantial amount for retirement and are prepared to contribute substantial contributions. Contributions offer tax-deferred growth, and withdrawals incur taxes as income in retirement.
Eligibility: Any self-employed individual running an owner-only business or employing fewer than five people may establish an individual defined benefit plan, but it's typically recommended for people above age 50 who earn at least $250,000 a year. Generally, good candidates for defined benefit plans tend to be:
- Business owners or partners who aim to deposit more than $70,000 (or $77,500 for those aged 50+)
- Organizations that already put in 3-4% but are open to increasing contributions
- Organizations showing consistent profit patterns
- Partners or owners over age 40 who desire to "catch up" or boost savings within a short timeframe
Contribution Limits: The contribution limit is calculated by an actuary based on your financial situation, age, and savings targets. Allowable contributions are adjusted each year.
The Importance of a Financial Advisor in Augusta-Richmond County, GA for Your Self-Employed Retirement Plan
Partnering with an advisor in Augusta-Richmond County, GA specialized in self-employed retirement plans serves as an important asset for those working for themselves. They bring the skills needed to navigate the complexities of retirement planning and develop a customized plan that matches your objectives. A financial advisor in Augusta-Richmond County, GA will assess where you stand financially, identify your risk preferences, and help you in choosing wisely about saving and investing for retirement. A key part of what we do for you features:
- Assist in selecting a plan that aligns with your objectives and circumstances
- Tailor the plan to fit you personally even further
- Create a written plan that complies with IRS regulations
- Arrange a trust plan for assets
- Help you understand the plan's terms
- Review and modify your plan to keep it aligned with your goals
- Offer continued financial education and guidance to help you navigate your retirement journey
- Increase your retirement income by making the most of your social security
Self-Employed Retirement Plans in Augusta-Richmond County, GA: Correct Capital's Process
Entrepreneurs in Augusta-Richmond County, GA who lack the time, interest, or knowledge to handle their retirement savings strategy independently often feel overwhelmed when faced with their available plans. With Correct Capital, our Augusta-Richmond County, GA financial advisors manage the majority of your retirement strategy for you, and strive to ensure meeting your retirement goals as easy as possible for you. We will guide you in creating your self-employed retirement plan in four simple steps:
- Schedule a Call: A quick 20-minute call is all it takes, a member of our advisor team will assess if we're a good fit for you and your business. This initial call allows us to learn about your needs with no obligation or significant effort on your part.
- Gather Information: Should we agree to proceed, we'll gather information, including your employee count, your current financial situation, and your long-term savings targets. This helps us create a custom plan suited specifically for your needs.
- Review Your Plan: When we finalize a plan based on the information you provide, we'll meet with you and go over your plan step by step to ensure you understand it and understand how it best correlates to your needs.
- Implementation and Monitoring: When we finalize on your plan, we'll set everything up so you can begin contributing. As time goes on, we'll meet with you and monitor your plan to make sure it remains aligned with your goals.
Our Augusta-Richmond County, GA financial advisors and retirement plan consultants are fiduciary advisors, who are obligated to they are committed by law and ethics to do what's in your best interest.
Other financial advisory services we offer in Augusta-Richmond County, 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 Augusta-Richmond County, GA
Your business isn't "just a business" to you, and your Augusta-Richmond County, GA financial advisors need to offer more than just good financial guidance. At Correct Capital, we focus on building a relationship with our clients and their businesses to deliver tailored self-employed retirement plans. To every client in Augusta-Richmond County, GA, we provide our I.O.U. promise: all guidance we provide will be independent, objective, and unbiased. To get started on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.
