Self-employed retirement plans Augusta-Richmond County, GA. The freedom of being your own boss in Augusta-Richmond County, GA is one of the best aspects of having a self-directed career. That said, this freedom sometimes brings with potential drawbacks, especially when it comes to retirement savings, as you don't have access to employer-sponsored retirement plans. Only 13% of self-employed individuals have a workplace retirement plan, although many would be better off looking into other possibilities. In addition to achieving a more secure 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 help your business to grow and succeed.
Few Augusta-Richmond County, GA investment consulting and retirement planning firms are as attuned to the requirements of small business owners as well as Correct Capital. Our founder's father was a small business owner himself (read more of our story here), and we have a rich history of assisting business owners in their retirement planning needs. We know that your business and retirement aspirations go far beyond basic numbers, and we work tirelessly to offer personalized solutions to meet your unique goals. 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 talk to a small business financial advisor in Augusta-Richmond County, GA today.
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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 tangible benefits today. From flexible contributions to substantial tax savings, working with a financial advisor in Augusta-Richmond County, GA enables you to create your retirement plan to suit your unique financial situation.
Flexibility That Fits Your Income
When your earnings vary annually, a plan like a SEP IRA or Solo 401(k) offers the freedom to tailor how much you save:
- Customizable Contributions: Set aside more during high-income years and scale back when income is lower, so your plan aligns with your cash flow.
- Roth Options: A Roth Solo 401(k) lets you settle taxes at the time of contribution, allowing you to withdraw without tax penalties in the future—a smart decision if you believe your tax rate to be higher in the future.
Save Money on Taxes
Plans designed for the self-employed offer significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA lower your taxable income, helping you keep more of your income.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, which gives your money more time to accumulate.
- State-Specific Incentives: Based on your location, you might access extra deductions as a sole proprietor. These local incentives make these plans even more advantageous.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can claim a tax 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
Building a secure retirement isn’t only about how much you save—it’s also linked to the way you invest:
- Diversified Portfolios: Distributing your investments across varied asset classes like stocks and bonds is a smart way to reduce risk while helping to grow your savings.
- Emergency Back-Up: Pairing your retirement plan with a business emergency fund helps you avoid dipping into savings during tough times and risking extra costs.
Plan for the Future of Your Augusta-Richmond County, GA Business
Retirement planning 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 stay in your name and don’t transfer with the business. These plans ensure the financial stability you’ll need later on. Keep in mind that while selling a business often leads to a capital gain, retirement plan contributions are capped at annual limits (e.g., as much as $7,000 for IRAs or up to $70,000 for Solo 401(k)s, including catch-up contributions, based on plan compensation).
- Minimizing Taxes: Using retirement contributions wisely can reduce 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 provide the funds you need during the change. You might want to partner with a financial advisor with expertise in succession and retirement planning to help with taxes during the sale.
With the right retirement plan, you gain control over your financial future, lower your tax bill, and create a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Augusta-Richmond County, GA Now?
There’s no denying that time is one of the most important factors in retirement planning. Getting a head start not only allows you to build a more substantial retirement fund but also lowers the pressure of playing catch-up as you get older. This is why it pays to take action now:
The Cost of Waiting
Putting off saving for retirement can have a significant impact on the total you’ll have when you reach retirement age. The main reason is compound interest—the financial principle where your investments generate earnings, and those returns, then, accumulate even more returns. The longer your money has to grow, the larger the impact of compounding.
Example: Alex and Taylor are both entrepreneurs. Their shared goal is to save $500,000 for retirement by age 65:
- Alex begins contributing $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, using a projected 7% annual return:
- Alex contributes $180,000 and ends up with $691,184.39*.
- Taylor contributes $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Small, consistent savings contributed over time often create substantial growth. Here’s a simple scenario showing the power of consistent growth:
- Starting at age 25: If you invest $200 per month in a retirement plan with an expected yearly growth rate of 7%, you’ll accumulate $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, simply due to a 10-year delay.
Saving early, the less effort required each year to reach your retirement goals.
*The numbers shown in this scenario represent estimates generated with NerdWallet’s Compound Interest Calculator, with the assumption of a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. The scenarios provided are meant to provide general guidance and are not a promise of future results. Outcomes may change due to factors such as market conditions, fees, and individual circumstances. We recommend consulting a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
If you’re self-employed in Augusta-Richmond County, GA, it might seem easier to prioritize reinvesting in your business instead of saving for retirement. However, initiating a plan now allows you to:
- Leverage tax-free future growth or penalty-free withdrawals down the road.
- Benefit from flexible contributions that change with your earnings.
- Create a long-term safety measure that offers peace of mind, no matter how your business changes.
The sooner you start, the less you’ll need to worry about playing catch-up later in life. Saving for retirement now means gaining control over your financial future and giving yourself the freedom to focus on your objectives—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 with its own advantages and considerations. A financial advisor will guide you to understand the advantages and disadvantages of each choice and choose the one best suited for your circumstances. Generally speaking, your self-employed retirement plan options in Augusta-Richmond County, GA consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are long-term savings plans that include distinct tax benefits. In a standard IRA, the money you contribute is often tax-deductible, and earnings grow without immediate taxation, but withdrawals in retirement are taxable. In contrast, with Roth IRAs, you contribute using income already taxed, but eligible distributions during retirement, including earnings, are tax-free. In both cases, withdrawals are penalty-free if you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, both traditional and Roth IRAs are accessible for individuals with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 if you're 50 or older.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: SEP IRAs serves as a retirement savings option that permits self-employed individuals to set aside a portion of their self-employment income. Contributions can only be made by an employer, so, as a self-employed individual, you (the employee) would not be able to contribute beyond the 25% you (the employer) have designated. If you have employees, it's required to contribute the same amount for them as you do for yourself. It's your choice whether to contribute a flat-dollar amount or a percentage of wages to employee accounts. A SEP IRA works well for companies with cycles of high revenue and low revenue. In contrast to some alternatives, SEP IRAs are free of the high fees associated with starting or maintaining other plans.
SEPs operate like standard IRAs, where the contributions are tax-deferred and withdrawals are taxed as income.
Eligibility: Employers of any type, including self-employed individuals can set up a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA are the lesser of:
- 25% of compensation, or
- $70,000 for 2025
As a self-employed person, the amount eligible to be contributed is based on a special calculation.
Solo 401(k)
Plan Overview: The Solo 401(k), commonly known as an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan intended for companies that have no employees or if the only employee is your spouse. These plans function similarly to employer-sponsored 401(k) plans, and let you make contributions as both an employer and an employee with pre-tax money. This provides more savings than SEPs or IRAs; however, the increased savings potential often come with more constrained investment avenues. With this type of plan, you can make either traditional or Roth deferrals, which offer the same tax benefits as their IRA contribution counterparts.
Eligibility: Solo 401(k)s are available solely to business owners and their spouses are eligible to open 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:
- Elective deferrals (as an employee) of up to 100% of your earned income from self-employment, capped at the annual contribution limit. In 2025, those limits are $23,500, or $31,000 for those aged 50 and above, or $34,750 for individuals aged 60-63 in 2025.
- Contributions as an employer (as an employer) must not surpass 25% of your adjusted self-employment income, which is calculated as net profits less half of your self-employment tax and the elective deferrals you made.
The total contribution cannot exceed $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 provides a set amount to entrepreneurs upon retirement. In contrast to the plans discussed earlier, a defined benefit plan doesn't fluctuate based on investment returns, but lets individuals clearly understand exactly how much they'll get in retirement. This option is recommended for higher-income self-employed individuals who aim to accumulate a significant sum for retirement and are willing to make larger deposits. Contributions offer tax-deferred growth, and withdrawals incur taxes as income during retirement.
Eligibility: Self-employed professionals operating a solo business or with less than five employees can open an individual defined benefit plan, but it's generally recommended for individuals aged 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 individuals 50 and older)
- Companies already contributing 3-4% but are open to increasing contributions
- Businesses with proven consistent profit patterns
- Business leaders over age 40 who wish to accelerate savings or increase their retirement contributions rapidly
Contribution Limits: The cap on contributions requires calculation from an actuary using your financial situation, age, and savings targets. Contribution limits change annually.
The Importance of a Financial Advisor in Augusta-Richmond County, GA for Your Self-Employed Retirement Plan
Working with a financial advisor in Augusta-Richmond County, GA experienced with retirement plans for the self-employed serves as an essential partner for entrepreneurs. They bring the skills needed to understand the intricacies of saving for retirement and develop a tailored strategy that reflects your aspirations. Your advisor in Augusta-Richmond County, GA will evaluate your financial situation, determine how much risk you’re comfortable with, and assist you in selecting the best options about saving and investing for retirement. Included in what we do for you involves:
- Help you choose a plan that aligns with your objectives and circumstances
- Customize the plan to fit you personally even further
- Adopt a written plan in accordance with IRS guidelines
- Arrange a trust plan for assets
- Make sure you understand the plan's terms
- Review and modify your plan as needed
- Provide ongoing education and advice throughout your retirement planning process
- Boost your retirement earnings by making the most of your social security
Self-Employed Retirement Plans in Augusta-Richmond County, GA: Correct Capital's Process
Augusta-Richmond County, GA business owners who don’t have the time or expertise to handle their retirement savings strategy on their own often feel overwhelmed when faced with their available plans. Through our team at Correct Capital, our Augusta-Richmond County, GA financial advisors manage the bulk of your retirement strategy for you, to help make meeting your future savings targets as hassle-free 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 can determine if we're a good fit for you and your business. This brief introduction helps us understand what you're looking for with no pressure or major time investment on your part.
- Gather Information: Once we mutually decide to continue, we'll request information, including whether you have employees, your existing financial picture, and your future objectives. This enables us to craft a personalized strategy designed just for you.
- Review Your Plan: Once we've developed a plan based on the information you provide, we'll schedule a meeting and go over your plan step by step to help you fully grasp it and show how it aligns with your goals.
- Implementation and Monitoring: Once we've agreed on your plan, we'll implement the necessary steps so you can initiate your savings journey. Throughout our relationship, we'll have regular meetings and track your progress to keep it tailored to your evolving circumstances.
Our Augusta-Richmond County, GA financial advisors and retirement plan consultants serve as fiduciary advisors, meaning they are required by law and ethical standards to act in your best interest.
Other financial advisory services we offer in Augusta-Richmond County, 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 Augusta-Richmond County, GA
You don't see your business as "just a business", and your Augusta-Richmond County, GA financial advisors need to offer more than just good financial guidance. At Correct Capital, we make it a priority to understand our clients and their businesses to deliver customized self-employed retirement plans. All our clients in Augusta-Richmond County, 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, call Correct Capital today at 877-930-401k or contact us online.
