Self-employed retirement plans Columbus, GA. The flexibility of being your own boss in Columbus, GA is one of the greatest advantages of being self-employed. However, this flexibility can come with certain challenges, notably in terms of retirement savings, because 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 looking into other possibilities. In addition to achieving a financially stable retirement, working with a financial advisor in Columbus, GA to create your self-employed retirement plan delivers significant tax advantages that help both you and your business to thrive.
Few Columbus, GA wealth management and retirement planning firms understand the needs of small business owners as well as Correct Capital. Our founder's father was a small business owner himself (check out our story here), and our firm are deeply experienced in supporting entrepreneurs with their retirement planning needs. We know that your goals for your business and retirement extend well past just monetary concerns, and we are dedicated to provide personalized solutions aligned with your vision. Keep reading to learn more about your self-employed retirement plan options in Columbus, GA, or give us a call at Correct Capital at 877-930-401k or contact us online to talk to a self-employed financial advisor in Columbus, GA today.
Why Columbus, GA Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also deliver real benefits today. From flexible contributions to substantial tax savings, working with a financial advisor in Columbus, GA allows you to create your retirement plan to fit your unique financial situation.
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: Save extra during successful years and reduce savings when your earnings dip, so that your plan fits your financial situation.
- Roth Options: 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 believe your tax rate will increase in the future.
Save Money on Taxes
Retirement plans for self-employed individuals provide powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA shrink your tax liability, allowing you to keep more of your hard-earned money.
- Tax-Deferred Growth: You won't pay taxes on investment growth until you withdraw it, giving your money more time to compound.
- State-Specific Incentives: In some states, you may be eligible for extra tax breaks as a business owner. These regional incentives help make these plans even more beneficial.
- 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
Planning for a safe retirement goes beyond just how much you save—it’s also linked to the way you invest:
- Diversified Portfolios: Distributing your investments across varied stocks, bonds, and alternatives is a smart way to reduce risk while still growing your retirement fund.
- Emergency Back-Up: Combining your retirement strategy and a business emergency fund prevents you from using your retirement funds during tough times and facing tax penalties.
Plan for the Future of Your Columbus, GA Business
Preparing for retirement can assist you think through what’s next with your Columbus, GA business:
- Selling Your Business: For those considering a sale, retirement accounts like SEP IRAs and Solo 401(k)s remain your personal assets and don’t transfer with the business. These savings offer the financial stability you’ll need later on. Keep in mind that while the sale of a business usually creates a capital gain, deposits into these plans are restricted by contribution limits (e.g., as much as $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, factoring in catch-up contributions, according to plan rules).
- Minimizing Taxes: Strategically planning your contributions minimizes the taxes you might face when you pass on your business.
- Succession Planning: If you’re passing the business on, your nest egg offer financial security as you make this shift. You may also seek advice from a financial advisor with expertise in succession and retirement planning to reduce taxes associated with the transaction.
With the proper savings strategy, you can take control of your financial future, cut down your tax obligations, and create a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Columbus, GA Now?
Time is one of the most important assets when it comes to saving for retirement. Getting a head start not only lets you accumulate a more substantial retirement fund but also reduces the financial burden 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 could lead to a substantial impact on the savings you’ll have when you retire. The biggest reason is compound interest—the financial principle where your investments generate earnings, and those returns, in turn, accumulate even more returns. The more time your money has to grow, the greater the benefit of this compounding process.
Example: Alex and Taylor are both entrepreneurs. Both of them want to save $500,000 for retirement by age 65:
- Alex starts saving $5,000 annually at age 30.
- Taylor delays savings until age 40 but contributes $7,500 annually to bridge the gap.
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 only ends up with $474,367.78*.
How Early Contributions Grow
Even modest contributions invested steadily may result in substantial growth. Consider this example showing the impact 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 grow to approximately $497,303.29* by age 65.
- Starting at age 35: Saving the same $200 per month leaves you with only $235,412.97* by age 65—a shortfall of over $260,000, all because of a 10-year delay.
Saving early, the less effort required each year to meet your retirement goals.
*These calculations are estimates calculated using NerdWallet’s Compound Interest Calculator, based on a 7% annual return. The contributions were calculated by multiplying the annual deposit amount by the total number of years contributions were made. This information is for illustrative purposes only and are not a promise of future results. Your individual results may differ depending on factors such as market conditions, fees, and individual circumstances. Always consult a financial advisor for custom recommendations.
Take Control of Your Financial Future
If you’re self-employed in Columbus, GA, it is often the case that you prioritize reinvesting in your business rather than saving for retirement. However, starting a plan now allows you to:
- Take advantage of tax-deferred growth or tax-free withdrawals in the future.
- Enjoy contribution flexibility that align with your cash flow.
- Establish a safety net that offers peace of mind, no matter how your business evolves.
The sooner you start, the less you’ll need to worry about making up for lost time 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 future retirement and your Columbus, GA business.
Types of Self-Employed Retirement Plans
There are several retirement savings options available for those working for themselves in Columbus, GA, each providing its own pros and cons. A financial advisor can help you understand the pros and cons of each option and choose the one best suited for your unique situation. Typically, your self-employed retirement plan options in Columbus, GA include:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent long-term savings plans that provide distinct tax benefits. In a traditional IRA, the money you contribute is often tax-deductible, and investment earnings grow tax-deferred, but retirement distributions are taxed as income. In contrast, Roth IRA contributions from post-tax earnings, but retirement withdrawals that qualify, including earnings, are not taxed. In both accounts, withdrawals don’t incur penalties as long as you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, traditional and Roth IRAs are available to anyone with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 for those aged 50+.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: The Simplified Employee Pension IRA serves as a retirement savings option that allows self-employed individuals to save a percentage of their net business profits. Contributions are strictly employer contributions an employer, so, as a sole proprietor, you (the employee) would not be able to contribute more than the 25% you (the employer) allocate. If you have employees, you must 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. This type of plan may be ideal for businesses that experience cycles of high revenue and low revenue. In contrast to some alternatives, SEP IRAs don’t have expensive setup or ongoing fees.
SEPs operate like traditional IRAs, where you contribute pre-tax dollars and money withdrawn is subject to income tax.
Eligibility: Employers of any type, including self-employed individuals can establish a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA are the lesser of:
- 25% of compensation, or
- $70,000 for 2025
For self-employed individuals, the contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: The Solo 401(k), also called an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan meant 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 enable contributions as both an employee or an employer with pre-tax money. This offers more savings than SEPs or IRAs; however, the additional opportunities can be balanced by more limited investment options. Using a solo 401(k), you can make either traditional or Roth deferrals, which offer the same tax benefits as their IRA contribution counterparts.
Eligibility: This plan is exclusively for business owners and their spouses may establish and contribute to a solo 401(k).
Contribution Limits: For self-employed individuals with a solo 401(k) plan, you have the ability to make two types of contributions:
- Employee contributions of up to 100% of your earned income from self-employment, capped at the annual contribution limit. The contribution limits for 2025 include $23,500, or $31,000 if you are 50 or older, or $34,750 if you attain age 60-63 in 2025.
- Profit-sharing contributions (as an employer) are limited to 25% of your net self-employment income, which is calculated as net profits less half of your self-employment tax and the deferrals you made.
Total contributions are capped at $70,000, or $77,500 for those aged 50 and older (in 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan is a retirement option that guarantees 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 higher-income professionals who want to save a significant sum for retirement and can commit to making larger deposits. Contributions offer tax-deferred growth, and withdrawals incur taxes as income upon retirement.
Eligibility: Self-employed professionals managing a one-person company or employing fewer than five people are eligible to open an individual defined benefit plan, but it's most commonly suggested for those over 50 who earn at least $250,000 a year. Typically, good candidates for defined benefit plans include:
- Entrepreneurs who aim to deposit more than $70,000 (or $77,500 if over age 50)
- Organizations that already put in 3-4% and are willing to do more
- Businesses with proven consistent profit patterns
- Partners or owners over age 40 who desire to "catch up" or accelerate the retirement savings
Contribution Limits: The maximum allowable contribution is calculated by an actuary determined by your financial situation, age, and savings targets. Allowable contributions are adjusted each year.
The Importance of a Financial Advisor in Columbus, GA for Your Self-Employed Retirement Plan
A financial advisor in Columbus, GA specialized in self-employed retirement plans can be an invaluable resource for self-employed individuals. They have the expertise to help navigate the complexities of retirement planning and craft a tailored strategy that aligns with your goals. Your advisor in Columbus, GA will review your finances, identify your risk preferences, and help you in making informed decisions about saving and investing for retirement. Included in 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
- Create a written plan that complies with IRS regulations
- Arrange a trust plan for assets
- Ensure you comprehend the plan's terms
- Review and modify your plan as needed
- Deliver continuous support and financial insights as you continue on the road to retirement
- Boost your retirement earnings by making the most of your social security
Self-Employed Retirement Plans in Columbus, GA: Correct Capital's Process
Entrepreneurs in Columbus, GA who lack the time, interest, or knowledge to manage their own retirement planning themselves often feel overwhelmed when faced with their available plans. Through our team at Correct Capital, our Columbus, GA financial advisors take on the bulk of your savings plan setup for you, to help make meeting your future savings targets as easy as possible for you. We can help you get set up 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 will assess if we're suited to your needs for you and your business. This initial call allows us to get a sense of your goals with zero commitment or major time investment on your part.
- Gather Information: If we both decide to move forward, we'll request information, including your employee count, your current financial situation, and your retirement goals. This enables us to craft a personalized strategy that aligns with your goals.
- Review Your Plan: When we finalize a plan based on the information you provide, we'll sit down with you and review your plan in detail to make sure it's clear 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 initiate your savings journey. Over the course of our partnership, we'll check in and review your strategy to ensure it stays suited to your needs.
Our Columbus, GA financial advisors and retirement plan consultants serve as fiduciary advisors, meaning they are legally and ethically bound to act in your best interest.
Other financial advisory services we offer in Columbus, 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 Columbus, GA
Your business isn't "just a business" to you, and your Columbus, GA financial advisors must deliver more than just good financial guidance. At Correct Capital, we take the time to get to know our clients and their businesses to provide tailored self-employed retirement plans. To every client in Columbus, GA, we provide our I.O.U. promise: all of the advice you get from us will be independent, objective, and unbiased. To get started on your self-employment retirement plan, reach out to Correct Capital at 877-930-401k or contact us online.
