Self-Employed Retirement Plans Corpus Christi, TX

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Self-employed retirement plans Corpus Christi, TX. The independence of running your own company in Corpus Christi, TX is one of the greatest advantages of having a self-directed career. That said, this independence sometimes brings with potential drawbacks, especially regarding planning for retirement, 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 would be better off looking into other possibilities. In addition to achieving a more comfortable retirement, working with a financial advisor in Corpus Christi, TX to create your self-employed retirement plan offers significant tax advantages that enable both you and your business to thrive.

Few Corpus Christi, TX investment consulting and retirement planning firms understand the needs of self-employed individuals quite like Correct Capital. Our founder's father was a small business owner himself (learn more about our story here), and Correct Capital have a rich history of helping businesses with their retirement planning needs. We recognize that your professional and personal aspirations go far beyond just monetary concerns, and we work tirelessly to create customized solutions to meet your unique goals. Keep reading to learn more about your self-employed retirement plan options in Corpus Christi, TX, or reach out to Correct Capital at 877-930-401k or contact us online to speak with a entrepreneurial financial advisor in Corpus Christi, TX today.


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Why Corpus Christi, TX 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. With customizable contribution options to significant tax savings, working with a financial advisor in Corpus Christi, TX allows you to customize your retirement plan to align with 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 flexibility to adjust how much you save:

  • Customizable Contributions: Save extra during successful years and scale back when revenues are down, so that your plan fits your cash flow.
  • Roth Options: Choosing a Roth Solo 401(k) lets you handle taxes upfront, allowing you to withdraw your savings tax-free down the road—a smart decision if you believe your tax rate is likely to rise in the future.

Save Money on Taxes

Retirement plans for self-employed individuals provide significant tax benefits:

  • Tax-Deductible Contributions: Contributions to a SIMPLE IRA reduce what you owe in taxes, allowing you to keep more of your hard-earned money.
  • Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to grow.
  • State-Specific Incentives: In some states, you could qualify for extra credits as a business owner. These regional incentives help make these plans even more valuable.
  • Retirement Savings Contributions Credit (Saver’s Credit): Eligible individuals 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 determined by your investment strategy:

  • Diversified Portfolios: Allocating your investments across varied stocks, bonds, and alternatives is a smart way to mitigate financial risk while still growing your retirement fund.
  • Emergency Back-Up: Supplementing your retirement savings with a dedicated business safety net helps you avoid dipping into savings during financial hardships and incurring penalties.

Plan for the Future of Your Corpus Christi, TX Business

A thoughtful retirement strategy can assist you think through what’s next with your Corpus Christi, TX business:

  • Selling Your Business: When selling your business, accounts such as SEP IRAs or Solo 401(k)s remain your personal assets and are not part of the sale. These savings can provide the financial stability you’ll need during retirement. Keep in mind that while the sale of a business usually creates a capital gain, contributions to retirement accounts are restricted by contribution limits (e.g., up to $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, including catch-up contributions, depending on plan details).
  • Minimizing Taxes: Making the most of retirement savings helps lower the taxes you are required to pay when you pass on your business.
  • Succession Planning: Whether you’re transferring ownership, your retirement accounts offer a stable foundation through the transition. You may also partner with a financial advisor who specializes in succession planning and retirement accounts to reduce taxes during the sale.

With the right retirement plan, you can take control of 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 Corpus Christi, TX Now?

Time is one of the most important factors for building your retirement fund. Starting early not only helps you grow a larger nest egg but also reduces the pressure of playing catch-up as you get older. This is why it makes sense to begin today:


The Cost of Waiting

Putting off saving for retirement may cause a substantial impact on the total you’ll have when you stop working. The main reason is compound interest—the financial principle where your investments grow, and those returns, subsequently, generate even more returns. The greater time span your money has to grow, the more significant the impact of this growth.

Example: Two individuals, Alex and Taylor are both self-employed professionals. They each aim to save $500,000 for retirement by age 65:

  • Alex starts saving $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, assuming 7% annual return:

  • Alex invests $180,000 and ends up with $691,184.39*.
  • Taylor invests $195,500 but accumulates just $474,367.78*.

How Early Contributions Grow

Regular, modest investments contributed over time can lead to significant growth. Consider this example showing the effect of compound interest:

  • Starting at age 25: If you invest $200 per month in a retirement plan with an average annual return of 7%, you’ll end up with $497,303.29* by age 65.
  • Starting at age 35: Saving the same $200 per month would result in only $235,412.97* by age 65—a gap of over $260,000, simply due to a 10-year delay.

The earlier you begin, the lower your annual savings needs each year to reach your retirement goals.

*These calculations represent estimates generated with 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. The scenarios provided are intended as illustrative examples and do not guarantee future performance. Actual results may vary based on elements like market conditions, fees, and personal factors. We recommend consulting a financial advisor for personalized advice.

Take Control of Your Financial Future

If you’re self-employed in Corpus Christi, TX, it might seem easier to focus more on reinvesting in your business rather than saving for retirement. That said, beginning a plan now allows you to:

  • Take advantage of tax-deferred growth or tax-free withdrawals in the future.
  • Benefit from contribution flexibility that adapt to your income.
  • Build a financial cushion that ensures stability, no matter how your business evolves.

The sooner you start, the less you’ll be required to worry about catching up later in life. Saving for retirement now means gaining control over your financial future and giving yourself the opportunity to turn your attention to your goals—both for your golden years and your Corpus Christi, TX business.

Types of Self-Employed Retirement Plans

A variety of retirement savings options open for self-employed individuals in Corpus Christi, TX, each offering its own advantages and considerations. A financial advisor is available to help you evaluate the pros and cons of each option and identify the one best suited for your needs. In most cases, your self-employed retirement plan options in Corpus Christi, TX include:


Traditional or Roth IRA

Plan Overview: IRAs, or Individual Retirement Accounts, are long-term savings plans that include distinct tax benefits. In a traditional IRA, you can usually deduct your contributions from taxable income, and investment earnings grow tax-deferred, but withdrawals in retirement are taxed as income. In contrast, Roth IRAs require contributions using income already taxed, but retirement withdrawals that qualify, including earnings, are exempt from taxes. In both accounts, withdrawals come without penalties as long as you are at least 59½.

Eligibility: While many retirement plans, such as 401(k)s, are tied to employment, both 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: The Simplified Employee Pension IRA offers a way to save for retirement that allows entrepreneurs to save a percentage of their net business profits. Contributions are strictly employer contributions an employer, so, as a sole proprietor, you (the employee) cannot make additional contributions beyond the 25% you (the employer) allocate. If you have employees, you are obligated to contribute the same amount for them as you do for yourself. You may choose to contribute a fixed dollar figure or a percentage of wages to employee accounts. This type of plan is a good option for companies with fluctuating revenue streams. Compared to other retirement options, SEP IRAs don’t have costly startup or administrative fees.

SEPs function like traditional IRAs, where contributions are made with pre-tax money and money withdrawn is subject to income tax.

Eligibility: Employers of any type, including self-employed individuals can set up 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: A Solo 401(k) plan, sometimes referred to as an Individual 401(k) or one-participant 401(k) plan, is a savings option for the self-employed intended for businesses with no employees or when the sole employee is your spouse. Solo 401(k)s operate much like standard 401(k) plans, and enable contributions as both an employer and an employee with pre-tax money. This offers more savings versus 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 have the same tax benefits as their IRA contribution counterparts.

Eligibility: Only business owners and their spouses may establish 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 self-employment income, up to 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.
  • 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 deferrals you made.

Total contributions are capped at $70,000, or $77,500 for those aged 50 and older (in 2025), $81,250 for individuals turning 60-63 in 2025.

Individual Defined Benefit Plan

Plan Overview: The defined benefit plan offers a structured retirement solution that provides a pre-established payout to business owners upon retirement. Unlike defined contribution plans mentioned above, a defined benefit plan doesn't fluctuate based on investment returns, but allows self-employed individuals to know what they'll get in retirement. This strategy is ideal for wealthier entrepreneurs who aim to accumulate a substantial amount for retirement and can commit to making sizeable contributions. Contributions are tax deferred, and withdrawals are taxable as income in retirement.

Eligibility: Self-employed professionals running an owner-only business or with a small staff of under five may establish an individual defined benefit plan, but it's typically advised for those over 50 who earn at least $250,000 a year. In most cases, good candidates for defined benefit plans tend to be:

  • Partners or owners who want to invest more than $70,000 (or $77,500 for those aged 50+)
  • Companies already contributing 3-4% and are willing to do more
  • Companies that have demonstrated consistent profit patterns
  • Business leaders over age 40 who wish to accelerate savings or increase their retirement contributions rapidly

Contribution Limits: The maximum allowable contribution requires calculation from an actuary determined by your income, age, and retirement goals. Contribution limits are adjusted each year.

The Importance of a Financial Advisor in Corpus Christi, TX for Your Self-Employed Retirement Plan

Partnering with an advisor in Corpus Christi, TX specialized in self-employed retirement plans is an invaluable resource for self-employed individuals. They have the expertise to help guide you through the challenges of retirement planning and design a tailored strategy that reflects your aspirations. Your advisor in Corpus Christi, TX will review your finances, determine how much risk you’re comfortable with, and assist you in choosing wisely about saving and investing for retirement. Part of what we do for you involves:

    • Help you choose a plan that aligns with your objectives and circumstances
    • Further adapt the plan to your needs even further
    • Create a written plan that complies with IRS regulations
    • Set up an asset trust plan
    • 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 optimizing your social security benefits

Self-Employed Retirement Plans in Corpus Christi, TX: Correct Capital's Process

Self-employed individuals in Corpus Christi, TX who lack the time, interest, or knowledge to manage their self-employed retirement plan themselves often feel overwhelmed when faced with their available plans. With Correct Capital, our Corpus Christi, TX financial advisors handle the lion's share of your savings plan setup for you, working to make meeting your retirement goals as hassle-free as possible for you. We will guide you in creating your self-employed retirement plan in just four steps:

  • Schedule a Call: A quick 20-minute call is all it takes, a member of our advisor team can determine if we're suited to your needs for you and your business. This brief introduction allows us to understand what you're looking for with zero commitment or extensive time commitment on your part.
  • Gather Information: Once we mutually decide to continue, we'll gather information, including your employee count, your existing financial picture, and your future objectives. This helps us create a custom plan designed just for you.
  • Review Your Plan: Once we've developed a plan using the information you provide, we'll sit down with you and go over your plan in detail to help you fully grasp it and explain its fit to your circumstances.
  • Implementation and Monitoring: After we agree on your plan, we'll implement the necessary steps so you can start saving. Throughout our relationship, we'll meet with you and monitor your plan to keep it tailored to your evolving circumstances.

Our Corpus Christi, TX financial advisors and retirement plan consultants serve as fiduciary advisors, who are obligated to they are committed by law and ethics to prioritize your needs above all else.

Other financial advisory services we offer in Corpus Christi, TX include:

Self-Employed Retirement Plans | Financial Advisors | Retirement Consultants | Correct Capital Wealth Management

Call Correct Capital for Your Self-Employed Retirement Plan in Corpus Christi, TX

To you, your business is more than "just a business", and your Corpus Christi, TX financial advisors should provide more than basic financial recommendations. With Correct Capital, we make it a priority to understand our clients and their businesses to provide personalized self-employed retirement plans. We offer all our Corpus Christi, TX clients 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.


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