Self-employed retirement plans Corpus Christi, TX. The flexibility of owning your own business in Corpus Christi, TX is one of the best aspects of having a self-directed career. That said, this flexibility sometimes brings with potential drawbacks, especially in terms of planning for retirement, since you don't have access to retirement programs through an employer. Only 13% of self-employed individuals have a workplace retirement plan, yet countless would be better off looking into other possibilities. In addition to having a more secure retirement, partnering with a financial advisor in Corpus Christi, TX to establish your self-employed retirement plan delivers significant tax advantages that allow both you and your business to thrive.
Few Corpus Christi, TX wealth management and retirement planning firms are as attuned to the requirements of self-employed individuals quite like Correct Capital. Our company’s founder grew up with a father who 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 understand that your goals for your business and retirement aren’t limited to basic numbers, and we are dedicated to create tailored solutions that reflect your objectives. Continue exploring to find out about your self-employed retirement plan options in Corpus Christi, TX, or call Correct Capital at 877-930-401k or contact us online to consult with a self-employed financial advisor in Corpus Christi, TX today.
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. Offering flexibility in contributions to significant tax savings, consulting a financial advisor in Corpus Christi, TX helps you customize your retirement plan to suit your unique financial situation.
Flexibility That Fits Your Income
If your income changes annually, a plan like a SEP IRA or Solo 401(k) gives you the flexibility to adjust how much you save:
- Customizable Contributions: Contribute more during successful years and reduce savings when revenues are down, so your plan aligns with your financial situation.
- Roth Options: Choosing a Roth Solo 401(k) lets you handle taxes upfront, enabling you to withdraw tax-free later—an advantageous choice if you anticipate your tax rate will increase in the future.
Save Money on Taxes
Self-employed retirement plans deliver significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA shrink your tax liability, helping you keep more of your income.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to accumulate.
- State-Specific Incentives: In some states, you could qualify for additional credits as a sole proprietor. These state-level incentives can make these plans even more advantageous.
- 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 contributed 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 linked to the way you invest:
- Diversified Portfolios: Allocating your investments across different stocks, bonds, and alternatives is a smart way to reduce risk while continuing to build your savings.
- Emergency Back-Up: Pairing your retirement plan with a financial buffer for your business prevents you from tapping into your nest egg 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 yours and are not part of the sale. These accounts can provide the steady income you’ll need during retirement. Remember that while selling a business often leads to a capital gain, deposits into these plans 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: Strategically planning your contributions minimizes the taxes you might face when you pass on your business.
- Succession Planning: Whether you’re transferring ownership, your nest egg ensure a stable foundation through the transition. You might want to partner with a financial advisor with expertise in succession and retirement planning to minimize tax burdens associated with the transaction.
With the best-fit retirement strategy, you gain control over your financial future, cut down your tax obligations, and build a solid base 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 crucial assets for building your retirement fund. Starting early not only lets you accumulate a bigger financial cushion but also reduces the financial burden of saving aggressively in the future. Here’s why it makes sense to begin today:
The Cost of Waiting
Waiting to start your retirement fund can have a significant impact on the total you’ll have when you stop working. The biggest reason is compound interest—the concept where your investments earn returns, and those returns, subsequently, generate even more returns. The greater time span your money has to grow, the greater the benefit of compounding.
Example: Two individuals, Alex and Taylor are both entrepreneurs. Their shared goal is to save $500,000 for retirement by age 65:
- Alex initiates savings of $5,000 annually at age 30.
- Taylor delays savings until age 40 but contributes $7,500 annually to catch up.
By age 65, using a projected 7% annual return:
- Alex contributes $180,000 and ends up with $691,184.39*.
- Taylor puts in $195,500 but only ends up with $474,367.78*.
How Early Contributions Grow
Even modest contributions contributed over time often create impressive growth. Take a look at this scenario showing the effect of compound interest:
- Starting at age 25: By investing $200 per month in a retirement plan with an expected yearly growth rate of 7%, you’ll end up with $497,303.29* by age 65.
- Starting at age 35: Contributing the same $200 per month yields only $235,412.97* by age 65—a gap of over $260,000, simply due to a 10-year delay.
Starting sooner, the lower your annual savings needs each year to reach your retirement goals.
*These calculations are estimates calculated using NerdWallet’s Compound Interest Calculator, based on a 7% annual return. These calculations involved multiplying yearly deposits by the years contributed. This information is for illustrative purposes only and cannot predict actual future outcomes. Outcomes may change due to variables including market conditions, fees, and your unique situation. Be sure to speak with a financial advisor for personalized advice.
Take Control of Your Financial Future
As a self-employed person in Corpus Christi, TX, it is often the case that you focus more on reinvesting in your business rather than saving for retirement. Even so, beginning a plan now gives you the chance to:
- Take advantage of tax-free future growth or tax-free withdrawals down the road.
- Enjoy contribution flexibility that change with your earnings.
- Create a financial cushion that ensures stability, no matter how your business develops.
Getting started now, the less you’ll need to worry about playing catch-up later in life. Taking steps toward your retirement goals today means gaining control over your financial future and allowing yourself the opportunity to focus on your goals—both for your golden years and your Corpus Christi, TX business.
Types of Self-Employed Retirement Plans
There are several retirement savings options open for self-employed individuals in Corpus Christi, TX, each offering its own benefits and trade-offs. A financial advisor will guide you to evaluate the advantages and disadvantages of each plan and determine the one ideal for your circumstances. Generally speaking, your self-employed retirement plan options in Corpus Christi, TX consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are retirement savings vehicles that include key tax perks. In a conventional IRA, the money you contribute is often tax-deductible, and investment earnings grow tax-deferred, but money taken out during retirement are taxed as income. In contrast, Roth IRA contributions from post-tax earnings, but eligible distributions during retirement, including earnings, are not taxed. In both types of accounts, withdrawals come without penalties provided 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 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: A Simplified Employee Pension (SEP) IRA is a retirement plan that permits entrepreneurs to contribute a percentage of their net earnings. Contributions must come from an employer, so, as a self-employed individual, you (the employee) would not be able to contribute more than 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. You may choose to contribute a fixed dollar figure or a percentage of wages to employee accounts. This type of plan may be ideal for companies with cycles of high revenue and low revenue. In contrast to some alternatives, SEP IRAs don’t have costly startup or administrative fees.
SEPs function like conventional IRAs, where you contribute pre-tax dollars and withdrawals are taxed as income.
Eligibility: Any employer, including the self-employed can open 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 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 self-employed retirement plan intended for companies that have no employees or if the only employee is your spouse. These plans are similar to standard 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 additional opportunities may be offset by 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: 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:
- Employee contributions of up to 100% of your earned income from self-employment, up to the annual contribution limit. For 2025, the limits will be $23,500, or $31,000 if you are 50 or older, or $34,750 for individuals aged 60-63 in 2025.
- Contributions as an employer (as an employer) are limited to 25% of your net self-employment income, which is your 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 those aged 50 and older (for 2025), $81,250 if you attain age 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: Defined benefit plans is a retirement option that delivers a pre-established payout to business owners upon retirement. Unlike defined contribution plans mentioned above, investment returns don’t affect the payout, but lets individuals clearly understand the precise amount they'll receive in retirement. This plan is recommended for higher-income entrepreneurs who aim to accumulate a substantial amount for retirement and are prepared to contribute larger deposits. Contributions grow tax-free until withdrawal, and withdrawals incur taxes as income upon retirement.
Eligibility: Entrepreneurs managing a one-person company or employing fewer than five people are eligible to open an individual defined benefit plan, but it's generally recommended for people above age 50 who earn at least $250,000 a year. Typically, good candidates for defined benefit plans include:
- Partners or owners who desire to contribute more than $70,000 (or $77,500 if over age 50)
- Companies already contributing 3-4% but are open to increasing contributions
- Organizations with proven consistent profit patterns
- Partners or owners over age 40 who aim to quickly build retirement savings or accelerate the retirement savings
Contribution Limits: The maximum allowable contribution is calculated by an actuary based on your earnings, age, and retirement objectives. Contribution limits are updated yearly.
The Importance of a Financial Advisor in Corpus Christi, TX for Your Self-Employed Retirement Plan
Working with a financial advisor in Corpus Christi, TX specialized in self-employed retirement plans is an invaluable resource for those working for themselves. They have the expertise to help guide you through the challenges of retirement planning and craft a customized plan that aligns with your goals. A financial advisor in Corpus Christi, TX will evaluate your financial situation, identify your risk preferences, and assist you in choosing wisely about saving and investing for retirement. A key part of what we do for you includes:
- Assist in selecting a plan that suits your unique requirements
- Customize the plan to your specific situation even further
- Create a written plan in accordance with IRS guidelines
- Organize a trust plan to manage your assets
- Ensure you comprehend the plan's terms
- Review and modify your plan to keep it aligned with your goals
- Offer continued financial education and guidance as you continue on the road to retirement
- Maximize what you receive in retirement by making the most of your social security
Self-Employed Retirement Plans in Corpus Christi, TX: Correct Capital's Process
Self-employed individuals in Corpus Christi, TX who don’t have the time or expertise to oversee their self-employed retirement plan themselves can become overwhelmed by their available plans. Through our team at Correct Capital, our Corpus Christi, TX financial advisors handle the bulk of your retirement planning for you, to help make meeting your financial objectives as hassle-free as possible for you. We are here to assist you in setting up your self-employed retirement plan in just four steps:
- Schedule a Call: In just 20 minutes, a member of our advisor team will assess if we're suited to your needs for you and your business. This short conversation allows us to get a sense of your goals with no pressure or extensive time commitment on your part.
- Gather Information: Should we agree to proceed, we'll gather information, including how many employees you have (if any), your present financial standing, and your long-term savings targets. This helps us create a personalized strategy that aligns with your goals.
- Review Your Plan: When we finalize a plan based on the information you provide, we'll schedule a meeting and discuss your plan step by step to make sure it's clear and understand how it best correlates to your needs.
- Implementation and Monitoring: After we agree on your plan, we'll put everything in place so you can start saving. Over the course of our partnership, we'll check in and track your progress to keep it tailored to your evolving circumstances.
Our Corpus Christi, TX financial advisors and retirement plan consultants act as fiduciary advisors, who are obligated to they are legally and ethically bound to do what's in your best interest.
Other financial advisory services we offer in Corpus Christi, TX include:
- Roth Conversion
- Investment Management
- 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 Corpus Christi, TX
You don't see your business as "just a business", and your Corpus Christi, TX financial advisors must deliver more than basic financial recommendations. At Correct Capital, we focus on building a relationship with our clients and their businesses to deliver customized self-employed retirement plans. All our clients in Corpus Christi, TX benefit from our I.O.U. promise: all of the advice you get from us will be independent, objective, and unbiased. To begin on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.
