Self-employed retirement plans Fort Lauderdale, FL. The flexibility of being your own boss in Fort Lauderdale, FL is one of the greatest advantages of being self-employed. Even so, this freedom can come with a lack of security, particularly when it comes to planning for retirement, because you don't have the option of a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, but many should consider looking into other possibilities. In addition to having a financially stable retirement, seeking advice from a financial advisor in Fort Lauderdale, FL to establish your self-employed retirement plan offers significant tax advantages that help both you and your business to thrive.
Few Fort Lauderdale, FL financial advisory and retirement planning firms are as attuned to the requirements of small business owners better than Correct Capital. Our founder's father was a small business owner himself (read more of our story here), and our firm take pride in assisting business owners in their retirement planning needs. We understand that your business and retirement aspirations go far beyond basic numbers, and we work tirelessly to create personalized solutions to meet your unique goals. Read on to discover about your self-employed retirement plan options in Fort Lauderdale, FL, or reach out to Correct Capital at 877-930-401k or contact us online to talk to a entrepreneurial financial advisor in Fort Lauderdale, FL today.
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Why Fort Lauderdale, FL Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals not only prepare you for the future, they also offer immediate benefits today. Offering flexibility in contributions to significant tax savings, consulting a financial advisor in Fort Lauderdale, FL helps you create your retirement plan to fit your specific needs.
Flexibility That Fits Your Income
For those with fluctuating income annually, a plan like a SEP IRA or Solo 401(k) provides the option to adjust how much you save:
- Customizable Contributions: Contribute more during high-income years and reduce savings when your earnings dip, so your plan fits your cash flow.
- Roth Options: Opting for a Roth Solo 401(k) lets you handle taxes upfront, allowing you to withdraw tax-free later—a smart decision if you believe your tax rate will increase in the future.
Save Money on Taxes
Plans designed for the self-employed offer powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA lower your taxable income, so you can keep more of your income.
- Tax-Deferred Growth: You won't pay taxes on investment growth until you withdraw it, giving your money more time to grow.
- State-Specific Incentives: Depending on where you live, you might access additional tax breaks as a business owner. These state-level incentives can make these plans even more advantageous.
- Retirement Savings Contributions Credit (Saver’s Credit): Those who meet the requirements can take advantage of a credit of up to 50% of the first $2,000 contributed a retirement plan, cutting down your tax bill even more.
Protect Your Savings With Smart Investments
Creating a stable future goes beyond just 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 reduce risk while still growing your savings.
- Emergency Back-Up: Combining your retirement strategy and a business emergency fund helps you avoid dipping into savings during challenging periods and facing tax penalties.
Plan for the Future of Your Fort Lauderdale, FL Business
Retirement planning can assist you plan ahead for what’s next with your Fort Lauderdale, FL business:
- Selling Your Business: When selling your business, retirement accounts like SEP IRAs and Solo 401(k)s remain your personal assets and don’t transfer with the business. These plans ensure the steady income you’ll need later on. Remember that while the sale of a business usually creates a capital gain, contributions to retirement accounts are subject to yearly maximums (e.g., as much as $7,000 for IRAs or up to $70,000 for Solo 401(k)s, including catch-up contributions, depending on plan details).
- Minimizing Taxes: Using retirement contributions wisely helps lower the taxes you’ll owe when you transfer your business.
- Succession Planning: For those winding down or handing over their business, your retirement accounts ensure financial security as you make this shift. You may also seek advice from a financial advisor who specializes in succession planning and retirement accounts to help with taxes associated with the transaction.
With the proper savings strategy, you manage your financial future, reduce your tax burden, and create a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Fort Lauderdale, FL Now?
There’s no denying that time is one of the most crucial resources for building your retirement fund. Getting a head start not only lets you accumulate a more substantial retirement fund but also lowers the pressure of saving aggressively in the future. This is why it pays to take action now:
The Cost of Waiting
Delaying your retirement savings may cause a significant impact on the savings you’ll have when you reach retirement age. The main reason is compound interest—the financial principle where your investments grow, and those returns, then, earn even more returns. The more time your money has to grow, the more significant the impact of this growth.
Example: Alex and Taylor are both self-employed individuals. 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 bridge the gap.
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 only ends up with $474,367.78*.
How Early Contributions Grow
Even modest contributions invested steadily can lead to substantial growth. Here’s a simple scenario showing the power of compound interest:
- Starting at age 25: Putting aside $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: Contributing the same $200 per month would result in only $235,412.97* by age 65—a gap of over $260,000, just from a 10-year delay.
Saving early, the less you need to save each year to meet your retirement goals.
*The figures provided in this example 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. These examples are for illustrative purposes only and are not a promise of future results. Your individual results may differ depending 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
For self-employed individuals in Fort Lauderdale, FL, it is often the case that you put more emphasis on reinvesting in your business rather than saving for retirement. However, initiating a plan now enables you to:
- Leverage tax-free future growth or tax-free withdrawals in the future.
- Take advantage of adjustable savings that adapt to your earnings.
- Build a long-term safety measure that ensures stability, no matter how your business changes.
Getting started now, the less you’ll be required to worry about making up for lost time later in life. Building your retirement savings today means managing your financial future and giving yourself the ability to focus on your objectives—both for your future retirement and your Fort Lauderdale, FL business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options available for self-employed individuals in Fort Lauderdale, FL, each providing its own advantages and considerations. A financial advisor will guide you to evaluate the benefits and drawbacks of each plan and choose the one ideal for your unique situation. In most cases, your self-employed retirement plan options in Fort Lauderdale, FL consist of:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent long-term savings plans that include key tax perks. In a standard IRA, the money you contribute is often tax-deductible, and investment earnings grow tax-deferred, but money taken out during retirement are subject to income tax. In contrast, Roth IRAs require contributions using income already taxed, but eligible distributions during retirement, including earnings, are exempt from taxes. In both accounts, withdrawals come without penalties provided you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, IRAs, including traditional and Roth options are available to anyone with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs remain $7,000, or $8,000 for those aged 50+.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA is a retirement plan that permits those who are self-employed to contribute a percentage of their net earnings. Contributions can only be made by an employer, so, as a self-employed individual, you (the employee) are limited to contributions from the employer role more than 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. It's your choice whether to contribute a fixed dollar figure or a percentage of wages to employee accounts. SEP IRAs works well for businesses that experience periods of inconsistent earnings. Compared to other retirement options, SEP IRAs are free of costly startup or administrative fees.
SEPs function like traditional IRAs, where the contributions are tax-deferred 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
As a self-employed person, the contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: A Solo 401(k) plan, also called an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan intended for businesses without employees or if the only employee is your spouse. This type of plan function similarly to employer-sponsored 401(k) plans, and allow you to contribute 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. Using a solo 401(k), 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 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:
- Deferrals as an employee of up to 100% of your self-employed earnings, up to the annual contribution limit. In 2025, those limits are $23,500, or $31,000 for those aged 50 and above, or $34,750 for those who turn 60-63 in 2025.
- Profit-sharing contributions (as an employer) cannot exceed 25% of your net earnings from self-employment, 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: Defined benefit plans offers a structured retirement solution that delivers a set amount to business owners upon retirement. As opposed to defined contribution plans, this plan is not influenced by market performance, but lets individuals clearly understand the precise amount they'll have in retirement. This option is recommended for higher-income self-employed individuals who want to save a significant sum for retirement and can commit to making sizeable contributions. Contributions are tax deferred, and withdrawals incur taxes as income during retirement.
Eligibility: Self-employed professionals operating a solo business or employing fewer than five people are eligible to open an individual defined benefit plan, but it's most commonly recommended for individuals aged 50+ who generate a minimum of $250,000 yearly. In most cases, good candidates for defined benefit plans include:
- Partners or owners who want to invest more than $70,000 (or $77,500 for those aged 50+)
- Businesses currently investing 3-4% but are open to increasing contributions
- Organizations showing consistent profit patterns
- Partners or owners over age 40 who wish to accelerate savings or boost savings within a short timeframe
Contribution Limits: The cap on contributions requires calculation from an actuary based on your earnings, age, and retirement objectives. Allowable contributions are updated yearly.
The Importance of a Financial Advisor in Fort Lauderdale, FL for Your Self-Employed Retirement Plan
Partnering with an advisor in Fort Lauderdale, FL specialized in self-employed retirement plans is an important asset for those working for themselves. They offer the knowledge to assist guide you through the challenges of retirement planning and develop a customized plan that aligns with your goals. Your advisor in Fort Lauderdale, FL will evaluate your financial situation, determine how much risk you’re comfortable with, and assist you in making informed decisions about saving and investing for retirement. Part of what we do for you features:
- Assist in selecting a plan that aligns with your objectives and circumstances
- Tailor the plan to your specific situation even further
- Create a written plan as required by IRS rules
- Set up an asset trust plan
- Make sure you understand the plan's terms
- Track and fine-tune your plan when necessary
- Provide ongoing education and advice to help you navigate your retirement journey
- Increase your retirement income by optimizing your social security benefits
Self-Employed Retirement Plans in Fort Lauderdale, FL: Correct Capital's Process
Entrepreneurs in Fort Lauderdale, FL who lack the time, interest, or knowledge to oversee their retirement savings strategy independently often feel overwhelmed when faced with their available plans. At Correct Capital, our Fort Lauderdale, FL financial advisors manage the majority of your retirement planning for you, working to make meeting your future savings targets as easy 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: 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 brief introduction helps us understand what you're looking for with no pressure or significant effort on your part.
- Gather Information: Should we agree to proceed, we'll ask for information, including your employee count, your present financial standing, and your future objectives. This allows us to put together a custom plan suited specifically for your needs.
- Review Your Plan: When we finalize a plan from the information you provide, we'll schedule a meeting and go over your plan thoroughly to make sure it's clear and explain its fit to your circumstances.
- Implementation and Monitoring: When we finalize on your plan, we'll put everything in place so you can start saving. Throughout our relationship, we'll have regular meetings and review your strategy to ensure it stays suited to your needs.
Our Fort Lauderdale, FL financial advisors and retirement plan consultants serve as fiduciary advisors, meaning they are committed by law and ethics to act in your best interest.
Other financial advisory services we offer in Fort Lauderdale, FL 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 Fort Lauderdale, FL
Your business isn't "just a business" to you, and your Fort Lauderdale, FL financial advisors need to offer more than basic financial recommendations. With Correct Capital, we make it a priority to understand our clients and their businesses to provide customized self-employed retirement plans. All our clients in Fort Lauderdale, FL 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, contact Correct Capital now at 877-930-401k or contact us online.
