Self-employed retirement plans Fort Lauderdale, FL. The independence of running your own company in Fort Lauderdale, FL offers many benefits of having a self-directed career. However, this independence sometimes brings with certain challenges, notably in terms of 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, although many should consider exploring their options. In addition to having a more secure retirement, seeking advice from a financial advisor in Fort Lauderdale, FL to create your self-employed retirement plan offers significant tax advantages that enable both you and your business to thrive.
Few Fort Lauderdale, FL investment consulting and retirement planning firms are as attuned to the requirements of small business owners as well as Correct Capital. Our company’s founder grew up with a father who was a small business owner himself (check out our story here), and we take pride in helping businesses with their retirement planning needs. We recognize that your goals for your business and retirement aren’t limited to just monetary concerns, and we are dedicated to provide personalized solutions that reflect your objectives. Continue exploring to find out about your self-employed retirement plan options in Fort Lauderdale, FL, or give us a call at Correct Capital at 877-930-401k or contact us online to talk to a small business financial advisor in Fort Lauderdale, FL today.
Why Fort Lauderdale, FL Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals are essential for preparing you for the future, they also provide tangible benefits today. From flexible contributions to significant tax savings, working with a financial advisor in Fort Lauderdale, FL helps you create your retirement plan to align with your specific needs.
Flexibility That Fits Your Income
When your earnings vary over time, a plan like a SEP IRA or Solo 401(k) gives you the freedom to adjust how much you save:
- Customizable Contributions: Save extra during profitable years and scale back when your earnings dip, ensuring your plan works with your current income.
- Roth Options: Opting for 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—an advantageous choice 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 Solo 401(k) reduce what you owe in taxes, allowing you to keep more of your earnings.
- Tax-Deferred Growth: You won't pay taxes on investment growth until you withdraw it, providing your money more time to grow.
- State-Specific Incentives: Depending on where you live, you may be eligible for state-specific deductions as a sole proprietor. These state-level incentives help make these plans even more valuable.
- 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 put into a retirement plan, further reducing 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 asset classes like stocks and bonds is a smart way to reduce risk while still growing your retirement fund.
- 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 Fort Lauderdale, FL Business
Preparing for retirement enables you to prepare for what’s next with your Fort Lauderdale, FL business:
- Selling Your Business: If you’re planning to sell, plans like SEP IRAs or Solo 401(k)s remain yours and are not part of the sale. These savings ensure the financial stability you’ll need during retirement. Remember that while selling a business often leads to a capital gain, retirement plan contributions are capped at annual limits (e.g., a maximum of $7,000 for IRAs or up to $70,000 for Solo 401(k)s, factoring in catch-up contributions, based on plan compensation).
- Minimizing Taxes: Strategically planning your contributions helps lower the taxes you might face when you transfer your business.
- Succession Planning: For those winding down or handing over their business, your nest egg ensure a stable foundation during the change. You may also seek advice from a financial advisor with expertise in succession and retirement planning to help with taxes during the sale.
With the proper savings strategy, you gain control over your financial future, lower your tax bill, and build a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Fort Lauderdale, FL Now?
Time is one of the most valuable resources for building your retirement fund. Starting early not only lets you accumulate a larger nest egg but also minimizes the stress of catching up later in life. Here’s why it pays to take action now:
The Cost of Waiting
Delaying your retirement savings may cause a major impact on the total you’ll have when you stop working. The biggest reason is compound interest—the powerful process where your investments generate earnings, and those returns, subsequently, accumulate 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. Both of them want to save $500,000 for retirement by age 65:
- Alex starts saving $5,000 annually at age 30.
- Taylor postpones starting contributions to age 40 but contributes $7,500 annually to catch up.
By age 65, using a projected 7% annual return:
- Alex contributes $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
Regular, modest investments invested steadily can lead to impressive growth. Take a look at this scenario showing the impact of consistent growth:
- Starting at age 25: Putting aside $200 per month in a retirement plan with an average annual return of 7%, you’ll grow to approximately $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 shortfall of over $260,000, all because of a 10-year delay.
Starting sooner, the less effort required each year to reach your retirement goals.
*These calculations represent estimates derived from 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 intended as illustrative examples and are not a promise of future results. Actual results may vary due to variables including market conditions, fees, and personal factors. We recommend consulting a financial advisor for custom recommendations.
Take Control of Your Financial Future
If you’re self-employed in Fort Lauderdale, FL, it can be tempting to focus more on reinvesting in your business over saving for retirement. However, beginning a plan now allows you to:
- Take advantage of growth that is tax-deferred or tax-free withdrawals down the road.
- Take advantage of flexible contributions that adapt to your cash flow.
- Build a long-term safety measure that ensures stability, no matter how your business develops.
Starting early, the less you’ll need to worry about playing catch-up later in life. Saving for retirement now means managing your financial future and allowing yourself the opportunity to focus on your objectives—both for your future retirement and your Fort Lauderdale, FL business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options available for entrepreneurs in Fort Lauderdale, FL, each offering its own advantages and considerations. A financial advisor is available to help you evaluate the advantages and disadvantages of each choice and choose the one most suitable for your circumstances. In most cases, your self-employed retirement plan options in Fort Lauderdale, FL consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are financial tools for retirement that offer specific tax advantages. In a traditional IRA, contributions are typically tax-deductible, and earnings grow without immediate taxation, but withdrawals in retirement are taxable. In contrast, Roth IRA contributions from post-tax earnings, but eligible distributions during retirement, including earnings, are exempt from taxes. In both types of accounts, withdrawals don’t incur penalties as long as you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, IRAs, including traditional and Roth options are open to those with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are capped at $7,000, or $8,000 if you qualify for catch-up contributions.
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 must come from an employer, so, as a sole proprietor, you (the employee) cannot make additional contributions more than the 25% you (the employer) already contributed. 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 set monetary value or a percentage of wages to employee accounts. SEP IRAs may be ideal for companies with fluctuating revenue streams. Unlike other plans, SEP IRAs are free of expensive setup or ongoing fees.
SEPs operate like standard IRAs, where the contributions are tax-deferred and withdrawals are taxed as income.
Eligibility: Both employers and 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 allowable contribution 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 savings option for the self-employed meant for companies that have no employees or if the only employee is your spouse. These plans function similarly to standard 401(k) plans, and let you make contributions as both an employee or an employer with pre-tax money. This offers more savings compared to SEPs or IRAs; however, the additional opportunities can be balanced by more limited investment options. In a solo 401(k) plan, you can make either traditional or Roth deferrals, which share 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:
- Deferrals as an employee of up to 100% of your self-employment income, capped at the annual contribution limit. In 2025, those limits are $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) must not surpass 25% of your adjusted self-employment income, which is defined as net profit minus half of your self-employment tax and the employee contributions you made.
Your combined contributions must not surpass $70,000, or $77,500 for individuals aged 50+ (as of 2025), $81,250 for individuals turning 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: Defined benefit plans represents a type of retirement plan that guarantees a fixed, predetermined benefit to business owners upon retirement. Unlike defined contribution plans mentioned above, investment returns don’t affect the payout, but enables participants to determine the precise amount they'll have in retirement. This option is ideal for high-earning self-employed individuals who are focused on saving a significant sum for retirement and are prepared to contribute sizeable contributions. Contributions are tax deferred, and withdrawals are taxed as income in retirement.
Eligibility: Any self-employed individual managing a one-person company or with a small staff of under five are eligible to open an individual defined benefit plan, but it's most commonly suggested for people above age 50 who make $250,000 or more annually. In most cases, good candidates for defined benefit plans are:
- Entrepreneurs who want to invest more than $70,000 (or $77,500 if over age 50)
- Organizations that already put in 3-4% but are open to increasing contributions
- Businesses showing consistent profit patterns
- Partners or owners over age 40 who aim to quickly build retirement savings or increase their retirement contributions rapidly
Contribution Limits: The cap on contributions requires calculation from an actuary determined by your earnings, age, and retirement objectives. Allowable contributions change annually.
The Importance of a Financial Advisor in Fort Lauderdale, FL for Your Self-Employed Retirement Plan
Partnering with an advisor in Fort Lauderdale, FL focused on self-employed retirement strategies is an essential partner for entrepreneurs. They have the expertise to help understand the intricacies of saving for retirement and develop a personalized approach that reflects your aspirations. An expert in your area will assess where you stand financially, understand your risk tolerance, and guide you in making informed decisions about saving and investing for retirement. A key part of what we do for you involves:
- Assist in selecting a plan that aligns with your objectives and circumstances
- Customize the plan to your needs even further
- Adopt a written plan as required by IRS rules
- Arrange a trust plan for assets
- Ensure you comprehend the plan's terms
- Review and modify your plan when necessary
- Deliver continuous support and financial insights to help you navigate your retirement journey
- Boost your retirement earnings by making the most of your social security
Self-Employed Retirement Plans in Fort Lauderdale, FL: Correct Capital's Process
Self-employed individuals in Fort Lauderdale, FL who lack the time, interest, or knowledge to handle their own retirement planning on their own may end up overwhelmed as they look at their choices. Through our team at Correct Capital, our Fort Lauderdale, FL financial advisors manage the bulk of your retirement planning for you, to help make meeting your retirement goals as hassle-free as possible for you. We will guide you in creating your self-employed retirement plan in four simple steps:
- 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 brief introduction helps us learn about your needs with zero commitment or significant effort on your part.
- Gather Information: If we both decide to move forward, we'll ask for information, including how many employees you have (if any), your existing financial picture, and your retirement goals. This allows us to put together a custom plan suited specifically for your needs.
- Review Your Plan: Once we've developed a plan from the information you provide, we'll schedule a meeting and discuss your plan in detail to make sure it's clear and explain its fit to your circumstances.
- Implementation and Monitoring: After we agree on your plan, we'll set everything up so you can start saving. Over the course of our partnership, we'll check in and monitor your plan to keep it tailored to your evolving circumstances.
Our Fort Lauderdale, FL financial advisors and retirement plan consultants are 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:
- 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 Fort Lauderdale, FL
Your business isn't "just a business" to you, and your Fort Lauderdale, FL financial advisors must deliver more than basic financial recommendations. With Correct Capital, we focus on building a relationship with our clients and their businesses to create tailored self-employed retirement plans. To every client in Fort Lauderdale, FL, we provide our I.O.U. promise: all guidance we provide will be independent, objective, and unbiased. To begin on your self-employment retirement plan, contact Correct Capital now at 877-930-401k or contact us online.
