Self-employed retirement plans Fort Worth, TX. The independence of being your own boss in Fort Worth, TX offers many benefits of being self-employed. However, this independence can come with potential drawbacks, particularly in terms of retirement savings, because you don't have the option of a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, yet countless would be better off looking into other possibilities. In addition to enjoying a financially stable retirement, partnering with a financial advisor in Fort Worth, TX to establish your self-employed retirement plan offers significant tax advantages that help both you and your business to thrive.
Few Fort Worth, TX financial advisory and retirement planning firms are as attuned to the requirements of small business owners better than Correct Capital. The father of our founder was a small business owner himself (check out our story here), and our firm have a rich history of assisting business owners in their retirement planning needs. We recognize that your goals for your business and retirement go far beyond basic numbers, and we strive to offer personalized solutions aligned with your vision. Continue exploring to find out about your self-employed retirement plan options in Fort Worth, TX, or reach out to Correct Capital at 877-930-401k or contact us online to consult with a small business financial advisor in Fort Worth, TX today.
Why Fort Worth, 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. From flexible contributions to considerable tax savings, consulting a financial advisor in Fort Worth, TX enables you to customize your retirement plan to fit your individual circumstances.
Flexibility That Fits Your Income
For those with fluctuating income from year to year, a plan like a SEP IRA or Solo 401(k) provides the freedom to modify how much you save:
- Customizable Contributions: Contribute more during high-income years and cut back 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, allowing you to withdraw your savings tax-free down the road—an advantageous choice if you anticipate your tax rate will increase in the future.
Save Money on Taxes
Self-employed retirement plans deliver valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA shrink your tax liability, helping you keep more of your earnings.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to compound.
- State-Specific Incentives: In some states, you may be eligible for additional tax breaks as a sole proprietor. These regional incentives help make these plans even more advantageous.
- Retirement Savings Contributions Credit (Saver’s Credit): Eligible individuals 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
Planning for a safe retirement requires more than how much you save—it’s also about how you invest:
- Diversified Portfolios: Distributing your investments across different stocks, bonds, and other assets serves to reduce risk while still growing your nest egg.
- Emergency Back-Up: Combining your retirement strategy and a financial buffer for your business helps you avoid tapping into your nest egg during challenging periods and facing tax penalties.
Plan for the Future of Your Fort Worth, TX Business
A thoughtful retirement strategy can assist you plan ahead for what’s next with your Fort Worth, TX business:
- Selling Your Business: For those considering a sale, plans like SEP IRAs or Solo 401(k)s remain yours and won’t be included in the sale. These accounts offer the steady income you’ll need in the future. Remember that while selling a business often leads to a capital gain, deposits into these plans are capped at annual limits (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 are required to pay when you pass on your business.
- Succession Planning: Whether you’re transferring ownership, your retirement savings offer the funds you need during the change. You may also partner with a financial advisor experienced in both succession and retirement strategies to reduce taxes during the sale.
With the right retirement plan, you gain control over your financial future, reduce your tax burden, and establish a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Fort Worth, TX Now?
There’s no denying that time is one of the most crucial resources in retirement planning. Getting a head start not only lets you accumulate a bigger financial cushion but also reduces the pressure of saving aggressively in the future. This is why it makes sense to begin today:
The Cost of Waiting
Waiting to start your retirement fund can have a substantial impact on the amount you’ll have when you stop working. The biggest reason is compound interest—the powerful process where your investments earn returns, and those returns, subsequently, generate even more returns. The greater time span your money has to grow, the larger the impact of this growth.
Example: Taylor and Alex are both self-employed professionals. Both of them want to save $500,000 for retirement by age 65:
- Alex begins contributing $5,000 annually at age 30.
- Taylor delays savings until age 40 but puts away $7,500 annually to make up for lost time.
By age 65, assuming 7% annual return:
- Alex puts in $180,000 and achieves a total of $691,184.39*.
- Taylor invests $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Small, consistent savings contributed over time may result in significant growth. Consider this example showing the effect of consistent growth:
- Starting at age 25: If you invest $200 per month in a retirement plan with an projected return of 7%, you’ll grow to approximately $497,303.29* by age 65.
- Starting at age 35: Saving the same $200 per month yields only $235,412.97* by age 65—a shortfall of over $260,000, simply due to a 10-year delay.
Starting sooner, 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. These calculations involved multiplying yearly deposits by the years contributed. These examples are for illustrative purposes only and are not a promise of future results. Outcomes may change depending on variables including market conditions, fees, and individual circumstances. We recommend consulting a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
If you’re self-employed in Fort Worth, TX, it might seem easier to focus more on reinvesting in your business rather than saving for retirement. Even so, initiating a plan now allows you to:
- Leverage growth that is tax-deferred or tax-free withdrawals later on.
- Benefit from flexible contributions that align with your earnings.
- Create a long-term safety measure that offers peace of mind, no matter how your business evolves.
The sooner you start, the less you’ll have to worry about catching up later in life. Saving for retirement now means gaining control over your financial future and allowing yourself the ability to turn your attention to your dreams—both for your retirement years and your Fort Worth, TX business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options open for those working for themselves in Fort Worth, TX, each providing its own pros and cons. A financial advisor will guide you to evaluate the advantages and disadvantages of each plan and choose the one ideal for your needs. In most cases, your self-employed retirement plan options in Fort Worth, TX consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are long-term savings plans that include key tax perks. In a traditional IRA, contributions are typically tax-deductible, and investment earnings grow tax-deferred, but money taken out during retirement are taxed as income. In contrast, Roth IRAs require contributions using income already taxed, but eligible distributions during retirement, including earnings, are exempt from taxes. In both types of accounts, withdrawals don’t incur penalties provided you are at least 59½.
Eligibility: While many retirement plans, such as 401(k)s, are tied to employment, traditional and Roth IRAs are accessible for individuals with taxable earnings.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 if you qualify for catch-up contributions.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA serves as a retirement savings option that permits entrepreneurs to contribute a percentage of their net earnings. Contributions are strictly employer contributions an employer, so, as a sole proprietor, you (the employee) cannot make additional contributions above the 25% you (the employer) have designated. 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 set monetary value 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. Unlike other plans, SEP IRAs don’t have expensive setup or ongoing fees.
SEPs operate like traditional IRAs, where contributions are made with pre-tax money and money withdrawn is subject to income tax.
Eligibility: Any employer, including the self-employed can establish a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA must not exceed:
- 25% of compensation, or
- $70,000 for 2025
If you’re self-employed, the allowable contribution 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 savings option for the self-employed meant for businesses with no employees or when the sole employee is your spouse. These plans operate much like traditional employer-managed 401(k) plans, and let you make contributions as both the employer and the employee with pre-tax money. This provides more savings versus SEPs or IRAs; however, the additional opportunities often come with more restricted investment choices. 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: Only business owners and their spouses are eligible to open and contribute to a solo 401(k).
Contribution Limits: If you are self-employed with a solo 401(k) plan, you can make two types of contributions:
- Employee contributions of up to 100% of your earned income from self-employment, 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 those who turn 60-63 in 2025.
- Contributions as an employer (as an employer) cannot exceed 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 those aged 50 and older (for 2025), $81,250 if you attain age 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan is a retirement option that provides a fixed, predetermined benefit to self-employed individuals upon retirement. In contrast to the plans discussed earlier, investment returns don’t affect the payout, but enables participants to determine exactly how much they'll have in retirement. This plan is recommended for higher-income professionals who want to save a large amount for retirement and are prepared to contribute sizeable contributions. Contributions grow tax-free until withdrawal, and withdrawals are taxed as income in retirement.
Eligibility: Any self-employed individual operating a solo business or with less than five employees can open an individual defined benefit plan, but it's generally suggested for individuals aged 50+ who generate a minimum of $250,000 yearly. Generally, good candidates for defined benefit plans are:
- Business owners or partners who want to invest more than $70,000 (or $77,500 for individuals 50 and older)
- Businesses currently investing 3-4% but are open to increasing contributions
- Companies showing consistent profit patterns
- Partners or owners over age 40 who wish to accelerate savings or increase their retirement contributions rapidly
Contribution Limits: The maximum allowable contribution is calculated by an actuary based on your financial situation, age, and savings targets. Contribution limits are adjusted each year.
The Importance of a Financial Advisor in Fort Worth, TX for Your Self-Employed Retirement Plan
A financial advisor in Fort Worth, TX focused on self-employed retirement strategies is an essential partner for self-employed individuals. They have the expertise to help navigate the complexities of retirement planning and design a customized plan that aligns with your goals. A financial advisor in Fort Worth, TX will assess where you stand financially, understand your risk tolerance, and assist you in choosing wisely about saving and investing for retirement. Included in what we do for you includes:
- Help you choose a plan that best fits your needs and goals
- Tailor the plan to your specific situation even further
- Create a written plan in accordance with IRS guidelines
- Arrange a trust plan for assets
- Make sure you understand the plan's terms
- Review and modify your plan as needed
- Offer continued financial education and guidance throughout your retirement planning process
- Increase your retirement income by making the most of your social security
Self-Employed Retirement Plans in Fort Worth, TX: Correct Capital's Process
Fort Worth, TX business owners who lack the time, interest, or knowledge to manage their retirement savings strategy themselves often feel overwhelmed by their available plans. At Correct Capital, our Fort Worth, TX financial advisors handle the lion's share of your retirement strategy for you, working to make meeting your future savings targets as straightforward as possible for you. We will guide you in creating your self-employed retirement plan in just four steps:
- Schedule a Call: It only takes 20 minutes, a member of our advisor team can determine if we're suited to your needs for you and your business. This short conversation lets us understand what you're looking for with zero commitment or extensive time commitment on your part.
- Gather Information: Should we agree to proceed, we'll gather information, including your employee count, your current financial situation, and your retirement goals. 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 meet with you and review your plan thoroughly to help you fully grasp it and understand how it best correlates to your needs.
- Implementation and Monitoring: After we agree on your plan, we'll set everything up so you can start saving. As time goes on, we'll meet with you and review your strategy to make sure it remains aligned with your goals.
Our Fort Worth, TX financial advisors and retirement plan consultants are fiduciary advisors, who are obligated to they are required by law and ethical standards to prioritize your needs above all else.
Other financial advisory services we offer in Fort Worth, TX 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 Worth, TX
To you, your business is more than "just a business", and your Fort Worth, TX financial advisors need to offer more than basic financial recommendations. At Correct Capital, we make it a priority to understand our clients and their businesses to deliver customized self-employed retirement plans. To every client in Fort Worth, TX, we provide our I.O.U. promise: all guidance we provide 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.
