Self-employed retirement plans Greensboro, NC. The independence of being your own boss in Greensboro, NC is one of the best aspects of having a self-directed career. That said, this freedom sometimes brings with certain challenges, notably in terms of building your retirement fund, 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 understanding their retirement options. In addition to having a financially stable retirement, seeking advice from a financial advisor in Greensboro, NC to create your self-employed retirement plan offers significant tax advantages that help your business to grow and succeed.
Few Greensboro, NC 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 (check out our story here), and Correct Capital are deeply experienced in helping businesses with their retirement planning needs. We understand that your business and retirement aspirations extend well past simple financial figures, and we work tirelessly to offer customized solutions that reflect your objectives. Read on to discover about your self-employed retirement plan options in Greensboro, NC, or call Correct Capital at 877-930-401k or contact us online to talk to a self-employed financial advisor in Greensboro, NC today.
Why Greensboro, NC Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also offer real benefits today. From flexible contributions to substantial tax savings, working with a financial advisor in Greensboro, NC enables you to design your retirement plan to fit your individual circumstances.
Flexibility That Fits Your Income
For those with fluctuating income annually, a plan like a SEP IRA or Solo 401(k) offers the option to tailor how much you save:
- Customizable Contributions: Set aside more during successful years and scale back when income is lower, so your plan fits your financial situation.
- Roth Options: Opting for a Roth Solo 401(k) lets you settle taxes at the time of contribution, enabling you to withdraw your savings tax-free down the road—a smart decision if you expect your tax rate is likely to rise in the future.
Save Money on Taxes
Self-employed retirement plans offer powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a Solo 401(k) lower your taxable income, so you can keep more of your earnings.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, providing your money more time to accumulate.
- State-Specific Incentives: Based on your location, you may be eligible for additional tax breaks as a sole proprietor. These local incentives help make these plans even more valuable.
- Retirement Savings Contributions Credit (Saver’s Credit): Eligible individuals can take advantage of a credit of up to 50% of the first $2,000 they contribute a retirement plan, cutting down 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 determined by your investment strategy:
- Diversified Portfolios: Allocating your investments across varied stocks, bonds, and alternatives is a smart way to reduce risk while helping to grow your nest egg.
- Emergency Back-Up: Pairing your retirement plan with a business emergency fund helps you avoid tapping into your nest egg during challenging periods and incurring penalties.
Plan for the Future of Your Greensboro, NC Business
Retirement planning can assist you think through what’s next with your Greensboro, NC business:
- Selling Your Business: For those considering a sale, retirement accounts like SEP IRAs and Solo 401(k)s remain yours and won’t be included in the sale. These savings offer the reliable income you’ll need in the future. It’s important to note that while selling a business often leads to a capital gain, deposits into these plans are subject to yearly maximums (e.g., up to $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, with catch-up contributions, according to plan rules).
- Minimizing Taxes: Making the most of retirement savings minimizes the taxes you are required to pay when you pass on your business.
- Succession Planning: If you’re passing the business on, your retirement savings offer a stable foundation through the transition. You can also seek advice from a financial advisor with expertise in succession and retirement planning to help with taxes associated with the transaction.
With the best-fit retirement strategy, you can take control of your financial future, cut down your tax obligations, and create a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Greensboro, NC Now?
There’s no denying that time is one of the most important resources for building your retirement fund. Beginning sooner rather than later not only allows you to build a larger nest egg but also lowers the stress 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 may cause a substantial impact on the savings you’ll have when you stop working. The biggest reason is compound interest—the powerful process where your investments generate earnings, and those returns, then, 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. Their shared goal is 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 catch up.
By age 65, with an assumption of 7% annual return:
- Alex puts in $180,000 and accumulates $691,184.39*.
- Taylor invests $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Small, consistent savings contributed over time can lead to substantial growth. Take a look at this scenario showing the impact of compound interest:
- Starting at age 25: By investing $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: Investing the same $200 per month yields only $235,412.97* by age 65—a gap of over $260,000, just from a 10-year delay.
Starting sooner, the lower your annual savings needs each year to achieve your retirement goals.
*These calculations are estimates derived from NerdWallet’s Compound Interest Calculator, based on a 7% annual return. These calculations involved multiplying yearly deposits by the years contributed. The scenarios provided are intended as illustrative examples and do not guarantee future performance. Outcomes may change due to elements like market conditions, fees, and your unique situation. Be sure to speak with a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
As a self-employed person in Greensboro, NC, it might seem easier to focus more on reinvesting in your business instead of saving for retirement. That said, starting a plan now enables you to:
- Benefit from growth that is tax-deferred or penalty-free withdrawals later on.
- Enjoy contribution flexibility that adapt to your cash flow.
- Create a long-term safety measure that offers peace of mind, no matter how your business evolves.
Getting started now, 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 allowing yourself the opportunity to focus on your dreams—both for your future retirement and your Greensboro, NC business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options available for entrepreneurs in Greensboro, NC, each providing its own advantages and considerations. A financial advisor will guide you to evaluate the pros and cons of each plan and choose the one ideal for your circumstances. In most cases, your self-employed retirement plan options in Greensboro, NC consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are long-term savings plans that offer distinct tax benefits. In a traditional IRA, you can usually deduct your contributions from taxable income, and returns grow free of current taxes, but withdrawals in retirement are taxable. In contrast, with Roth IRAs, you contribute using income already taxed, but retirement withdrawals that qualify, including earnings, are exempt from taxes. In both types of accounts, withdrawals are penalty-free as long as you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, traditional and Roth IRAs are accessible for individuals with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 for those aged 50+.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA serves as a retirement savings option that allows self-employed individuals to set aside a portion of their self-employment income. Contributions are strictly employer contributions an employer, so, as a independent business owner, you (the employee) would not be able to contribute more than 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 fixed dollar figure or a percentage of wages to employee accounts. A SEP IRA may be ideal for businesses that experience periods of inconsistent earnings. In contrast to some alternatives, SEP IRAs don’t have costly startup or administrative fees.
SEPs operate like traditional IRAs, where the contributions are tax-deferred and withdrawals are taxed as income.
Eligibility: Employers of any type, including self-employed individuals can establish 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
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 retirement savings plan meant for companies that have no employees or when the sole employee is your spouse. This type of plan operate much like traditional employer-managed 401(k) plans, and let you make contributions as both an employer and an employee with pre-tax money. This provides more savings versus SEPs or IRAs; however, the extra savings options often come with more limited investment options. Using a solo 401(k), you can make either traditional or Roth deferrals, which share the same tax benefits as their IRA contribution counterparts.
Eligibility: This plan is exclusively for business owners and their spouses can set up and contribute to a solo 401(k).
Contribution Limits: For self-employed individuals with a solo 401(k) plan, you are allowed to make two types of contributions:
- Elective deferrals (as an employee) of up to 100% of your self-employed earnings, 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.
- Employer profit-sharing contributions (as an employer) are limited to 25% of your adjusted self-employment income, which is defined as net profit minus half of your self-employment tax and the elective deferrals you made.
Total contributions are capped at $70,000, or $77,500 if you're over age 50 (as of 2025), $81,250 if you attain age 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: Defined benefit plans offers a structured retirement solution that delivers a pre-established payout to business owners upon retirement. In contrast to the plans discussed earlier, investment returns don’t affect the payout, but enables participants to determine the precise amount they'll receive in retirement. This strategy is best suited for wealthier professionals who aim to accumulate a substantial amount for retirement and are prepared to contribute sizeable contributions. Contributions offer tax-deferred growth, and withdrawals are taxed as income in retirement.
Eligibility: Any self-employed individual running an owner-only business or with a small staff of under five can open an individual defined benefit plan, but it's most commonly suggested for those over 50 who generate a minimum of $250,000 yearly. In most cases, good candidates for defined benefit plans tend to be:
- Entrepreneurs 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
- Organizations showing consistent profit patterns
- Partners or owners over age 40 who wish to accelerate savings or increase their retirement contributions rapidly
Contribution Limits: The cap on contributions is calculated by an actuary based on your earnings, age, and retirement objectives. Limits on contributions are updated yearly.
The Importance of a Financial Advisor in Greensboro, NC for Your Self-Employed Retirement Plan
Partnering with an advisor in Greensboro, NC focused on self-employed retirement strategies can be an important asset for those working for themselves. They bring the skills needed to understand the intricacies of saving for retirement and develop a personalized approach that reflects your aspirations. Your advisor in Greensboro, NC will assess where you stand financially, understand your risk tolerance, and help you in making informed decisions about saving and investing for retirement. Included in what we do for you involves:
- Guide you in choosing a plan that suits your unique requirements
- Tailor the plan to fit you personally even further
- Formalize a plan in writing in accordance with IRS guidelines
- Arrange a trust plan for assets
- Ensure you comprehend the plan's terms
- Review and modify your plan as needed
- Offer continued financial education and guidance as you continue on the road to retirement
- Boost your retirement earnings by maximizing your social security benefits
Self-Employed Retirement Plans in Greensboro, NC: Correct Capital's Process
Entrepreneurs in Greensboro, NC who don’t have the time or expertise to handle their own retirement planning independently can become overwhelmed by their available plans. At Correct Capital, our Greensboro, NC financial advisors manage the majority of your retirement strategy for you, working to make meeting your future savings targets as straightforward as possible for you. We are here to assist you in setting up your self-employed retirement plan in four simple steps:
- Schedule a Call: It only takes 20 minutes, a member of our advisor team can help understand if we're a good fit for you and your business. This short conversation allows us to learn about your needs with no obligation or significant effort on your part.
- Gather Information: Should we agree to proceed, we'll request information, including whether you have employees, your current financial situation, and your long-term savings targets. This enables us to craft a custom plan suited specifically for your needs.
- Review Your Plan: When we finalize a plan using the information you provide, we'll meet with you and discuss your plan step by step to help you fully grasp it and explain its fit to your circumstances.
- Implementation and Monitoring: After we agree on your plan, we'll put everything in place so you can start saving. As time goes on, we'll meet with you and track your progress to keep it tailored to your evolving circumstances.
Our Greensboro, NC financial advisors and retirement plan consultants serve as fiduciary advisors, meaning they are legally and ethically bound to prioritize your needs above all else.
Other financial advisory services we offer in Greensboro, NC include:
- 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 Greensboro, NC
To you, your business is more than "just a business", and your Greensboro, NC financial advisors must deliver more than basic financial recommendations. Correct Capital takes pride in, we make it a priority to understand our clients and their businesses to deliver personalized self-employed retirement plans. All our clients in Greensboro, NC benefit from 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.
