Self-employed retirement plans Henderson, NV. The freedom of owning your own business in Henderson, NV is one of the best aspects of having a self-directed career. However, this independence can come with certain challenges, notably regarding building your retirement fund, as you don't have access to a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, but many should consider exploring their options. In addition to achieving a more comfortable retirement, working with a financial advisor in Henderson, NV to establish your self-employed retirement plan offers significant tax advantages that help both you and your business to thrive.
Few Henderson, NV wealth management and retirement planning firms truly grasp the challenges faced by small business owners as well as Correct Capital. Our founder's father was a small business owner himself (learn more about our story here), and our firm have a rich history of supporting entrepreneurs with their retirement planning needs. We understand that your professional and personal aspirations extend well past basic numbers, and we are dedicated to offer customized solutions to meet your unique goals. Keep reading to learn more about your self-employed retirement plan options in Henderson, NV, or call Correct Capital at 877-930-401k or contact us online to speak with a entrepreneurial financial advisor in Henderson, NV today.
Why Henderson, NV Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also offer immediate benefits today. With customizable contribution options to significant tax savings, working with a financial advisor in Henderson, NV enables you to create your retirement plan to fit your individual circumstances.
Flexibility That Fits Your Income
When your earnings vary from year to year, a plan like a SEP IRA or Solo 401(k) provides the flexibility to adjust how much you save:
- Customizable Contributions: Contribute more during successful years and reduce savings when your earnings dip, ensuring your plan works with your cash flow.
- Roth Options: Opting for a Roth Solo 401(k) lets you settle taxes at the time of contribution, allowing you to withdraw your savings tax-free down the road—a wise move if you expect your tax rate to be higher in the future.
Save Money on Taxes
Self-employed retirement plans deliver valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA shrink your tax liability, so you can keep more of your hard-earned money.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, giving your money more time to grow.
- State-Specific Incentives: Depending on where you live, you might access additional credits as a self-employed individual. These regional incentives help make these plans even more valuable.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can take advantage of a credit of up to 50% of the first $2,000 they contribute a retirement plan, further reducing 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 minimize exposure to risk while continuing to build your nest egg.
- Emergency Back-Up: Supplementing your retirement savings with a business emergency fund ensures you don’t using your retirement funds during tough times and risking extra costs.
Plan for the Future of Your Henderson, NV Business
A thoughtful retirement strategy enables you to prepare for what’s next with your Henderson, NV business:
- Selling Your Business: If you’re planning to sell, plans like SEP IRAs or Solo 401(k)s remain yours and won’t be included in the sale. These plans offer the steady income you’ll need during retirement. Remember that while the sale of a business usually creates a capital gain, deposits into these plans are subject to yearly maximums (e.g., a maximum of $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, with catch-up contributions, depending on plan details).
- Minimizing Taxes: Using retirement contributions wisely helps lower the taxes you might face when you sell your business.
- Succession Planning: For those winding down or handing over their business, your nest egg provide financial security during the change. You might want to work with a financial advisor with expertise in succession and retirement planning to minimize tax burdens on the sale.
With the right retirement plan, you manage your financial future, cut down your tax obligations, and build a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Henderson, NV Now?
Time remains one of the most valuable resources in retirement planning. Starting early not only lets you accumulate a larger nest egg but also reduces the stress of playing catch-up as you get older. The following are reasons why it is beneficial to start now:
The Cost of Waiting
Delaying your retirement savings could lead to a major impact on the savings you’ll have when you retire. The main reason is compound interest—the concept where your investments generate earnings, and those returns, subsequently, generate even more returns. The greater time span your money has to grow, the more significant the effect of compounding.
Example: Taylor and Alex are both entrepreneurs. Their shared goal is to save $500,000 for retirement by age 65:
- Alex starts saving $5,000 annually at age 30.
- Taylor delays savings until age 40 but contributes $7,500 annually to catch up.
By age 65, assuming 7% annual return:
- Alex invests $180,000 and achieves a total of $691,184.39*.
- Taylor puts in $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Small, consistent savings made consistently can lead to impressive growth. Here’s a simple scenario showing the effect of compound interest:
- Starting at age 25: If you invest $200 per month in a retirement plan with an projected return of 7%, you’ll accumulate $497,303.29* by age 65.
- Starting at age 35: Saving the same $200 per month would result in only $235,412.97* by age 65—a shortfall of over $260,000, all because of a 10-year delay.
Starting sooner, the lower your annual savings needs each year to reach your retirement goals.
*These calculations represent estimates derived from NerdWallet’s Compound Interest Calculator, assuming a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. The scenarios provided are for illustrative purposes only and do not guarantee future performance. Outcomes may change based on elements like market conditions, fees, and individual circumstances. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
If you’re self-employed in Henderson, NV, it can be tempting to put more emphasis on reinvesting in your business instead of saving for retirement. That said, beginning a plan now gives you the chance to:
- Take advantage of growth that is tax-deferred or tax-free withdrawals down the road.
- Take advantage of adjustable savings that adapt to your income.
- Establish a financial cushion that ensures stability, no matter how your business develops.
Getting started now, the less you’ll be required to worry about playing catch-up later in life. Saving for retirement now means managing your financial future and giving yourself the ability to focus on your objectives—both for your retirement years and your Henderson, NV business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options open for entrepreneurs in Henderson, NV, each offering its own benefits and trade-offs. A financial advisor is available to help you evaluate the pros and cons of each plan and choose the one best suited for your circumstances. In most cases, your self-employed retirement plan options in Henderson, NV are:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are retirement savings vehicles that provide key tax perks. In a standard IRA, contributions are typically tax-deductible, and returns grow free of current taxes, but withdrawals in retirement are subject to income tax. In contrast, with Roth IRAs, you contribute from post-tax earnings, but eligible distributions during retirement, including earnings, are exempt from taxes. In both accounts, withdrawals are penalty-free as long as you are at least 59½.
Eligibility: Unlike plans linked to your job, both traditional and Roth IRAs are accessible for individuals with an earned 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 enables entrepreneurs to contribute a percentage of their net earnings. Contributions can only be made by an employer, so, as a independent business owner, you (the employee) would not be able to contribute 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 flat-dollar amount or a percentage of wages to employee accounts. SEP IRAs may be ideal for businesses that experience cycles of high revenue and low revenue. Compared to other retirement options, SEP IRAs don’t have costly startup or administrative fees.
SEPs operate like traditional IRAs, where contributions are made with pre-tax money and money withdrawn is subject to income tax.
Eligibility: Employers of any type, including self-employed individuals can set up 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 amount eligible to be contributed is based on a special calculation.
Solo 401(k)
Plan Overview: The Solo 401(k), commonly known 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 function similarly to traditional employer-managed 401(k) plans, and enable contributions as both an employer and an employee with pre-tax money. This offers more savings versus SEPs or IRAs; however, the extra savings options can be balanced by more constrained investment avenues. Using a solo 401(k), you can make either traditional or Roth deferrals, which offer the same tax benefits as their IRA contribution counterparts.
Eligibility: Only 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 can 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 individuals aged 60-63 in 2025.
- Employer profit-sharing contributions (as an employer) are limited to 25% of your net earnings from self-employment, which is your net profit minus half of your self-employment tax and the employee contributions you made.
Total contributions are capped at $70,000, or $77,500 for individuals aged 50+ (for 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan offers a structured retirement solution that guarantees a pre-established payout to self-employed individuals upon retirement. Unlike defined contribution plans mentioned above, investment returns don’t affect the payout, but enables participants to determine exactly how much they'll get in retirement. This plan is best suited for higher-income self-employed individuals who aim to accumulate a large amount for retirement and are prepared to contribute sizeable contributions. Contributions are tax deferred, and withdrawals are taxable as income in retirement.
Eligibility: Any self-employed individual managing a one-person company or employing fewer than five people can open an individual defined benefit plan, but it's most commonly advised for those over 50 who earn at least $250,000 a year. Generally, good candidates for defined benefit plans are:
- Partners or owners who want to invest more than $70,000 (or $77,500 for those aged 50+)
- Businesses currently investing 3-4% with plans to contribute more
- Businesses that have demonstrated consistent profit patterns
- Entrepreneurs over age 40 who aim to quickly build retirement savings or accelerate the retirement savings
Contribution Limits: The cap on contributions requires calculation from an actuary determined by your financial situation, age, and savings targets. Limits on contributions are adjusted each year.
The Importance of a Financial Advisor in Henderson, NV for Your Self-Employed Retirement Plan
Partnering with an advisor in Henderson, NV specialized in self-employed retirement plans is an important asset for self-employed individuals. They have the expertise to help understand the intricacies of saving for retirement and develop a customized plan that aligns with your goals. A financial advisor in Henderson, NV will evaluate your financial situation, identify your risk preferences, and guide you in selecting the best options about saving and investing for retirement. Included in what we do for you features:
- Assist in selecting a plan that aligns with your objectives and circumstances
- Customize the plan to your needs even further
- Adopt a written plan in accordance with IRS guidelines
- Organize a trust plan to manage your assets
- Help you understand the plan's terms
- Review and modify your plan as needed
- Provide ongoing education and advice to help you navigate your retirement journey
- Increase your retirement income by making the most of your social security
Self-Employed Retirement Plans in Henderson, NV: Correct Capital's Process
Henderson, NV business owners who lack the time, interest, or knowledge to oversee their own retirement planning independently often feel overwhelmed as they look at their available plans. At Correct Capital, our Henderson, NV financial advisors take on the majority of your savings plan setup for you, and strive to ensure meeting your future savings targets as easy as possible for you. We will guide you in creating your self-employed retirement plan in four simple steps:
- Schedule a Call: In just 20 minutes, a member of our advisor team can help understand if our services align for you and your business. This brief introduction allows us to understand what you're looking for with no obligation or extensive time commitment on your part.
- Gather Information: If we both decide to move forward, we'll ask for information, including whether you have employees, your present financial standing, and your future objectives. This enables us to craft a tailored approach that aligns with your goals.
- Review Your Plan: Once we've developed 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: When we finalize on your plan, we'll implement the necessary steps so you can start saving. As time goes on, we'll check in and monitor your plan to ensure it stays suited to your needs.
Our Henderson, NV financial advisors and retirement plan consultants act as fiduciary advisors, who are obligated to they are legally and ethically bound to prioritize your needs above all else.
Other financial advisory services we offer in Henderson, NV include:
- Family Wealth Planning
- 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
Call Correct Capital for Your Self-Employed Retirement Plan in Henderson, NV
Your business isn't "just a business" to you, and your Henderson, NV financial advisors must deliver more than basic financial recommendations. At Correct Capital, we take the time to get to know our clients and their businesses to deliver personalized self-employed retirement plans. We offer all our Henderson, NV clients 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.
