Self-employed retirement plans Henderson, NV. The independence of running your own company in Henderson, NV is one of the greatest advantages of working for yourself. Even so, this independence sometimes brings with potential drawbacks, particularly when it comes to retirement savings, as you don't have the option of employer-sponsored retirement plans. Only 13% of self-employed individuals have a workplace retirement plan, although many could benefit from looking into other possibilities. In addition to enjoying a more secure retirement, working with a financial advisor in Henderson, NV to set up your self-employed retirement plan can provide significant tax advantages that enable both you and your business to thrive.
Few Henderson, NV investment consulting and retirement planning firms are as attuned to the requirements of small business owners quite like Correct Capital. The father of our founder was a small business owner himself (read more of our story here), and our firm are deeply experienced in assisting business owners in their retirement planning needs. We recognize that your professional and personal aspirations go far beyond just monetary concerns, and we work tirelessly to create tailored solutions to meet your unique goals. Read on to discover about your self-employed retirement plan options in Henderson, NV, or give us a call at Correct Capital at 877-930-401k or contact us online to talk to a self-employed financial advisor in Henderson, NV today.
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Why Henderson, NV Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals not only prepare you for the future, they also deliver real benefits today. Offering flexibility in contributions to substantial tax savings, working with a financial advisor in Henderson, NV enables you to design your retirement plan to suit your specific needs.
Flexibility That Fits Your Income
When your earnings vary over time, a plan like a SEP IRA or Solo 401(k) offers the freedom to tailor how much you save:
- Customizable Contributions: Contribute more during successful years and scale back when income is lower, so that your plan aligns with your financial situation.
- Roth Options: 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—a smart decision if you anticipate your tax rate to be higher in the future.
Save Money on Taxes
Retirement plans for self-employed individuals offer significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA reduce what you owe in taxes, helping you keep more of your hard-earned money.
- 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 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): Qualified participants 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
Planning for a safe retirement isn’t only about how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Spreading your investments across different stocks, bonds, and other assets serves to reduce risk while still growing your savings.
- Emergency Back-Up: Combining your retirement strategy and a dedicated business safety net helps you avoid tapping into your nest egg during financial hardships and incurring penalties.
Plan for the Future of Your Henderson, NV Business
A thoughtful retirement strategy enables you to plan ahead for what’s next with your Henderson, NV business:
- Selling Your Business: If you’re planning to sell, retirement accounts like SEP IRAs and Solo 401(k)s remain your personal assets and are not part of the sale. These accounts can provide the financial stability you’ll need during retirement. Remember that while selling a business often leads to a capital gain, retirement plan contributions are restricted by contribution limits (e.g., as much as $7,000 for IRAs or up to $70,000 for Solo 401(k)s, factoring in catch-up contributions, according to plan rules).
- Minimizing Taxes: Making the most of retirement savings helps lower the taxes you’ll owe when you sell your business.
- Succession Planning: If you’re passing the business on, your retirement accounts ensure the funds you need through the transition. You might want to work with a financial advisor experienced in both succession and retirement strategies to minimize tax burdens on the sale.
With the best-fit retirement strategy, you can take control of your financial future, lower your tax bill, and create a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Henderson, NV Now?
Time is one of the most valuable assets when it comes to saving for retirement. Getting a head start not only helps you grow a bigger financial cushion but also minimizes the financial burden of catching up later in life. This is why it is beneficial to start now:
The Cost of Waiting
Delaying your retirement savings may cause a significant impact on the total you’ll have when you reach retirement age. The main reason is compound interest—the powerful process where your investments earn returns, and those returns, in turn, earn even more returns. The longer your money has to grow, the more significant the impact of compounding.
Example: Taylor and Alex are both self-employed professionals. Their shared goal is to save $500,000 for retirement by age 65:
- Alex initiates savings of $5,000 annually at age 30.
- Taylor waits until age 40 but contributes $7,500 annually to make up for lost time.
By age 65, with an assumption of 7% annual return:
- Alex puts in $180,000 and achieves a total of $691,184.39*.
- Taylor contributes $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Even modest contributions made consistently can lead to substantial growth. Take a look at this scenario showing the power of consistent growth:
- Starting at age 25: If you invest $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: Saving the same $200 per month would result in only $235,412.97* by age 65—a difference of over $260,000, simply due to a 10-year delay.
Starting sooner, the less you need to save each year to reach your retirement goals.
*The numbers shown in this scenario are based on estimates generated with NerdWallet’s Compound Interest Calculator, assuming a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. These examples are intended as illustrative examples and are not a promise of future results. Outcomes may change due to variables including market conditions, fees, and your unique situation. Always consult a financial advisor for custom recommendations.
Take Control of Your Financial Future
For self-employed individuals in Henderson, NV, it can be tempting to focus more on reinvesting in your business instead of saving for retirement. However, starting a plan now allows you to:
- Benefit from tax-deferred growth or penalty-free withdrawals later on.
- Take advantage of adjustable savings that adapt to your earnings.
- Create a long-term safety measure that provides security, no matter how your business evolves.
Getting started now, the less you’ll be required to worry about playing catch-up later in life. Building your retirement savings today means managing your financial future and creating for yourself the opportunity to focus on your goals—both for your golden years and your Henderson, NV business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options designed for self-employed individuals in Henderson, NV, each with its own pros and cons. A financial advisor is available to help you learn about the pros and cons of each choice and identify the one most suitable for your needs. Typically, your self-employed retirement plan options in Henderson, NV include:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent financial tools for retirement that include specific tax advantages. In a standard IRA, the money you contribute is often tax-deductible, and investment earnings grow tax-deferred, but withdrawals in retirement are subject to income tax. In contrast, Roth IRA contributions using income already taxed, but qualified withdrawals in retirement, including earnings, are tax-free. In both types of accounts, withdrawals come without penalties if 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 taxable earnings.
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: SEP IRAs offers a way to save for retirement that permits self-employed individuals 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) would not be able to contribute above 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. You may choose to contribute a set monetary value or a percentage of wages to employee accounts. SEP IRAs works well for businesses that experience cycles of high revenue and low revenue. Unlike other plans, SEP IRAs lack costly startup or administrative fees.
SEPs operate like traditional IRAs, where you contribute pre-tax dollars and money withdrawn is subject to income tax.
Eligibility: Employers of any type, including 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
If you’re self-employed, the contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, commonly known as an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan meant for companies that have no employees or if the only employee is your spouse. This type of plan are similar to traditional employer-managed 401(k) plans, and allow you to contribute as both an employee or an employer with pre-tax money. This offers more savings compared to SEPs or IRAs; however, the increased savings potential often come with 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 can make two types of contributions:
- Employee contributions of up to 100% of your self-employed earnings, subject to the annual contribution limit. In 2025, those limits are $23,500, or $31,000 if you are 50 or older, or $34,750 if you attain age 60-63 in 2025.
- Profit-sharing contributions (as an employer) are limited to 25% of your net earnings from self-employment, which is defined as net profit minus half of your self-employment tax and the deferrals you made.
Total contributions are capped at $70,000, or $77,500 if you're over age 50 (as of 2025), $81,250 for individuals turning 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan 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 allows self-employed individuals to know what they'll have in retirement. This plan is best suited for higher-income entrepreneurs who aim to accumulate a significant sum for retirement and are prepared to contribute substantial contributions. Contributions grow tax-free until withdrawal, and withdrawals are taxed as income in retirement.
Eligibility: Self-employed professionals running an owner-only business or with a small staff of under five may establish an individual defined benefit plan, but it's generally suggested for individuals aged 50+ who make $250,000 or more annually. Typically, good candidates for defined benefit plans tend to be:
- Business owners or partners who want to invest more than $70,000 (or $77,500 for those aged 50+)
- Companies already contributing 3-4% but are open to increasing contributions
- Organizations that have demonstrated consistent profit patterns
- Partners or owners over age 40 who desire to "catch up" or accelerate the retirement savings
Contribution Limits: The maximum allowable contribution requires calculation from an actuary determined by your financial situation, age, and savings targets. Contribution limits are adjusted each year.
The Importance of a Financial Advisor in Henderson, NV for Your Self-Employed Retirement Plan
A financial advisor in Henderson, NV specialized in self-employed retirement plans serves as an important asset for self-employed individuals. They bring the skills needed to navigate the complexities of retirement planning and design a tailored strategy that matches your objectives. Your advisor in Henderson, NV will evaluate your financial situation, determine how much risk you’re comfortable with, and guide you in making informed decisions about saving and investing for retirement. Part of what we do for you features:
- Guide you in choosing a plan that aligns with your objectives and circumstances
- Further adapt the plan to your needs even further
- Create 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 when necessary
- Provide ongoing education and advice to help you navigate your retirement journey
- Boost your retirement earnings by optimizing your social security benefits
Self-Employed Retirement Plans in Henderson, NV: Correct Capital's Process
Self-employed individuals in Henderson, NV who aren’t equipped with the time or understanding to handle their own retirement planning themselves often feel overwhelmed by their options. Through our team at Correct Capital, our Henderson, NV financial advisors manage the majority of your savings plan setup for you, working to make meeting your financial objectives as easy as possible for you. We can help you get set up your self-employed retirement plan in a quick, four-step process:
- Schedule a Call: In just 20 minutes, a member of our advisor team can help understand if we're a good fit for you and your business. This initial call lets us get a sense of your goals with no obligation or significant effort on your part.
- Gather Information: If we both decide to move forward, we'll request information, including whether you have employees, your present financial standing, and your long-term savings targets. This enables us to craft a tailored approach suited specifically for your needs.
- Review Your Plan: When we finalize a plan based on the information you provide, we'll sit down with you and discuss your plan step by step to help you fully grasp it and understand how it best correlates to your needs.
- Implementation and Monitoring: Once we've agreed on your plan, we'll set everything up so you can initiate your savings journey. Over the course of our partnership, we'll meet with you and monitor your plan to keep it tailored to your evolving circumstances.
Our Henderson, NV 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 Henderson, NV 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 Henderson, NV
Your business isn't "just a business" to you, and your Henderson, NV financial advisors must deliver more than basic financial recommendations. With Correct Capital, we make it a priority to understand our clients and their businesses to deliver personalized self-employed retirement plans. We offer all our Henderson, NV clients our I.O.U. promise: everything we recommend 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.
