Self-employed retirement plans Jacksonville, FL. The freedom of owning your own business in Jacksonville, FL is one of the greatest advantages of being self-employed. However, this independence often comes with a lack of security, especially when it comes to building your retirement fund, because you don't have the option of employer-sponsored retirement plans. Only 13% of self-employed individuals have a workplace retirement plan, yet countless would be better off looking into other possibilities. In addition to achieving a more secure retirement, working with a financial advisor in Jacksonville, FL to establish your self-employed retirement plan can provide significant tax advantages that allow both you and your business to thrive.
Few Jacksonville, FL financial advisory and retirement planning firms truly grasp the challenges faced by small business owners quite like 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 have a rich history of helping businesses with their retirement planning needs. We know that your professional and personal aspirations aren’t limited to simple financial figures, and we work tirelessly to create customized solutions to meet your unique goals. Read on to discover about your self-employed retirement plan options in Jacksonville, FL, or reach out to Correct Capital at 877-930-401k or contact us online to speak with a entrepreneurial financial advisor in Jacksonville, FL today.
Why Jacksonville, FL 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. With customizable contribution options to substantial tax savings, consulting a financial advisor in Jacksonville, FL allows you to create your retirement plan to align with your unique financial situation.
Flexibility That Fits Your Income
If your income changes from year to year, a plan like a SEP IRA or Solo 401(k) offers the option to adjust how much you save:
- Customizable Contributions: Save extra during profitable years and cut back when revenues are down, so your plan works with your cash flow.
- Roth Options: Choosing a Roth Solo 401(k) lets you pay taxes on contributions now, allowing you to withdraw without tax penalties in the future—an advantageous choice if you anticipate your tax rate to be higher in the future.
Save Money on Taxes
Self-employed retirement plans deliver significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA lower your taxable income, allowing you to keep more of your hard-earned money.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, which gives your money more time to accumulate.
- State-Specific Incentives: In some states, you could qualify for additional credits as a sole proprietor. These local incentives make these plans even more valuable.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can claim a tax credit of up to 50% of the first $2,000 contributed a retirement plan, further reducing your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement isn’t only about how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Spreading your investments across a mix of stocks, bonds, and other assets is a smart way to minimize exposure to risk while continuing to build your nest egg.
- Emergency Back-Up: Pairing your retirement plan with a financial buffer for your business ensures you don’t dipping into savings during financial hardships and risking extra costs.
Plan for the Future of Your Jacksonville, FL Business
Retirement planning can assist you prepare for what’s next with your Jacksonville, FL business:
- Selling Your Business: When selling your business, accounts such as SEP IRAs or Solo 401(k)s remain your personal assets and don’t transfer with the business. These accounts 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., as much as $7,000 for IRAs or up to $70,000 for Solo 401(k)s, with catch-up contributions, depending on plan details).
- Minimizing Taxes: Using retirement contributions wisely can reduce the taxes you might face when you sell your business.
- Succession Planning: If you’re passing the business on, your nest egg 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 reduce taxes during the sale.
With the best-fit retirement strategy, you manage your financial future, lower your tax bill, and create a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Jacksonville, FL Now?
Time remains one of the most important factors in retirement planning. Starting early not only helps you grow a more substantial retirement fund but also lowers the stress of playing catch-up as you get older. This is why it is beneficial to start now:
The Cost of Waiting
Delaying your retirement savings may cause a major impact on the total you’ll have when you retire. The biggest reason is compound interest—the concept where your investments grow, and those returns, then, generate even more returns. The longer your money has to grow, the larger the benefit of compounding.
Example: Taylor and Alex are both self-employed professionals. They each aim to save $500,000 for retirement by age 65:
- Alex begins contributing $5,000 annually at age 30.
- Taylor postpones starting contributions to age 40 but saves $7,500 annually to make up for lost time.
By age 65, with an assumption of 7% annual return:
- Alex invests $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
Even modest contributions made consistently can lead to impressive growth. Here’s a simple 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: Contributing the same $200 per month would result in only $235,412.97* by age 65—a shortfall of over $260,000, simply due to a 10-year delay.
The earlier you begin, the less effort required each year to meet your retirement goals.
*The numbers shown in this scenario are estimates calculated using NerdWallet’s Compound Interest Calculator, based on a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. This information is meant to provide general guidance and cannot predict actual future outcomes. Actual results may vary due to variables including market conditions, fees, and personal factors. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
If you’re self-employed in Jacksonville, FL, it can be tempting to focus more on reinvesting in your business rather than saving for retirement. However, starting a plan now gives you the chance to:
- Leverage growth that is tax-deferred or withdrawals without taxes later on.
- Benefit from contribution flexibility that change with your income.
- Build a long-term safety measure that offers peace of mind, no matter how your business develops.
The sooner you start, the less you’ll be required to worry about catching up later in life. Saving for retirement now means taking control of your financial future and giving yourself the ability to turn your attention to your dreams—both for your golden years and your Jacksonville, FL business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options open for entrepreneurs in Jacksonville, FL, each with its own pros and cons. A financial advisor is available to help you learn about the benefits and drawbacks of each option and determine the one best suited for your circumstances. Generally speaking, your self-employed retirement plan options in Jacksonville, FL consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are financial tools for retirement that include specific tax advantages. In a standard IRA, you can usually deduct your contributions from taxable income, and returns grow free of current taxes, but money taken out during retirement are subject to income tax. In contrast, Roth IRAs require contributions from post-tax earnings, but eligible distributions during retirement, including earnings, are not taxed. In both cases, withdrawals are penalty-free provided you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, traditional and Roth IRAs are open to those with taxable earnings.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $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 allows those who are self-employed to save a percentage of their net business profits. Contributions are strictly employer contributions an employer, so, as a sole proprietor, you (the employee) would not be able to contribute more than the 25% you (the employer) already contributed. 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 fixed dollar figure or a percentage of wages to employee accounts. SEP IRAs works well for companies with fluctuating revenue streams. In contrast to some alternatives, SEP IRAs lack costly startup or administrative fees.
SEPs function like conventional IRAs, where you contribute pre-tax dollars and retirement distributions are taxable.
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
As a self-employed person, the amount eligible to be contributed is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, also called an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan intended for businesses without 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 the employer and the employee with pre-tax money. This allows for more savings compared to SEPs or IRAs; however, the extra savings options can be balanced by more restricted investment choices. In a solo 401(k) plan, you can make either traditional or Roth deferrals, which have 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: For self-employed individuals with a solo 401(k) plan, you have the ability 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. For 2025, the limits will be $23,500, or $31,000 for those aged 50 and above, or $34,750 for those who turn 60-63 in 2025.
- Profit-sharing contributions (as an employer) are limited to 25% of your adjusted self-employment income, which is calculated as net profits less 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 (as of 2025), $81,250 for individuals turning 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. Unlike defined contribution plans mentioned above, investment returns don’t affect the payout, but enables participants to determine exactly how much they'll have in retirement. This option is recommended for wealthier entrepreneurs who are focused on saving a substantial amount for retirement and are willing to make sizeable contributions. Contributions are tax deferred, and withdrawals incur taxes as income upon retirement.
Eligibility: Entrepreneurs 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 recommended for individuals aged 50+ who make $250,000 or more annually. Typically, good candidates for defined benefit plans include:
- Entrepreneurs 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
- Companies with proven consistent profit patterns
- Entrepreneurs over age 40 who desire to "catch up" or increase their retirement contributions rapidly
Contribution Limits: The contribution limit requires calculation from an actuary determined by your earnings, age, and retirement objectives. Contribution limits change annually.
The Importance of a Financial Advisor in Jacksonville, FL for Your Self-Employed Retirement Plan
Partnering with an advisor in Jacksonville, FL experienced with retirement plans for the self-employed is an essential partner for those working for themselves. They bring the skills needed to understand the intricacies of saving for retirement and craft a tailored strategy that reflects your aspirations. A financial advisor in Jacksonville, FL 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 features:
- Guide you in choosing a plan that suits your unique requirements
- Customize the plan to your needs even further
- Create a written plan that complies with IRS regulations
- Arrange a trust plan for assets
- Make sure you understand the plan's terms
- Track and fine-tune your plan when necessary
- Offer continued financial education and guidance throughout your retirement planning process
- Boost your retirement earnings by optimizing your social security benefits
Self-Employed Retirement Plans in Jacksonville, FL: Correct Capital's Process
Jacksonville, FL business owners who aren’t equipped with the time or understanding to oversee their own retirement planning themselves often feel overwhelmed by their choices. At Correct Capital, our Jacksonville, FL financial advisors manage the lion's share of your savings plan setup for you, working to make meeting your retirement goals as easy as possible for you. We can help you get set up 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 short conversation allows us to learn about your needs with zero commitment or major time investment on your part.
- Gather Information: Once we mutually decide to continue, we'll request information, including whether you have employees, your current financial situation, and your retirement goals. This helps us create a tailored approach designed just for you.
- Review Your Plan: After we put together a plan using the information you provide, we'll schedule a meeting 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: When we finalize on your plan, we'll implement the necessary steps so you can begin contributing. As time goes on, we'll meet with you and monitor your plan to ensure it stays suited to your needs.
Our Jacksonville, FL financial advisors and retirement plan consultants are fiduciary advisors, which means they are required by law and ethical standards to act in your best interest.
Other financial advisory services we offer in Jacksonville, 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 Jacksonville, FL
To you, your business is more than "just a business", and your Jacksonville, FL financial advisors must deliver more than simply sound financial advice. At Correct Capital, we take the time to get to know our clients and their businesses to provide tailored self-employed retirement plans. All our clients in Jacksonville, FL 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.
