Self-employed retirement plans Las Vegas, NV. The flexibility of owning your own business in Las Vegas, NV offers many benefits of having a self-directed career. However, this flexibility sometimes brings with potential drawbacks, notably in terms of planning for retirement, 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 should consider exploring their options. In addition to enjoying a more comfortable retirement, seeking advice from a financial advisor in Las Vegas, NV to create your self-employed retirement plan can provide significant tax advantages that enable both you and your business to thrive.
Few Las Vegas, NV wealth management and retirement planning firms are as attuned to the requirements of self-employed individuals as well as Correct Capital. Our company’s founder grew up with a father who was a small business owner himself (learn more about our story here), and our firm are deeply experienced in helping businesses with their retirement planning needs. We recognize that your business and retirement aspirations aren’t limited to simple financial figures, and we strive to provide tailored solutions aligned with your vision. Keep reading to learn more about your self-employed retirement plan options in Las Vegas, NV, or give us a call at Correct Capital at 877-930-401k or contact us online to consult with a small business financial advisor in Las Vegas, NV today.
Why Las Vegas, NV Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals not only prepare you for the future, they also provide tangible benefits today. Offering flexibility in contributions to considerable tax savings, consulting a financial advisor in Las Vegas, NV allows you to customize your retirement plan to suit your specific needs.
Flexibility That Fits Your Income
If your income changes over time, a plan like a SEP IRA or Solo 401(k) provides the flexibility to modify how much you save:
- Customizable Contributions: Contribute more during profitable years and cut back when revenues are down, so 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 without tax penalties in the future—an advantageous choice if you expect your tax rate to be higher in the future.
Save Money on Taxes
Self-employed retirement plans deliver powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA reduce what you owe in taxes, 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 grow.
- State-Specific Incentives: Based on your location, you may be eligible for state-specific deductions as a business owner. These state-level incentives help make these plans even more beneficial.
- Retirement Savings Contributions Credit (Saver’s Credit): Those who meet the requirements can apply for a 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
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 asset classes like stocks and bonds can help mitigate financial risk while helping to grow your savings.
- Emergency Back-Up: Pairing your retirement plan with 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 Las Vegas, NV Business
Retirement planning can assist you think through what’s next with your Las Vegas, NV business:
- Selling Your Business: When selling your business, retirement accounts like SEP IRAs and Solo 401(k)s stay in your name and are not part of the sale. These plans offer the steady income you’ll need in the future. Keep in mind that while the sale of a business usually creates a capital gain, retirement plan contributions are subject to yearly maximums (e.g., as much as $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: Strategically planning your contributions minimizes the taxes you’ll owe when you pass on your business.
- Succession Planning: Whether you’re transferring ownership, your nest egg ensure a stable foundation during the change. You can also work with a financial advisor experienced in both succession and retirement strategies to minimize tax burdens associated with the transaction.
With the right retirement plan, you manage your financial future, cut down your tax obligations, and establish a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Las Vegas, NV Now?
Time is one of the most crucial assets in retirement planning. Starting early not only lets you accumulate a bigger financial cushion but also lowers 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
Waiting to start your retirement fund may cause a significant impact on the total you’ll have when you retire. The main reason is compound interest—the powerful process where your investments generate earnings, and those returns, subsequently, accumulate even more returns. The longer your money has to grow, the greater the effect of this compounding process.
Example: Taylor and Alex are both self-employed individuals. 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 saves $7,500 annually to catch up.
By age 65, assuming 7% annual return:
- Alex contributes $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 may result in impressive growth. Take a look at this scenario 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 accumulate $497,303.29* by age 65.
- Starting at age 35: Investing the same $200 per month would result in only $235,412.97* by age 65—a difference of over $260,000, just from a 10-year delay.
Saving early, the lower your annual savings needs each year to achieve your retirement goals.
*The figures provided in this example are estimates generated with NerdWallet’s Compound Interest Calculator, with the assumption of 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 based on variables including market conditions, fees, and your unique situation. Be sure to speak with a financial advisor for custom recommendations.
Take Control of Your Financial Future
If you’re self-employed in Las Vegas, NV, it might seem easier to put more emphasis on reinvesting in your business rather than saving for retirement. That said, initiating a plan now allows you to:
- Leverage tax-free future growth or tax-free withdrawals down the road.
- Enjoy flexible contributions that adapt to your income.
- Establish a financial cushion that provides security, no matter how your business changes.
The sooner you start, the less you’ll need to worry about making up for lost time later in life. Saving for retirement now means managing your financial future and creating for yourself the freedom to turn your attention to your objectives—both for your retirement years and your Las Vegas, NV business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options designed for entrepreneurs in Las Vegas, NV, each offering its own benefits and trade-offs. A financial advisor will guide you to evaluate the advantages and disadvantages of each plan and determine the one most suitable for your circumstances. Generally speaking, your self-employed retirement plan options in Las Vegas, NV include:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are financial tools for retirement that include key tax perks. In a standard IRA, the money you contribute is often tax-deductible, and returns grow free of current taxes, but money taken out during retirement are taxable. In contrast, Roth IRAs require contributions are made with after-tax income, but eligible distributions during retirement, including earnings, are exempt from taxes. In both 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 accessible for individuals with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs remain $7,000, or $8,000 for those aged 50+.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: The Simplified Employee Pension IRA serves as a retirement savings option that allows entrepreneurs to save a percentage of their net business profits. Contributions can only be made by an employer, so, as a self-employed individual, you (the employee) cannot make additional contributions more than the 25% you (the employer) allocate. If you have employees, it's required 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. A SEP IRA is a good option for entrepreneurs facing fluctuating revenue streams. Compared to other retirement options, SEP IRAs don’t have the high fees associated with starting or maintaining other plans.
SEPs operate like conventional 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 the lesser of:
- 25% of compensation, or
- $70,000 for 2025
For self-employed individuals, the contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: The Solo 401(k), sometimes referred to as an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan meant for companies that have no employees or if the only employee is your spouse. Solo 401(k)s function similarly to standard 401(k) plans, and let you make contributions as both the employer and the employee with pre-tax money. This offers more savings compared to SEPs or IRAs; however, the extra savings options can be balanced by more restricted investment choices. With this type of 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 earned income from self-employment, up to the annual contribution limit. For 2025, the limits will be $23,500, or $31,000 if you're over 50, or $34,750 if you attain age 60-63 in 2025.
- Contributions as an employer (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.
Total contributions are capped at $70,000, or $77,500 for those aged 50 and older (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 guarantees a fixed, predetermined benefit to self-employed individuals upon retirement. Unlike defined contribution plans mentioned above, a defined benefit plan doesn't fluctuate based on investment returns, but enables participants to determine exactly how much they'll get in retirement. This plan is best suited for wealthier self-employed individuals who want to save a large amount for retirement and are prepared to contribute larger deposits. Contributions grow tax-free until withdrawal, and withdrawals incur taxes as income upon retirement.
Eligibility: Any self-employed individual operating a solo business or employing fewer than five people may establish an individual defined benefit plan, but it's typically advised for those over 50 who earn at least $250,000 a year. Generally, good candidates for defined benefit plans tend to be:
- Entrepreneurs who desire to contribute more than $70,000 (or $77,500 if over age 50)
- Companies already contributing 3-4% and are willing to do more
- Businesses that have demonstrated consistent profit patterns
- Partners or owners over age 40 who wish to accelerate savings or boost savings within a short timeframe
Contribution Limits: The cap on contributions requires calculation from an actuary based on your income, age, and retirement goals. Allowable contributions change annually.
The Importance of a Financial Advisor in Las Vegas, NV for Your Self-Employed Retirement Plan
Partnering with an advisor in Las Vegas, NV experienced with retirement plans for the self-employed serves as an essential partner for entrepreneurs. They have the expertise to help navigate the complexities of retirement planning and design a personalized approach that reflects your aspirations. An expert in your area will assess where you stand financially, understand your risk tolerance, and assist you in making informed decisions about saving and investing for retirement. Part of what we do for you includes:
- Help you choose a plan that aligns with your objectives and circumstances
- Tailor the plan to your needs even further
- Create a written plan as required by IRS rules
- Set up an asset trust plan
- Help you understand the plan's terms
- Monitor and adjust your plan when necessary
- Deliver continuous support and financial insights to help you navigate your retirement journey
- Boost your retirement earnings by making the most of your social security
Self-Employed Retirement Plans in Las Vegas, NV: Correct Capital's Process
Entrepreneurs in Las Vegas, NV who don’t have the time or expertise to manage their own retirement planning themselves may end up overwhelmed by their options. At Correct Capital, our Las Vegas, NV financial advisors take on the majority of your retirement strategy for you, to help make meeting your retirement goals as hassle-free as possible for you. We can help you get set 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 suited to your needs for you and your business. This brief introduction allows us to learn about your needs with no pressure or significant effort on your part.
- Gather Information: Once we mutually decide to continue, we'll gather information, including how many employees you have (if any), your present financial standing, and your long-term savings targets. 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 schedule a meeting and review your plan step by step to ensure you understand it and explain its fit to your circumstances.
- Implementation and Monitoring: After we agree on your plan, we'll set everything up so you can begin contributing. Over the course of our partnership, we'll check in and monitor your plan to ensure it stays suited to your needs.
Our Las Vegas, NV financial advisors and retirement plan consultants are fiduciary advisors, which means they are required by law and ethical standards to prioritize your needs above all else.
Other financial advisory services we offer in Las Vegas, NV 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 Las Vegas, NV
You don't see your business as "just a business", and your Las Vegas, NV financial advisors need to offer more than just good financial guidance. With Correct Capital, we make it a priority to understand our clients and their businesses to provide personalized self-employed retirement plans. We offer all our Las Vegas, NV clients our I.O.U. promise: all of the advice you get from us will be independent, objective, and unbiased. To begin on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.
