Self-employed retirement plans Las Vegas, NV. The independence of owning your own business in Las Vegas, NV is one of the greatest advantages of being self-employed. That said, this flexibility can come with certain challenges, notably when it comes to retirement savings, as you don't have the option of retirement programs through an employer. Only 13% of self-employed individuals have a workplace retirement plan, but many could benefit from looking into other possibilities. In addition to enjoying a more secure retirement, seeking advice from a financial advisor in Las Vegas, NV to set up your self-employed retirement plan delivers significant tax advantages that help you to move your business forward.
Few Las Vegas, NV investment consulting and retirement planning firms are as attuned to the requirements of self-employed individuals quite like Correct Capital. Our founder's father was a small business owner himself (check out our story here), and our firm take pride in assisting business owners in their retirement planning needs. We recognize that your professional and personal aspirations aren’t limited to just monetary concerns, and we work tirelessly to offer customized solutions aligned with your vision. Read on to discover 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 speak with a entrepreneurial financial advisor in Las Vegas, NV today.
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Why Las Vegas, NV Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals are essential for preparing you for the future, they also provide real benefits today. With customizable contribution options to substantial tax savings, working with a financial advisor in Las Vegas, NV helps you design your retirement plan to suit your specific needs.
Flexibility That Fits Your Income
For those with fluctuating income annually, a plan like a SEP IRA or Solo 401(k) offers the freedom to tailor how much you save:
- Customizable Contributions: Contribute more during profitable years and cut back when revenues are down, ensuring your plan fits your cash flow.
- Roth Options: A Roth Solo 401(k) lets you pay taxes on contributions now, enabling you to withdraw tax-free later—an advantageous choice if you anticipate 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 SEP IRA shrink your tax liability, so you can keep more of your earnings.
- Tax-Deferred Growth: You won't pay taxes on investment growth until you withdraw it, providing your money more time to grow.
- State-Specific Incentives: Based on your location, you may be eligible for additional tax breaks as a business owner. These local incentives help 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 they contribute a retirement plan, helping to lower your tax bill even more.
Protect Your Savings With Smart Investments
Creating a stable future requires more than how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Allocating your investments across a mix of stocks, bonds, and alternatives is a smart way to minimize exposure to risk while still growing your nest egg.
- Emergency Back-Up: Pairing your retirement plan with a financial buffer for your business prevents you from using your retirement funds during financial hardships and facing tax penalties.
Plan for the Future of Your Las Vegas, NV Business
A thoughtful retirement strategy enables you to prepare for what’s next with your Las Vegas, NV business:
- Selling Your Business: For those considering a sale, plans like SEP IRAs or 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 in the future. It’s important to note that while selling your business results in a capital gain, deposits into these plans are capped at annual limits (e.g., as much as $7,000 for IRAs or as much as $70,000 for Solo 401(k)s, including catch-up contributions, according to plan rules).
- Minimizing Taxes: Using retirement contributions wisely minimizes the taxes you are required to pay when you sell your business.
- Succession Planning: If you’re passing the business on, your nest egg offer financial security during the change. You might want to work with a financial advisor who specializes in succession planning and retirement accounts to minimize tax burdens on the sale.
With the best-fit retirement strategy, you gain control over your financial future, reduce your tax burden, 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 when it comes to saving for retirement. Beginning sooner rather than later not only helps you grow a larger nest egg but also reduces the stress of saving aggressively in the future. The following are reasons why it pays to take action now:
The Cost of Waiting
Waiting to start your retirement fund could lead to a major impact on the total you’ll have when you retire. The primary reason is compound interest—the concept where your investments generate earnings, and those returns, in turn, generate even more returns. The greater time span your money has to grow, the greater the impact of this compounding process.
Example: Alex and Taylor 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 bridge the gap.
By age 65, using a projected 7% annual return:
- Alex puts in $180,000 and ends up with $691,184.39*.
- Taylor invests $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Even modest contributions contributed over time often create substantial growth. Here’s a simple scenario showing the effect of consistent growth:
- Starting at age 25: By investing $200 per month in a retirement plan with an projected return of 7%, you’ll end up with $497,303.29* by age 65.
- Starting at age 35: Contributing 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 meet your retirement goals.
*The numbers shown in this scenario are based on estimates generated with NerdWallet’s Compound Interest Calculator, based on a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. These examples are meant to provide general guidance and cannot predict actual future outcomes. Outcomes may change based on variables including market conditions, fees, and personal factors. We recommend consulting a financial advisor for personalized advice.
Take Control of Your Financial Future
If you’re self-employed in Las Vegas, NV, it can be tempting to prioritize reinvesting in your business over saving for retirement. That said, beginning a plan now gives you the chance to:
- Leverage tax-deferred growth or withdrawals without taxes later on.
- Enjoy flexible contributions that adapt to your income.
- Build a long-term safety measure that ensures stability, no matter how your business evolves.
The sooner you start, the less you’ll be required to worry about playing catch-up later in life. Saving for retirement now means gaining control over your financial future and creating for yourself the opportunity to turn your attention to your objectives—both for your future retirement and your Las Vegas, NV business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options open for self-employed individuals in Las Vegas, NV, each providing its own advantages and considerations. A financial advisor will guide you to evaluate the advantages and disadvantages of each choice and determine the one ideal for your needs. Generally speaking, your self-employed retirement plan options in Las Vegas, NV are:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent retirement savings vehicles that offer key tax perks. In a standard IRA, contributions are typically tax-deductible, and returns grow free of current taxes, but withdrawals in retirement are taxable. In contrast, Roth IRAs require contributions using income already taxed, but eligible distributions during retirement, including earnings, are not taxed. In both accounts, withdrawals are penalty-free provided you are at least 59½.
Eligibility: While many retirement plans, such as 401(k)s, are tied to employment, both traditional and Roth IRAs are open to those with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 if you qualify for catch-up contributions.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA serves as a retirement savings option that enables those who are self-employed to contribute a percentage of their net earnings. Contributions can only be made by an employer, so, as a sole proprietor, you (the employee) would not be able to contribute beyond 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. You have the flexibility to contribute a set monetary value or a percentage of wages to employee accounts. This type of plan may be ideal for entrepreneurs facing fluctuating revenue streams. Compared to other retirement options, SEP IRAs lack expensive setup or ongoing 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 open a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA must not exceed:
- 25% of compensation, or
- $70,000 for 2025
As a self-employed person, the contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: A Solo 401(k) plan, commonly known as 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. These plans function similarly to traditional employer-managed 401(k) plans, and allow you to contribute as both an employee or an employer with pre-tax money. This provides more savings than SEPs or IRAs; however, the increased savings potential often come with more restricted investment choices. Using a solo 401(k), you can make either traditional or Roth deferrals, which have 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: As a self-employed individual 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. The contribution limits for 2025 include $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 net self-employment income, which is calculated as net profits less half of your self-employment tax and the elective deferrals you made.
Your combined contributions must not surpass $70,000, or $77,500 for individuals aged 50+ (for 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 pre-established payout to entrepreneurs upon retirement. In contrast to the plans discussed earlier, investment returns don’t affect the payout, but allows self-employed individuals to know the precise amount they'll receive in retirement. This option is ideal for wealthier entrepreneurs who are focused on saving a significant sum for retirement and can commit to making substantial contributions. Contributions are tax deferred, and withdrawals are taxed as income during retirement.
Eligibility: Entrepreneurs managing a one-person company or with less than five employees can open an individual defined benefit plan, but it's generally advised for people above age 50 who make $250,000 or more annually. Generally, good candidates for defined benefit plans tend to be:
- Partners or owners who desire to contribute more than $70,000 (or $77,500 if over age 50)
- Organizations that already put in 3-4% and are willing to do more
- Organizations that have demonstrated consistent profit patterns
- Partners or owners over age 40 who aim to quickly build retirement savings or increase their retirement contributions rapidly
Contribution Limits: The cap on contributions 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 Las Vegas, NV for Your Self-Employed Retirement Plan
Partnering with an advisor in Las Vegas, NV specialized in self-employed retirement plans can be an important asset for those working for themselves. They bring the skills needed to guide you through the challenges of retirement planning and develop a personalized approach that reflects your aspirations. An expert in your area 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:
- Help you choose a plan that best fits your needs and goals
- Tailor the plan to your needs even further
- Create a written plan as required by IRS rules
- Organize a trust plan to manage your assets
- Ensure you comprehend the plan's terms
- Monitor and adjust your plan to keep it aligned with your goals
- Provide ongoing education and advice as you continue on the road to retirement
- Maximize what you receive in retirement 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 lack the time, interest, or knowledge to oversee their own retirement planning themselves can become overwhelmed as they look at their available plans. Through our team at Correct Capital, our Las Vegas, NV financial advisors manage the bulk of your savings plan setup for you, and strive to ensure meeting your retirement goals as hassle-free 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: In just 20 minutes, a member of our advisor team will assess if we're a good fit for you and your business. This brief introduction lets us get a sense of your goals with zero commitment or significant effort on your part.
- Gather Information: Should we agree to proceed, we'll gather information, including your employee count, your existing financial picture, and your long-term savings targets. This enables us to craft a personalized strategy designed just for you.
- Review Your Plan: Once we've developed a plan from the information you provide, we'll meet with you and go over your plan thoroughly 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 start saving. Throughout our relationship, we'll have regular meetings and track your progress to make sure it remains aligned with your goals.
Our Las Vegas, NV financial advisors and retirement plan consultants act as fiduciary advisors, meaning they are committed by law and ethics to do what's in your best interest.
Other financial advisory services we offer in Las Vegas, 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 Las Vegas, NV
You don't see your business as "just a business", and your Las Vegas, NV financial advisors must deliver more than basic financial recommendations. At Correct Capital, we make it a priority to understand our clients and their businesses to create tailored self-employed retirement plans. We offer all our Las Vegas, NV clients our I.O.U. promise: everything we recommend will be independent, objective, and unbiased. To take the first step on your self-employment retirement plan, reach out to Correct Capital at 877-930-401k or contact us online.
