Self-employed retirement plans Norfolk, VA. The independence of being your own boss in Norfolk, VA is one of the greatest advantages of being self-employed. That said, this independence often comes with certain challenges, particularly regarding planning for retirement, because you don't have the benefit of a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, but many would be better off understanding their retirement options. In addition to achieving a financially stable retirement, working with a financial advisor in Norfolk, VA to create your self-employed retirement plan can provide significant tax advantages that allow your business to grow and succeed.
Few Norfolk, VA investment consulting and retirement planning firms are as attuned to the requirements of entrepreneurs better than 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 we have a rich history of assisting business owners in their retirement planning needs. We understand that your professional and personal aspirations aren’t limited to simple financial figures, and we strive to create tailored solutions to meet your unique goals. Continue exploring to find out about your self-employed retirement plan options in Norfolk, VA, or reach out to Correct Capital at 877-930-401k or contact us online to consult with a self-employed financial advisor in Norfolk, VA today.
Why Norfolk, VA Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also provide immediate benefits today. Offering flexibility in contributions to considerable tax savings, consulting a financial advisor in Norfolk, VA enables you to create your retirement plan to suit your specific needs.
Flexibility That Fits Your Income
When your earnings vary annually, a plan like a SEP IRA or Solo 401(k) offers the freedom to adjust how much you save:
- Customizable Contributions: Contribute more during successful years and cut back when income is lower, ensuring your plan fits your financial situation.
- Roth Options: A Roth Solo 401(k) lets you pay taxes on contributions now, allowing you to withdraw without tax penalties in the future—a wise move 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 shrink your tax liability, so you can keep more of your income.
- Tax-Deferred Growth: You won't pay taxes on investment growth until you withdraw it, which gives your money more time to accumulate.
- State-Specific Incentives: Based on your location, you may be eligible for state-specific tax breaks as a business owner. These state-level incentives can make these plans even more valuable.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can apply for 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
Creating a stable future requires more than how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Distributing your investments across varied asset classes like stocks and bonds can help minimize exposure to risk while continuing to build your retirement fund.
- Emergency Back-Up: Supplementing your retirement savings with a business emergency fund ensures you don’t dipping into savings during financial hardships and incurring penalties.
Plan for the Future of Your Norfolk, VA Business
Retirement planning enables you to think through what’s next with your Norfolk, VA business:
- Selling Your Business: When selling your business, retirement accounts like SEP IRAs and Solo 401(k)s remain your personal assets and are not part of the sale. These savings ensure the steady income you’ll need later on. Remember that while selling a business often leads to a capital gain, deposits into these plans are capped at annual limits (e.g., as much as $7,000 for IRAs or up to $70,000 for Solo 401(k)s, including catch-up contributions, based on plan compensation).
- Minimizing Taxes: Making the most of retirement savings can reduce the taxes you are required to pay when you transfer your business.
- Succession Planning: For those winding down or handing over their business, your retirement accounts provide financial security during the change. You can also work with a financial advisor with expertise in succession and retirement planning to reduce taxes on the sale.
With the proper savings strategy, you can take control of your financial future, cut down your tax obligations, and create a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Norfolk, VA Now?
Time remains one of the most crucial factors in retirement planning. Starting early not only helps you grow a more substantial retirement fund but also reduces the stress of catching up later in life. This is why it is beneficial to start now:
The Cost of Waiting
Delaying your retirement savings can have a significant impact on the total you’ll have when you reach retirement age. The primary reason is compound interest—the financial principle where your investments earn returns, and those returns, subsequently, earn even more returns. The more time your money has to grow, the larger the impact of this compounding process.
Example: Two individuals, Alex and Taylor are both entrepreneurs. 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 puts away $7,500 annually to bridge the gap.
By age 65, assuming 7% annual return:
- Alex puts in $180,000 and ends up with $691,184.39*.
- Taylor invests $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Regular, modest investments contributed over time often create impressive growth. Take a look at this 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 grow to approximately $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, simply due to a 10-year delay.
Starting sooner, the lower your annual savings needs each year to meet your retirement goals.
*These calculations represent estimates derived from NerdWallet’s Compound Interest Calculator, based on a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. The scenarios provided are intended as illustrative examples and cannot predict actual future outcomes. Actual results may vary depending on elements like market conditions, fees, and individual circumstances. Be sure to speak with a financial advisor for custom recommendations.
Take Control of Your Financial Future
If you’re self-employed in Norfolk, VA, it might seem easier to put more emphasis on reinvesting in your business rather than saving for retirement. That said, beginning a plan now gives you the chance to:
- Take advantage of tax-deferred growth or penalty-free withdrawals in the future.
- Enjoy adjustable savings that align with your income.
- Establish a safety net that offers peace of mind, no matter how your business evolves.
Getting started now, the less you’ll need to worry about making up for lost time later in life. Building your retirement savings today means managing your financial future and allowing yourself the ability to concentrate on your goals—both for your retirement years and your Norfolk, VA business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options available for self-employed individuals in Norfolk, VA, each providing its own advantages and considerations. A financial advisor can help you understand the advantages and disadvantages of each plan and identify the one most suitable for your unique situation. Generally speaking, your self-employed retirement plan options in Norfolk, VA are:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent retirement savings vehicles that include distinct tax benefits. In a traditional 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 from post-tax earnings, but qualified withdrawals in retirement, including earnings, are exempt from taxes. In both cases, withdrawals come without penalties as long as you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, both traditional and Roth IRAs are available to anyone with a source of 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 is a retirement plan that allows entrepreneurs to set aside a portion of their self-employment income. Contributions are strictly employer contributions an employer, so, as a self-employed individual, you (the employee) are limited to contributions from the employer role 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. You have the flexibility to contribute a flat-dollar amount or a percentage of wages to employee accounts. A SEP IRA works well for companies with periods of inconsistent earnings. In contrast to some alternatives, SEP IRAs are free of the high fees associated with starting or maintaining other plans.
SEPs function like standard IRAs, where the contributions are tax-deferred and money withdrawn is subject to income tax.
Eligibility: Any employer, including the self-employed can establish 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
For self-employed individuals, the contribution you can make 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 meant for businesses without employees or if the only employee is your spouse. This type of plan function similarly to employer-sponsored 401(k) plans, and let you make contributions as both an employee or an employer with pre-tax money. This offers more savings versus SEPs or IRAs; however, the increased savings potential may be offset 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: 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:
- Deferrals as an employee of up to 100% of your self-employment income, 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 for individuals aged 60-63 in 2025.
- Employer profit-sharing contributions (as an employer) must not surpass 25% of your net self-employment income, 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 if you're over age 50 (for 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: Defined benefit plans represents a type of retirement plan that guarantees a fixed, predetermined benefit to self-employed individuals upon retirement. Unlike defined contribution plans mentioned above, investment returns don’t affect the payout, but lets individuals clearly understand what they'll get in retirement. This strategy is ideal for wealthier self-employed individuals who want to save a substantial amount for retirement and can commit to making sizeable contributions. Contributions offer tax-deferred growth, and withdrawals incur taxes as income during retirement.
Eligibility: Any self-employed individual managing a one-person company or with less than five employees are eligible to open an individual defined benefit plan, but it's typically recommended for those over 50 who generate a minimum of $250,000 yearly. Typically, 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% and are willing to do more
- Organizations that have demonstrated consistent profit patterns
- Business leaders over age 40 who wish to accelerate savings or accelerate the retirement savings
Contribution Limits: The contribution limit must be determined by an actuary determined by your financial situation, age, and savings targets. Allowable contributions change annually.
The Importance of a Financial Advisor in Norfolk, VA for Your Self-Employed Retirement Plan
A financial advisor in Norfolk, VA focused on self-employed retirement strategies is an essential partner for self-employed individuals. They have the expertise to help navigate the complexities of retirement planning and design a customized plan that aligns with your goals. Your advisor in Norfolk, VA will evaluate your financial situation, understand your risk tolerance, and guide you in making informed decisions about saving and investing for retirement. A key part of what we do for you features:
- Help you choose a plan that suits your unique requirements
- Further adapt 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
- Review and modify your plan to keep it aligned with your goals
- Provide ongoing education and advice to help you navigate your retirement journey
- Maximize what you receive in retirement by maximizing your social security benefits
Self-Employed Retirement Plans in Norfolk, VA: Correct Capital's Process
Entrepreneurs in Norfolk, VA who aren’t equipped with the time or understanding to handle their retirement savings strategy on their own can become overwhelmed as they look at their options. At Correct Capital, our Norfolk, VA financial advisors take on the bulk of your savings plan setup for you, working to make meeting your future savings targets as straightforward as possible for you. We are here to assist you in setting 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 determine if we're a good fit for you and your business. This initial call helps us understand what you're looking for with no pressure or major time investment on your part.
- Gather Information: If we both decide to move forward, we'll request information, including whether you have employees, your existing financial picture, and your future objectives. This enables us to craft a tailored approach suited specifically for your needs.
- Review Your Plan: After we put together a plan using the information you provide, we'll sit down with you and discuss your plan step by step to make sure it's clear and show how it aligns with your goals.
- 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 have regular meetings and track your progress to make sure it remains aligned with your goals.
Our Norfolk, VA financial advisors and retirement plan consultants serve as fiduciary advisors, which means they are required by law and ethical standards to do what's in your best interest.
Other financial advisory services we offer in Norfolk, VA 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 Norfolk, VA
Your business isn't "just a business" to you, and your Norfolk, VA financial advisors must deliver more than simply sound financial advice. Correct Capital takes pride in, we focus on building a relationship with our clients and their businesses to deliver tailored self-employed retirement plans. We offer all our Norfolk, VA clients our I.O.U. promise: all of the advice you get from us will be independent, objective, and unbiased. To take the first step on your self-employment retirement plan, contact Correct Capital now at 877-930-401k or contact us online.
