Self-employed retirement plans North Las Vegas, NV. The flexibility of owning your own business in North Las Vegas, NV is one of the greatest advantages of working for yourself. That said, this independence sometimes brings with potential drawbacks, notably in terms of building your retirement fund, since you don't have the option of employer-sponsored retirement plans. Only 13% of self-employed individuals have a workplace retirement plan, but many should consider looking into other possibilities. In addition to enjoying a financially stable retirement, working with a financial advisor in North Las Vegas, NV to create your self-employed retirement plan can provide significant tax advantages that allow both you and your business to thrive.
Few North Las Vegas, NV wealth management and retirement planning firms understand the needs of entrepreneurs as well as 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 supporting entrepreneurs with their retirement planning needs. We understand that your goals for your business and retirement go far beyond simple financial figures, and we strive to create personalized solutions aligned with your vision. Read on to discover about your self-employed retirement plan options in North Las Vegas, NV, or reach out to Correct Capital at 877-930-401k or contact us online to talk to a self-employed financial advisor in North Las Vegas, NV today.
Why North Las Vegas, NV Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also deliver tangible benefits today. Offering flexibility in contributions to substantial tax savings, consulting a financial advisor in North Las Vegas, NV helps you customize your retirement plan to fit your unique financial situation.
Flexibility That Fits Your Income
When your earnings vary from year to year, a plan like a SEP IRA or Solo 401(k) provides the flexibility to tailor how much you save:
- Customizable Contributions: Save extra during high-income years and reduce savings when revenues are down, so your plan works with your current income.
- Roth Options: A Roth Solo 401(k) lets you settle taxes at the time of contribution, so you can withdraw without tax penalties in the future—a smart decision if you expect your tax rate is likely to rise in the future.
Save Money on Taxes
Plans designed for the self-employed deliver significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA shrink your tax liability, helping you keep more of your income.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to accumulate.
- State-Specific Incentives: Based on your location, you could qualify for additional deductions as a sole proprietor. These regional incentives help make these plans even more advantageous.
- Retirement Savings Contributions Credit (Saver’s Credit): Eligible individuals can apply for 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 requires more than how much you save—it’s also linked to the way you invest:
- Diversified Portfolios: Spreading your investments across different asset classes like stocks and bonds serves to minimize exposure to risk while helping to grow your retirement fund.
- Emergency Back-Up: Supplementing your retirement savings with a financial buffer for your business helps you avoid tapping into your nest egg during financial hardships and incurring penalties.
Plan for the Future of Your North Las Vegas, NV Business
Retirement planning enables you to plan ahead for what’s next with your North Las Vegas, NV business:
- Selling Your Business: For those considering a sale, retirement accounts like SEP IRAs and Solo 401(k)s remain yours and won’t be included in the sale. These plans can provide the reliable income you’ll need in the future. Remember that while the sale of a business usually creates a capital gain, deposits into these plans are restricted by contribution limits (e.g., up to $7,000 for IRAs or up to $70,000 for Solo 401(k)s, with catch-up contributions, based on plan compensation).
- Minimizing Taxes: Making the most of retirement savings minimizes the taxes you’ll owe when you pass on your business.
- Succession Planning: For those winding down or handing over their business, your retirement savings ensure financial security as you make this shift. You can also work with a financial advisor who specializes in succession planning and retirement accounts to help with taxes associated with the transaction.
With the proper savings strategy, you can take control of your financial future, cut down your tax obligations, and build a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in North Las Vegas, NV Now?
Time is one of the most crucial assets when it comes to saving for retirement. Starting early not only lets you accumulate a bigger financial cushion but also minimizes the financial burden of saving aggressively in the future. The following are reasons why it makes sense to begin today:
The Cost of Waiting
Putting off saving for retirement can have a substantial impact on the amount you’ll have when you retire. The main reason is compound interest—the concept where your investments grow, and those returns, subsequently, generate even more returns. The longer your money has to grow, the larger the benefit 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 starts saving $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, using a projected 7% annual return:
- Alex invests $180,000 and achieves a total of $691,184.39*.
- Taylor puts in $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Small, consistent savings contributed over time often create significant growth. Take a look at this scenario showing the effect of compounding:
- Starting at age 25: Putting aside $200 per month in a retirement plan with an expected yearly growth rate of 7%, you’ll grow to approximately $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, just from a 10-year delay.
Saving early, the less effort required each year to achieve your retirement goals.
*These calculations represent estimates derived from 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 for illustrative purposes only and are not a promise of future results. Your individual results may differ due to variables including market conditions, fees, and your unique situation. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
As a self-employed person in North Las Vegas, NV, it might seem easier to focus more on reinvesting in your business over saving for retirement. Even so, initiating a plan now allows you to:
- Take advantage of tax-free future growth or withdrawals without taxes down the road.
- Benefit from flexible contributions that adapt to your cash flow.
- Establish a safety net that offers peace of mind, no matter how your business evolves.
Starting early, the less you’ll be required to worry about making up for lost time later in life. Building your retirement savings today means managing your financial future and creating for yourself the ability to concentrate on your goals—both for your future retirement and your North Las Vegas, NV business.
Types of Self-Employed Retirement Plans
There are several retirement savings options available for self-employed individuals in North Las Vegas, NV, each providing its own advantages and considerations. A financial advisor will guide you to understand the advantages and disadvantages of each choice and choose the one ideal for your circumstances. Typically, your self-employed retirement plan options in North Las Vegas, NV are:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are long-term savings plans that provide key tax perks. In a traditional IRA, contributions are typically tax-deductible, and earnings grow without immediate taxation, but retirement distributions are subject to income tax. In contrast, Roth IRAs require contributions are made with after-tax income, but qualified withdrawals in retirement, including earnings, are tax-free. In both cases, withdrawals don’t incur penalties if you are at least 59½.
Eligibility: Unlike plans linked to your job, traditional and Roth IRAs are available to anyone with a source of income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $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 save a percentage of their net business profits. Contributions can only be made by an employer, so, as a independent business owner, you (the employee) are limited to contributions from the employer role above the 25% you (the employer) have designated. 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 fixed dollar figure or a percentage of wages to employee accounts. This type of plan may be ideal for entrepreneurs facing periods of inconsistent earnings. Unlike other plans, SEP IRAs don’t have expensive setup or ongoing fees.
SEPs work like conventional IRAs, where the contributions are tax-deferred 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 amount eligible to be contributed is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, sometimes referred to as an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan designed for businesses without employees or where the only employee is a spouse. These plans function similarly to employer-sponsored 401(k) plans, and let you make contributions as both an employer and an employee with pre-tax money. This allows for more savings than SEPs or IRAs; however, the additional opportunities can be balanced by 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: Only 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 have the ability to make two types of contributions:
- Employee contributions 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.
- Contributions as an employer (as an employer) must not surpass 25% of your net self-employment income, which is calculated as net profits less half of your self-employment tax and the deferrals you made.
Your combined contributions must not surpass $70,000, or $77,500 for those aged 50 and older (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 provides a pre-established payout to business owners upon retirement. In contrast to the plans discussed earlier, this plan is not influenced by market performance, but allows self-employed individuals to know the precise amount they'll get in retirement. This strategy is best suited for high-earning professionals who aim to accumulate a significant sum for retirement and are willing to make larger deposits. Contributions are tax deferred, and withdrawals incur taxes as income upon retirement.
Eligibility: Entrepreneurs managing a one-person company or with less than five employees are eligible to open an individual defined benefit plan, but it's generally suggested for those over 50 who make $250,000 or more annually. In most cases, good candidates for defined benefit plans include:
- Entrepreneurs who desire to contribute more than $70,000 (or $77,500 if over age 50)
- Businesses currently investing 3-4% but are open to increasing contributions
- Businesses showing consistent profit patterns
- Entrepreneurs over age 40 who desire to "catch up" or accelerate the retirement savings
Contribution Limits: The cap on contributions is calculated by an actuary using your financial situation, age, and savings targets. Allowable contributions are adjusted each year.
The Importance of a Financial Advisor in North Las Vegas, NV for Your Self-Employed Retirement Plan
Partnering with an advisor in North Las Vegas, NV specialized in self-employed retirement plans is an essential partner for entrepreneurs. They offer the knowledge to assist guide you through the challenges of retirement planning and craft a personalized approach that aligns with your goals. Your advisor in North Las Vegas, NV will evaluate your financial situation, understand your risk tolerance, and assist you in making informed decisions about saving and investing for retirement. Included in what we do for you involves:
- Help you choose a plan that aligns with your objectives and circumstances
- Further adapt the plan to fit you personally even further
- Formalize a plan in writing in accordance with IRS guidelines
- Organize a trust plan to manage your assets
- Make sure you understand the plan's terms
- Monitor and adjust your plan when necessary
- Offer continued financial education and guidance to help you navigate your retirement journey
- Maximize what you receive in retirement by making the most of your social security
Self-Employed Retirement Plans in North Las Vegas, NV: Correct Capital's Process
North Las Vegas, NV business owners who aren’t equipped with the time or understanding to manage their self-employed retirement plan on their own can become overwhelmed by their options. At Correct Capital, our North Las Vegas, NV financial advisors handle the bulk of your retirement planning for you, to help make meeting your retirement goals as easy as possible for you. We are here to assist you in setting up your self-employed retirement plan in just four steps:
- Schedule a Call: It only takes 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 helps us get a sense of your goals with no pressure or major time investment on your part.
- Gather Information: If we both decide to move forward, we'll ask for information, including your employee count, your present financial standing, and your long-term savings targets. This enables us to craft a custom plan suited specifically for your needs.
- Review Your Plan: After we put together a plan from the information you provide, we'll sit down with you and review your plan in detail to make sure it's clear and show how it aligns with your goals.
- Implementation and Monitoring: After we agree on your plan, we'll implement the necessary steps so you can initiate your savings journey. As time goes on, we'll have regular meetings and track your progress to keep it tailored to your evolving circumstances.
Our North Las Vegas, NV financial advisors and retirement plan consultants act as fiduciary advisors, who are obligated to they are required by law and ethical standards to act in your best interest.
Other financial advisory services we offer in North Las Vegas, NV include:
- Investment Management
- 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 North Las Vegas, NV
Your business isn't "just a business" to you, and your North Las Vegas, 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 create personalized self-employed retirement plans. To every client in North Las Vegas, NV, we provide our I.O.U. promise: everything we recommend will be independent, objective, and unbiased. To get started on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.
