Self-employed retirement plans North Las Vegas, NV. The independence of running your own company in North Las Vegas, NV offers many benefits of having a self-directed career. Even so, this independence often comes with certain challenges, particularly regarding retirement savings, because you don't have access to employer-sponsored retirement plans. Only 13% of self-employed individuals have a workplace retirement plan, although many should consider understanding their retirement options. In addition to enjoying a more comfortable retirement, partnering with a financial advisor in North Las Vegas, NV to set up your self-employed retirement plan delivers significant tax advantages that help your business to grow and succeed.
Few North Las Vegas, NV financial advisory and retirement planning firms understand the needs of small business owners as well as Correct Capital. Our company’s founder grew up with a father who was a small business owner himself (read more of our story here), and our firm take pride in helping businesses with their retirement planning needs. We know that your goals for your business and retirement aren’t limited to just monetary concerns, and we work tirelessly to create tailored solutions that reflect your objectives. Read on to discover about your self-employed retirement plan options in North 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 North Las Vegas, NV today.
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Why North 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 deliver immediate benefits today. From flexible contributions to substantial tax savings, consulting a financial advisor in North Las Vegas, NV enables you to design your retirement plan to fit 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 flexibility to modify how much you save:
- Customizable Contributions: Save extra during successful years and reduce savings when revenues are down, so that your plan works with your financial situation.
- Roth Options: A Roth Solo 401(k) lets you settle taxes at the time of contribution, allowing you to withdraw your savings tax-free down the road—a smart decision if you believe your tax rate will increase in the future.
Save Money on Taxes
Retirement plans for self-employed individuals provide valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA shrink your tax liability, helping you keep more of your hard-earned money.
- Tax-Deferred Growth: You won't pay taxes on investment growth until you withdraw it, which gives your money more time to compound.
- State-Specific Incentives: Depending on where you live, you might access additional credits as a business owner. These state-level incentives make these plans even more beneficial.
- 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, helping to lower your tax bill even more.
Protect Your Savings With Smart Investments
Creating a stable future isn’t only about how much you save—it’s also about how you invest:
- Diversified Portfolios: Distributing your investments across a mix of asset classes like stocks and bonds is a smart way to reduce risk while continuing to build your nest egg.
- Emergency Back-Up: Combining your retirement strategy and a business emergency fund prevents you from dipping into savings during challenging periods and facing tax penalties.
Plan for the Future of Your North Las Vegas, NV Business
A thoughtful retirement strategy can assist you think through what’s next with your North 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 won’t be included in the sale. These accounts ensure the reliable income you’ll need in the future. It’s important to note that while selling your business results in a capital gain, contributions to retirement accounts 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, including catch-up contributions, based on plan compensation).
- Minimizing Taxes: Strategically planning your contributions minimizes the taxes you might face when you pass on your business.
- Succession Planning: Whether you’re transferring ownership, your retirement accounts provide the funds you need through the transition. You may also work with a financial advisor experienced in both succession and retirement strategies to help with taxes during the sale.
With the best-fit retirement strategy, you manage your financial future, reduce your tax burden, and create a strong framework 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 valuable assets in retirement planning. Beginning sooner rather than later not only helps you grow a bigger financial cushion but also minimizes the financial burden of playing catch-up as you get older. This is why it pays to take action now:
The Cost of Waiting
Delaying your retirement savings can have a major impact on the savings you’ll have when you stop working. The main reason is compound interest—the powerful process where your investments grow, and those returns, in turn, accumulate even more returns. The more time your money has to grow, the more significant the impact of this compounding process.
Example: Alex and Taylor are both self-employed individuals. 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 contributes $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 puts in $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Small, consistent savings made consistently may result in impressive growth. Consider this example showing the impact 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: Investing 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 less you need to save each year to meet your retirement goals.
*The numbers shown in this scenario are 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. Your individual results may differ due to factors such as market conditions, fees, and personal factors. We recommend consulting a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
If you’re self-employed in North Las Vegas, NV, it is often the case that you focus more on reinvesting in your business instead of saving for retirement. That said, initiating a plan now allows you to:
- Take advantage of tax-deferred growth or tax-free withdrawals in the future.
- Enjoy flexible contributions that align with your income.
- Establish a safety net that provides security, no matter how your business evolves.
Getting started now, the less you’ll be required to worry about playing catch-up later in life. Building your retirement savings today means managing your financial future and allowing yourself the opportunity to concentrate on your goals—both for your golden years and your North Las Vegas, NV business.
Types of Self-Employed Retirement Plans
There are several retirement savings options designed for self-employed individuals in North Las Vegas, NV, each offering its own benefits and trade-offs. A financial advisor can help you learn about the pros and cons of each option and determine the one best suited for your unique situation. In most cases, your self-employed retirement plan options in North Las Vegas, NV include:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent financial tools for retirement that offer key tax perks. In a conventional IRA, contributions are typically tax-deductible, and investment earnings grow tax-deferred, but withdrawals in retirement are taxed as income. In contrast, Roth IRAs require contributions from post-tax earnings, but eligible distributions during retirement, including earnings, are tax-free. In both types of accounts, withdrawals don’t incur penalties 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 accessible for individuals with taxable earnings.
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 is a retirement plan that enables those who are self-employed to set aside a portion of their self-employment income. Contributions are strictly employer contributions an employer, so, as a sole proprietor, you (the employee) cannot make additional contributions above the 25% you (the employer) already contributed. 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 flat-dollar amount or a percentage of wages to employee accounts. A SEP IRA may be ideal for entrepreneurs facing fluctuating revenue streams. In contrast to some alternatives, SEP IRAs are free of costly startup or administrative fees.
SEPs operate like conventional IRAs, where you contribute pre-tax dollars and retirement distributions are taxable.
Eligibility: Any employer, including the self-employed can set up 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, also called an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan intended for companies that have no employees or if the only employee is your spouse. This type of plan function similarly to employer-sponsored 401(k) plans, and enable contributions as both the employer and the employee with pre-tax money. This offers more savings versus SEPs or IRAs; however, the additional opportunities often come with more limited investment options. 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: 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 can 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 if you're over 50, or $34,750 if you attain age 60-63 in 2025.
- Employer profit-sharing contributions (as an employer) cannot exceed 25% of your net earnings from self-employment, which is your net profit minus half of your self-employment tax and the deferrals you made.
The total contribution cannot exceed $70,000, or $77,500 if you're over age 50 (in 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 set amount 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 what they'll get in retirement. This plan is ideal for high-earning self-employed individuals who want to save a substantial amount for retirement and can commit to making substantial contributions. Contributions offer tax-deferred growth, and withdrawals incur taxes as income upon retirement.
Eligibility: Entrepreneurs operating a solo business or employing fewer than five people can open an individual defined benefit plan, but it's generally advised for people above age 50 who generate a minimum of $250,000 yearly. 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)
- Companies already contributing 3-4% and are willing to do more
- Companies showing consistent profit patterns
- Business leaders over age 40 who desire to "catch up" or boost savings within a short timeframe
Contribution Limits: The contribution limit is calculated by an actuary determined by your earnings, age, and retirement objectives. Limits on 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 focused on self-employed retirement strategies can be an invaluable resource for those working for themselves. They bring the skills needed to understand the intricacies of saving for retirement and develop a personalized approach that reflects your aspirations. A financial advisor in North Las Vegas, NV will review your finances, identify your risk preferences, and guide you in selecting the best options about saving and investing for retirement. Part of what we do for you involves:
- Assist in selecting a plan that suits your unique requirements
- Customize the plan to your specific situation even further
- Formalize a plan in writing in accordance with IRS guidelines
- Set up an asset trust plan
- Ensure you comprehend the plan's terms
- Track and fine-tune 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 don’t have the time or expertise to manage their self-employed retirement plan themselves can become overwhelmed when faced with their choices. With Correct Capital, our North Las Vegas, NV financial advisors manage the bulk of your savings plan setup for you, working to make meeting your retirement goals as easy as possible for you. We will guide you in creating 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 help understand if we're suited to your needs for you and your business. This brief introduction lets us understand what you're looking for with zero commitment or major time investment on your part.
- Gather Information: Should we agree to proceed, we'll request information, including your employee count, your current financial situation, and your long-term savings targets. 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 go over your plan in detail to ensure you understand it and understand how it best correlates to your needs.
- Implementation and Monitoring: After we agree on your plan, we'll put everything in place so you can begin contributing. As time goes on, we'll have regular meetings and track your progress to ensure it stays suited to your needs.
Our North Las Vegas, NV financial advisors and retirement plan consultants serve as fiduciary advisors, meaning they are committed by law and ethics to prioritize your needs above all else.
Other financial advisory services we offer in North 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 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 simply sound financial advice. With Correct Capital, we focus on building a relationship with our clients and their businesses to deliver customized self-employed retirement plans. We offer all our North Las Vegas, NV clients our I.O.U. promise: all of the advice you get from us will be independent, objective, and unbiased. To get started on your self-employment retirement plan, contact Correct Capital now at 877-930-401k or contact us online.
