Self-employed retirement plans Oklahoma City, OK. The independence of being your own boss in Oklahoma City, OK is one of the greatest advantages of being self-employed. However, this freedom sometimes brings with certain challenges, especially when it comes to 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 looking into other possibilities. In addition to enjoying a financially stable retirement, seeking advice from a financial advisor in Oklahoma City, OK to set up your self-employed retirement plan can provide significant tax advantages that help your business to grow and succeed.
Few Oklahoma City, OK financial advisory and retirement planning firms are as attuned to the requirements of entrepreneurs better than Correct Capital. Our founder's father was a small business owner himself (learn more about our story here), and we have a rich history of supporting entrepreneurs with their retirement planning needs. We recognize that your goals for your business and retirement aren’t limited to simple financial figures, and we are dedicated to create personalized solutions that reflect your objectives. Continue exploring to find out about your self-employed retirement plan options in Oklahoma City, OK, or call Correct Capital at 877-930-401k or contact us online to speak with a small business financial advisor in Oklahoma City, OK today.
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Why Oklahoma City, OK Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also offer tangible benefits today. Offering flexibility in contributions to considerable tax savings, partnering with a financial advisor in Oklahoma City, OK helps you design your retirement plan to suit your individual circumstances.
Flexibility That Fits Your Income
When your earnings vary over time, a plan like a SEP IRA or Solo 401(k) offers the freedom to adjust how much you save:
- Customizable Contributions: Set aside more during profitable years and cut back when income is lower, ensuring your plan aligns with your cash flow.
- Roth Options: A Roth Solo 401(k) lets you handle taxes upfront, enabling you to withdraw your savings tax-free down the road—a wise move if you expect your tax rate is likely to rise in the future.
Save Money on Taxes
Self-employed retirement plans offer powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA shrink your tax liability, helping you keep more of your earnings.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, providing your money more time to compound.
- State-Specific Incentives: Based on your location, you could qualify for state-specific deductions as a business owner. These local incentives can make these plans even more valuable.
- Retirement Savings Contributions Credit (Saver’s Credit): Those who meet the requirements can take advantage of a credit of up to 50% of the first $2,000 put into a retirement plan, further reducing your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement goes beyond just how much you save—it’s also about how you invest:
- Diversified Portfolios: Spreading your investments across a mix of asset classes like stocks and bonds serves to mitigate financial risk while helping to grow your nest egg.
- Emergency Back-Up: Pairing your retirement plan with a dedicated business safety net ensures you don’t dipping into savings during challenging periods and incurring penalties.
Plan for the Future of Your Oklahoma City, OK Business
A thoughtful retirement strategy also helps you prepare for what’s next with your Oklahoma City, OK business:
- Selling Your Business: For those considering a sale, accounts such as SEP IRAs or Solo 401(k)s remain yours and don’t transfer with the business. These savings ensure the reliable income you’ll need during retirement. It’s important to note that while the sale of a business usually creates a capital gain, retirement plan contributions are subject to yearly maximums (e.g., up to $7,000 for IRAs or up to $70,000 for Solo 401(k)s, including catch-up contributions, depending on plan details).
- Minimizing Taxes: Strategically planning your contributions helps lower the taxes you might face when you pass on your business.
- Succession Planning: Whether you’re transferring ownership, your nest egg provide the funds you need through the transition. You may also work with a financial advisor who specializes in succession planning and retirement accounts to reduce taxes on the sale.
With the proper savings strategy, you gain control over your financial future, lower your tax bill, and build a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Oklahoma City, OK Now?
There’s no denying that time is one of the most valuable assets in retirement planning. Getting a head start not only helps you grow a more substantial retirement fund but also reduces the pressure of catching up later in life. The following are reasons why it pays to take action now:
The Cost of Waiting
Waiting to start your retirement fund can have a substantial impact on the amount you’ll have when you reach retirement age. The primary reason is compound interest—the financial principle where your investments grow, and those returns, in turn, generate even more returns. The more time your money has to grow, the more significant the impact of compounding.
Example: Taylor and Alex are both self-employed professionals. They each aim 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, assuming 7% annual return:
- Alex contributes $180,000 and achieves a total of $691,184.39*.
- Taylor invests $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Even modest contributions made consistently may result in impressive growth. Here’s a simple scenario showing the power of compounding:
- Starting at age 25: If you invest $200 per month in a retirement plan with an average annual return of 7%, you’ll accumulate $497,303.29* by age 65.
- Starting at age 35: Saving the same $200 per month would result in only $235,412.97* by age 65—a difference of over $260,000, simply due to a 10-year delay.
Saving early, the less effort required each year to meet your retirement goals.
*The figures provided in this example are based on 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 meant to provide general guidance and are not a promise of future results. Actual results may vary depending on variables including market conditions, fees, and personal factors. We recommend consulting a financial advisor for custom recommendations.
Take Control of Your Financial Future
As a self-employed person in Oklahoma City, OK, it might seem easier to focus more on reinvesting in your business instead of saving for retirement. That said, beginning a plan now enables you to:
- Leverage tax-deferred growth or withdrawals without taxes in the future.
- Take advantage of contribution flexibility that change with your income.
- Create a long-term safety measure that offers peace of mind, no matter how your business changes.
The sooner you start, the less you’ll be required to worry about catching up later in life. Building your retirement savings today means taking control of your financial future and giving yourself the opportunity to focus on your dreams—both for your golden years and your Oklahoma City, OK business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options designed for those working for themselves in Oklahoma City, OK, each providing its own benefits and trade-offs. A financial advisor is available to help you learn about the pros and cons of each plan and identify the one most suitable for your circumstances. In most cases, your self-employed retirement plan options in Oklahoma City, OK are:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent long-term savings plans that offer key tax perks. In a traditional IRA, contributions are typically tax-deductible, and investment earnings grow tax-deferred, but retirement distributions are taxable. In contrast, Roth IRA contributions from post-tax earnings, but eligible distributions during retirement, including earnings, are not taxed. In both accounts, withdrawals don’t incur penalties provided you are at least 59½.
Eligibility: Unlike plans linked to your job, IRAs, including traditional and Roth options are available to anyone with taxable earnings.
Contribution Limits: For 2025, annual contribution limits for IRAs are capped at $7,000, or $8,000 if you qualify for catch-up contributions.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: SEP IRAs is a retirement plan that allows 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 independent business owner, you (the employee) are limited to contributions from the employer role 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. SEP IRAs is a good option for entrepreneurs facing fluctuating revenue streams. Compared to other retirement options, SEP IRAs are free of expensive setup or ongoing fees.
SEPs function like standard IRAs, where you contribute pre-tax dollars and money withdrawn is subject to income tax.
Eligibility: Employers of any type, including self-employed individuals can set up 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
If you’re self-employed, the allowable contribution is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, also called an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan meant for companies that have no employees or when the sole employee is your spouse. These plans operate much like employer-sponsored 401(k) plans, and let you make contributions as both the employer and the employee with pre-tax money. This offers more savings than SEPs or IRAs; however, the increased savings potential often come with more constrained investment avenues. 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: 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 can make two types of contributions:
- Employee contributions of up to 100% of your earned income from self-employment, subject to the annual contribution limit. In 2025, those limits are $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) 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.
The total contribution cannot exceed $70,000, or $77,500 for individuals aged 50+ (for 2025), $81,250 for individuals turning 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan represents a type of retirement plan that guarantees a pre-established payout to entrepreneurs upon retirement. Unlike defined contribution plans mentioned above, investment returns don’t affect the payout, but lets individuals clearly understand the precise amount they'll receive in retirement. This option is best suited for high-earning professionals who are focused on saving a significant sum for retirement and can commit to making sizeable contributions. Contributions grow tax-free until withdrawal, and withdrawals are taxed as income upon retirement.
Eligibility: Self-employed professionals operating a solo business or with a small staff of under five are eligible to open 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 include:
- Business owners or partners who aim to deposit more than $70,000 (or $77,500 for individuals 50 and older)
- Organizations that already put in 3-4% but are open to increasing contributions
- Businesses with proven consistent profit patterns
- Entrepreneurs over age 40 who desire to "catch up" or accelerate the retirement savings
Contribution Limits: The contribution limit is calculated by an actuary using your earnings, age, and retirement objectives. Allowable contributions are updated yearly.
The Importance of a Financial Advisor in Oklahoma City, OK for Your Self-Employed Retirement Plan
A financial advisor in Oklahoma City, OK focused on self-employed retirement strategies serves as an essential partner for entrepreneurs. They bring the skills needed to guide you through the challenges of retirement planning and develop a tailored strategy that aligns with your goals. Your advisor in Oklahoma City, OK will assess where you stand financially, identify your risk preferences, and guide you in making informed decisions about saving and investing for retirement. A key part of what we do for you involves:
- Guide you in choosing a plan that suits your unique requirements
- Customize the plan to your specific situation even further
- Formalize a plan in writing as required by IRS rules
- Arrange a trust plan for assets
- Help you understand the plan's terms
- Monitor and adjust your plan as needed
- Deliver continuous support and financial insights as you continue on the road to retirement
- Increase your retirement income by maximizing your social security benefits
Self-Employed Retirement Plans in Oklahoma City, OK: Correct Capital's Process
Entrepreneurs in Oklahoma City, OK who don’t have the time or expertise to handle their self-employed retirement plan themselves may end up overwhelmed when faced with their available plans. At Correct Capital, our Oklahoma City, OK financial advisors manage the lion's share of your savings plan setup for you, to help make meeting your future savings targets as hassle-free 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: A quick 20-minute call is all it takes, a member of our advisor team will assess if our services align for you and your business. This brief introduction allows us to learn about your needs with no obligation or extensive time commitment on your part.
- Gather Information: If we both decide to move forward, we'll ask for information, including whether you have employees, your present financial standing, and your retirement goals. This helps us create a custom plan that aligns with your goals.
- Review Your Plan: Once we've developed 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: When we finalize 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 review your strategy to ensure it stays suited to your needs.
Our Oklahoma City, OK financial advisors and retirement plan consultants act as fiduciary advisors, meaning they are legally and ethically bound to act in your best interest.
Other financial advisory services we offer in Oklahoma City, OK 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 Oklahoma City, OK
You don't see your business as "just a business", and your Oklahoma City, OK financial advisors need to offer more than basic financial recommendations. Correct Capital takes pride in, we take the time to get to know our clients and their businesses to deliver tailored self-employed retirement plans. All our clients in Oklahoma City, OK benefit from our I.O.U. promise: everything we recommend will be independent, objective, and unbiased. To begin on your self-employment retirement plan, reach out to Correct Capital at 877-930-401k or contact us online.
