Self-employed retirement plans Orlando, FL. The flexibility of owning your own business in Orlando, FL is one of the greatest advantages of working for yourself. Even so, this flexibility sometimes brings with certain challenges, notably when it comes to retirement savings, since you don't have the option of a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, although many should consider looking into other possibilities. In addition to having a more comfortable retirement, seeking advice from a financial advisor in Orlando, FL to set up your self-employed retirement plan can provide significant tax advantages that enable both you and your business to thrive.
Few Orlando, FL wealth management and retirement planning firms truly grasp the challenges faced by self-employed individuals 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 are deeply experienced in helping businesses with their retirement planning needs. We understand that your professional and personal aspirations go far beyond simple financial figures, and we work tirelessly to offer customized solutions aligned with your vision. Continue exploring to find out about your self-employed retirement plan options in Orlando, FL, or call Correct Capital at 877-930-401k or contact us online to consult with a small business financial advisor in Orlando, FL today.
Why Orlando, FL Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also provide tangible benefits today. Offering flexibility in contributions to considerable tax savings, consulting a financial advisor in Orlando, FL allows you to create your retirement plan to align with your specific needs.
Flexibility That Fits Your Income
For those with fluctuating income over time, a plan like a SEP IRA or Solo 401(k) gives you the flexibility to tailor how much you save:
- Customizable Contributions: Set aside more during successful years and scale back when your earnings dip, so that your plan aligns with your cash flow.
- Roth Options: A Roth Solo 401(k) lets you pay taxes on contributions now, allowing you to withdraw tax-free later—a smart decision if you anticipate your tax rate will increase in the future.
Save Money on Taxes
Self-employed retirement plans offer significant tax benefits:
- Tax-Deductible Contributions: Contributions to a Solo 401(k) lower your taxable income, helping you keep more of your earnings.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, providing your money more time to accumulate.
- State-Specific Incentives: Based on your location, you could qualify for extra deductions as a self-employed individual. These regional incentives make these plans even more beneficial.
- Retirement Savings Contributions Credit (Saver’s Credit): Eligible individuals can apply for a credit of up to 50% of the first $2,000 they contribute a retirement plan, cutting down your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement requires more than how much you save—it’s also linked to the way you invest:
- Diversified Portfolios: Allocating your investments across varied stocks, bonds, and other assets is a smart way to mitigate financial risk while continuing to build your savings.
- Emergency Back-Up: Supplementing your retirement savings with a business emergency fund prevents you from dipping into savings during financial hardships and incurring penalties.
Plan for the Future of Your Orlando, FL Business
Preparing for retirement enables you to think through what’s next with your Orlando, FL business:
- Selling Your Business: When selling your business, accounts such as SEP IRAs or Solo 401(k)s remain yours and won’t be included in the sale. These accounts offer the steady income you’ll need during retirement. Remember that while selling your business results in a capital gain, deposits into these plans are subject to yearly maximums (e.g., as much as $7,000 for IRAs or as much as $70,000 for Solo 401(k)s, including catch-up contributions, depending on plan details).
- 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 financial security as you make this shift. You might want to seek advice from a financial advisor who specializes in succession planning and retirement accounts to reduce taxes on the sale.
With the right retirement plan, you can take control of your financial future, cut down your tax obligations, and establish a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Orlando, FL Now?
Time remains one of the most crucial factors for building your retirement fund. Getting a head start not only allows you to build a larger nest egg but also reduces the pressure of playing catch-up as you get older. Here’s why it is beneficial to start now:
The Cost of Waiting
Putting off saving for retirement may cause a major impact on the savings you’ll have when you stop working. The primary reason is compound interest—the powerful process where your investments generate earnings, and those returns, subsequently, generate even more returns. The more time your money has to grow, the greater the impact of compounding.
Example: Taylor and Alex are both self-employed individuals. They each aim to save $500,000 for retirement by age 65:
- Alex initiates savings of $5,000 annually at age 30.
- Taylor postpones starting contributions to age 40 but contributes $7,500 annually to catch up.
By age 65, using a projected 7% annual return:
- Alex puts in $180,000 and accumulates $691,184.39*.
- Taylor invests $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Small, consistent savings made consistently can lead to significant growth. Take a look at this scenario showing the impact of consistent growth:
- Starting at age 25: If you invest $200 per month in a retirement plan with an average annual 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 difference of over $260,000, all because of a 10-year delay.
Saving early, the lower your annual savings needs each year to meet your retirement goals.
*The numbers shown in this scenario are based on estimates calculated using NerdWallet’s Compound Interest Calculator, assuming a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. These examples are intended as illustrative examples and do not guarantee future performance. Outcomes may change based on variables including market conditions, fees, and your unique situation. Always consult a financial advisor for personalized advice.
Take Control of Your Financial Future
If you’re self-employed in Orlando, FL, it can be tempting to put more emphasis on reinvesting in your business instead of saving for retirement. However, initiating a plan now allows you to:
- Leverage tax-free future growth or penalty-free withdrawals in the future.
- Enjoy contribution flexibility that align with your income.
- Establish a financial cushion that offers peace of mind, no matter how your business evolves.
The sooner you start, the less you’ll have to worry about playing catch-up later in life. Taking steps toward your retirement goals today means taking control of your financial future and giving yourself the ability to turn your attention to your objectives—both for your future retirement and your Orlando, FL business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options available for entrepreneurs in Orlando, FL, each providing its own pros and cons. A financial advisor will guide you to evaluate the pros and cons of each option and choose the one best suited for your unique situation. Generally speaking, your self-employed retirement plan options in Orlando, FL include:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are long-term savings plans that include key tax perks. In a standard IRA, contributions are typically tax-deductible, and earnings grow without immediate taxation, but money taken out during retirement are taxed as income. In contrast, Roth IRA contributions using income already taxed, but eligible distributions during retirement, including earnings, are not taxed. In both cases, withdrawals don’t incur penalties as long as you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, traditional and Roth IRAs are accessible for individuals with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are capped at $7,000, or $8,000 for those aged 50+.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: SEP IRAs offers a way to save for retirement that allows self-employed individuals to save a percentage of their net business profits. Contributions can only be made by an employer, so, as a self-employed individual, you (the employee) cannot make additional contributions more than 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. You have the flexibility to contribute a flat-dollar amount or a percentage of wages to employee accounts. This type of plan is a good option for entrepreneurs facing periods of inconsistent earnings. In contrast to some alternatives, SEP IRAs are free of expensive setup or ongoing fees.
SEPs work like traditional IRAs, where you contribute pre-tax dollars and retirement distributions are taxable.
Eligibility: Both employers and 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: Solo 401(k)s, commonly known as an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan intended for companies that have no employees or when the sole employee is your spouse. These plans function similarly to standard 401(k) plans, and let you make contributions as both an employer and an employee with pre-tax money. This provides more savings compared to SEPs or IRAs; however, the extra savings options 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: This plan is exclusively for business owners and their spouses can set up 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 earned income from self-employment, up to the annual contribution limit. In 2025, those limits are $23,500, or $31,000 if you are 50 or older, or $34,750 if you attain age 60-63 in 2025.
- Employer profit-sharing contributions (as an employer) must not surpass 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 (as of 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan offers a structured retirement solution that guarantees a fixed, predetermined benefit to business owners upon retirement. In contrast to the plans discussed earlier, a defined benefit plan doesn't fluctuate based on investment returns, but lets individuals clearly understand what they'll receive in retirement. This plan is best suited for wealthier entrepreneurs who want to save a large amount for retirement and can commit to making larger deposits. Contributions are tax deferred, and withdrawals are taxed as income upon retirement.
Eligibility: Entrepreneurs operating a solo business or with less than five employees may establish an individual defined benefit plan, but it's generally advised for individuals aged 50+ who earn at least $250,000 a year. Typically, good candidates for defined benefit plans include:
- Entrepreneurs who desire to contribute more than $70,000 (or $77,500 for individuals 50 and older)
- Companies already contributing 3-4% with plans to contribute more
- Organizations showing consistent profit patterns
- Business leaders 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 earnings, age, and retirement objectives. Limits on contributions are updated yearly.
The Importance of a Financial Advisor in Orlando, FL for Your Self-Employed Retirement Plan
Partnering with an advisor in Orlando, FL 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 design a personalized approach that aligns with your goals. A financial advisor in Orlando, FL will evaluate your financial situation, understand your risk tolerance, and help you in selecting the best options about saving and investing for retirement. Part of what we do for you features:
- Help you choose a plan that best fits your needs and goals
- Further adapt the plan to your specific situation even further
- Create a written plan as required by IRS rules
- Set up an asset trust plan
- Help you understand the plan's terms
- Monitor and adjust your plan when necessary
- Deliver continuous support and financial insights to help you navigate your retirement journey
- Boost your retirement earnings by maximizing your social security benefits
Self-Employed Retirement Plans in Orlando, FL: Correct Capital's Process
Self-employed individuals in Orlando, FL who aren’t equipped with the time or understanding to handle their self-employed retirement plan independently often feel overwhelmed as they look at their choices. Through our team at Correct Capital, our Orlando, FL financial advisors handle the bulk of your savings plan setup for you, working to make meeting your financial objectives as straightforward as possible for you. We can help you get set 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 we're suited to your needs for you and your business. This initial call helps us learn about your needs with no pressure or significant effort on your part.
- Gather Information: Once we mutually decide to continue, we'll ask for information, including whether you have employees, your current financial situation, and your long-term savings targets. This allows us to put together a tailored approach designed just for you.
- Review Your Plan: Once we've developed a plan from the information you provide, we'll schedule a meeting and discuss your plan step by step to help you fully grasp it and show how it aligns with your goals.
- Implementation and Monitoring: Once we've agreed on your plan, we'll implement the necessary steps so you can start saving. As time goes on, we'll meet with you and track your progress to keep it tailored to your evolving circumstances.
Our Orlando, FL financial advisors and retirement plan consultants act as fiduciary advisors, which means they are committed by law and ethics to do what's in your best interest.
Other financial advisory services we offer in Orlando, FL 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 Orlando, FL
You don't see your business as "just a business", and your Orlando, FL financial advisors should provide more than simply sound financial advice. With Correct Capital, we focus on building a relationship with our clients and their businesses to deliver tailored self-employed retirement plans. To every client in Orlando, FL, we provide our I.O.U. promise: all of the advice you get from us 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.
