Self-employed retirement plans Oxnard, CA. The independence of being your own boss in Oxnard, CA is one of the best aspects of having a self-directed career. That said, this flexibility sometimes brings with a lack of security, notably when it comes to retirement savings, as you don't have the benefit 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 achieving a more secure retirement, working with a financial advisor in Oxnard, CA to create your self-employed retirement plan offers significant tax advantages that help you to move your business forward.
Few Oxnard, CA financial advisory and retirement planning firms understand the needs of self-employed individuals better than Correct Capital. Our founder's father was a small business owner himself (read more of our story here), and our firm take pride in assisting business owners in their retirement planning needs. We recognize that your business and retirement aspirations aren’t limited to basic numbers, and we work tirelessly to offer tailored solutions to meet your unique goals. Continue exploring to find out about your self-employed retirement plan options in Oxnard, CA, or call Correct Capital at 877-930-401k or contact us online to speak with a small business financial advisor in Oxnard, CA today.
Schedule a Meeting With an Advisor Today
Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
Schedule a 15-Minute Introductory Call
Why Oxnard, CA 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. From flexible contributions to significant tax savings, partnering with a financial advisor in Oxnard, CA enables you to design 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) offers the flexibility to adjust how much you save:
- Customizable Contributions: Set aside more during successful years and scale back when revenues are down, so your plan aligns with your current income.
- Roth Options: Choosing a Roth Solo 401(k) lets you handle taxes upfront, allowing you to withdraw tax-free later—an advantageous choice if you believe your tax rate to be higher in the future.
Save Money on Taxes
Retirement plans for self-employed individuals provide valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA shrink your tax liability, allowing you to keep more of your earnings.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, giving your money more time to compound.
- State-Specific Incentives: Depending on where you live, you could qualify for additional tax breaks as a self-employed individual. These state-level incentives can make these plans even more valuable.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can take advantage of a 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
Planning for a safe retirement isn’t only about 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 is a smart way to mitigate financial risk while continuing to build your nest egg.
- Emergency Back-Up: Supplementing your retirement savings with a business emergency fund prevents you from tapping into your nest egg during challenging periods and incurring penalties.
Plan for the Future of Your Oxnard, CA Business
Preparing for retirement can assist you prepare for what’s next with your Oxnard, CA business:
- Selling Your Business: When selling your business, accounts such as SEP IRAs or Solo 401(k)s stay in your name and are not part of the sale. These plans offer the steady income you’ll need later on. Remember that while the sale of a business usually creates a capital gain, contributions to retirement accounts are restricted by contribution limits (e.g., as much as $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, factoring in catch-up contributions, based on plan compensation).
- Minimizing Taxes: Using retirement contributions wisely can reduce the taxes you’ll owe when you sell your business.
- Succession Planning: Whether you’re transferring ownership, your retirement savings provide the funds you need as you make this shift. You may also work with a financial advisor with expertise in succession and retirement planning to minimize tax burdens associated with the transaction.
With the best-fit retirement strategy, you manage your financial future, cut down your tax obligations, and build a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Oxnard, CA Now?
There’s no denying that time is one of the most valuable factors in retirement planning. Beginning sooner rather than later not only allows you to build a bigger financial cushion but also lowers the pressure of catching up later in life. This is why it makes sense to begin today:
The Cost of Waiting
Waiting to start your retirement fund may cause a significant impact on the total you’ll have when you retire. The main reason is compound interest—the concept where your investments grow, and those returns, in turn, earn even more returns. The greater time span your money has to grow, the greater the benefit of this growth.
Example: Alex and Taylor are both self-employed professionals. Both of them want 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 puts away $7,500 annually to catch up.
By age 65, using a projected 7% annual return:
- Alex invests $180,000 and achieves a total of $691,184.39*.
- Taylor invests $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Small, consistent savings contributed over time can lead to impressive growth. Consider this example showing the power of compounding:
- Starting at age 25: By investing $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 leaves you with only $235,412.97* by age 65—a gap of over $260,000, all because of a 10-year delay.
Starting sooner, the lower your annual savings needs each year to achieve 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. These calculations involved multiplying yearly deposits by the years contributed. The scenarios provided are intended as illustrative examples and do not guarantee future performance. Your individual results may differ based on elements like market conditions, fees, and your unique situation. Be sure to speak with a financial advisor for custom recommendations.
Take Control of Your Financial Future
As a self-employed person in Oxnard, CA, it can be tempting to prioritize reinvesting in your business instead of saving for retirement. Even so, starting a plan now allows you to:
- Leverage growth that is tax-deferred or withdrawals without taxes down the road.
- Enjoy contribution flexibility that change with your cash flow.
- Create a safety net that offers peace of mind, no matter how your business evolves.
Starting early, the less you’ll have to worry about playing catch-up later in life. Building your retirement savings today means taking control of your financial future and creating for yourself the opportunity to turn your attention to your dreams—both for your future retirement and your Oxnard, CA business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options designed for those working for themselves in Oxnard, CA, each providing its own benefits and trade-offs. A financial advisor is available to help you evaluate the pros and cons of each option and choose the one best suited for your needs. Generally speaking, your self-employed retirement plan options in Oxnard, CA include:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent retirement savings vehicles that offer key tax perks. In a conventional 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 are made with after-tax income, but qualified withdrawals in 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, both traditional and Roth IRAs are accessible for individuals with a source of income.
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: The Simplified Employee Pension IRA offers a way to save for retirement that enables self-employed individuals to set aside a portion of their self-employment income. Contributions can only be made by an employer, so, as a sole proprietor, you (the employee) are limited to contributions from the employer role above the 25% you (the employer) have designated. If you have employees, you must contribute the same amount for them as you do for yourself. You may choose to contribute a set monetary value or a percentage of wages to employee accounts. SEP IRAs is a good option for businesses that experience cycles of high revenue and low revenue. Compared to other retirement options, SEP IRAs don’t have costly startup or administrative fees.
SEPs function like conventional IRAs, where contributions are made with pre-tax money and withdrawals are taxed as income.
Eligibility: Both employers and 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
As a self-employed person, the contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: The Solo 401(k), sometimes referred to 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 are similar to traditional employer-managed 401(k) plans, and enable contributions as both an employer and an employee with pre-tax money. This offers more savings compared to SEPs or IRAs; however, the additional opportunities can be balanced by more limited investment options. With this type of plan, 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: For self-employed individuals with a solo 401(k) plan, you are allowed to make two types of contributions:
- Employee contributions of up to 100% of your self-employment income, up to the annual contribution limit. The contribution limits for 2025 include $23,500, or $31,000 for those aged 50 and above, or $34,750 for individuals aged 60-63 in 2025.
- Employer profit-sharing contributions (as an employer) cannot exceed 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.
The total contribution cannot exceed $70,000, or $77,500 for those aged 50 and older (for 2025), $81,250 if you attain age 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan offers a structured retirement solution that delivers a pre-established payout to self-employed individuals upon retirement. In contrast to the plans discussed earlier, investment returns don’t affect the payout, but enables participants to determine exactly how much they'll get in retirement. This option is ideal for wealthier self-employed individuals who aim to accumulate a large amount for retirement and are prepared to contribute larger deposits. Contributions are tax deferred, and withdrawals are taxable as income upon retirement.
Eligibility: Entrepreneurs running an owner-only business or with a small staff of under five may establish an individual defined benefit plan, but it's generally suggested for individuals aged 50+ who earn at least $250,000 a year. Typically, good candidates for defined benefit plans tend to be:
- Entrepreneurs who desire to contribute more than $70,000 (or $77,500 for those aged 50+)
- Companies already contributing 3-4% but are open to increasing contributions
- Companies showing consistent profit patterns
- Business leaders over age 40 who aim to quickly build retirement savings or increase their retirement contributions rapidly
Contribution Limits: The cap on contributions must be determined by an actuary determined by your income, age, and retirement goals. Allowable contributions are updated yearly.
The Importance of a Financial Advisor in Oxnard, CA for Your Self-Employed Retirement Plan
A financial advisor in Oxnard, CA focused on self-employed retirement strategies is an important asset for self-employed individuals. They have the expertise to help guide you through the challenges of retirement planning and design a personalized approach that aligns with your goals. Your advisor in Oxnard, CA will assess where you stand financially, identify your risk preferences, and help 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 aligns with your objectives and circumstances
- Further adapt the plan to your needs even further
- Create a written plan in accordance with IRS guidelines
- Set up an asset trust plan
- Help you understand the plan's terms
- Review and modify your plan to keep it aligned with your goals
- Offer continued financial education and guidance as you continue on the road to retirement
- Maximize what you receive in retirement by optimizing your social security benefits
Self-Employed Retirement Plans in Oxnard, CA: Correct Capital's Process
Oxnard, CA business owners who don’t have the time or expertise to manage their self-employed retirement plan themselves often feel overwhelmed when faced with their options. At Correct Capital, our Oxnard, CA financial advisors handle the bulk of your retirement strategy for you, working to make meeting your financial objectives 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 will assess if we're suited to your needs for you and your business. This initial call allows us to learn about your needs with no pressure or significant effort on your part.
- Gather Information: Should we agree to proceed, we'll ask for information, including your employee count, your present financial standing, and your future objectives. This enables us to craft a custom plan designed just for you.
- Review Your Plan: After we put together a plan based on the information you provide, we'll schedule a meeting and review your plan thoroughly to help you fully grasp it and show how it aligns with your goals.
- Implementation and Monitoring: When we finalize on your plan, we'll put everything in place so you can initiate your savings journey. Throughout our relationship, we'll have regular meetings and track your progress to ensure it stays suited to your needs.
Our Oxnard, CA financial advisors and retirement plan consultants are fiduciary advisors, who are obligated to they are committed by law and ethics to do what's in your best interest.
Other financial advisory services we offer in Oxnard, CA 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 Oxnard, CA
You don't see your business as "just a business", and your Oxnard, CA financial advisors need to offer more than simply sound financial advice. At Correct Capital, we make it a priority to understand our clients and their businesses to create personalized self-employed retirement plans. We offer all our Oxnard, CA clients our I.O.U. promise: all guidance we provide 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.
