Self-employed retirement plans Port St. Lucie, FL. The flexibility of running your own company in Port St. Lucie, FL is one of the greatest advantages of being self-employed. That said, this independence sometimes brings with a lack of security, especially regarding retirement savings, 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 understanding their retirement options. In addition to achieving a more comfortable retirement, working with a financial advisor in Port St. Lucie, FL to create your self-employed retirement plan can provide significant tax advantages that allow you to move your business forward.
Few Port St. Lucie, FL financial advisory and retirement planning firms are as attuned to the requirements 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 our firm are deeply experienced in helping businesses with their retirement planning needs. We understand that your business and retirement aspirations go far beyond simple financial figures, and we strive to provide tailored solutions aligned with your vision. Keep reading to learn more about your self-employed retirement plan options in Port St. Lucie, FL, or reach out to Correct Capital at 877-930-401k or contact us online to consult with a self-employed financial advisor in Port St. Lucie, FL today.
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Why Port St. Lucie, FL Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals not only prepare you for the future, they also provide real benefits today. With customizable contribution options to significant tax savings, consulting a financial advisor in Port St. Lucie, FL helps you customize 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) gives you the freedom to adjust how much you save:
- Customizable Contributions: Save extra during profitable years and cut back when your earnings dip, ensuring your plan works with your financial situation.
- Roth Options: Choosing a Roth Solo 401(k) lets you handle taxes upfront, enabling you to withdraw your savings tax-free down the road—an advantageous choice if you expect your tax rate to be higher in the future.
Save Money on Taxes
Retirement plans for self-employed individuals offer powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a Solo 401(k) reduce what you owe in taxes, so you can 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 grow.
- State-Specific Incentives: Depending on where you live, you could qualify for state-specific deductions as a self-employed individual. These local incentives make these plans even more beneficial.
- Retirement Savings Contributions Credit (Saver’s Credit): Those who meet the requirements 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
Planning for a safe retirement requires more than how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Allocating your investments across a mix of asset classes like stocks and bonds can help reduce risk while helping to grow your retirement fund.
- Emergency Back-Up: Combining your retirement strategy and a financial buffer for your business ensures you don’t using your retirement funds during challenging periods and incurring penalties.
Plan for the Future of Your Port St. Lucie, FL Business
Retirement planning can assist you think through what’s next with your Port St. Lucie, FL business:
- Selling Your Business: For those considering a sale, plans like SEP IRAs or Solo 401(k)s stay in your name and don’t transfer with the business. These accounts offer the reliable income you’ll need later on. Keep in mind that while selling a business often leads to a capital gain, contributions to retirement accounts are restricted by contribution limits (e.g., as much as $7,000 for IRAs or as much as $70,000 for Solo 401(k)s, factoring in catch-up contributions, depending on plan details).
- Minimizing Taxes: Strategically planning your contributions can reduce the taxes you might face when you pass on your business.
- Succession Planning: Whether you’re transferring ownership, your retirement accounts offer financial security through the transition. You might want to seek advice from a financial advisor with expertise in succession and retirement planning to reduce taxes associated with the transaction.
With the right retirement plan, you gain control over your financial future, reduce your tax burden, and build a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Port St. Lucie, FL Now?
There’s no denying that time is one of the most valuable resources in retirement planning. Getting a head start not only lets you accumulate a larger nest egg but also minimizes 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 can have a significant impact on the savings you’ll have when you reach retirement age. The primary reason is compound interest—the financial principle where your investments generate earnings, and those returns, in turn, accumulate even more returns. The more time your money has to grow, the greater the impact of this compounding process.
Example: Two individuals, Alex and Taylor 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 contributes $7,500 annually to catch up.
By age 65, assuming 7% annual return:
- Alex invests $180,000 and achieves a total of $691,184.39*.
- Taylor contributes $195,500 but only ends up with $474,367.78*.
How Early Contributions Grow
Small, consistent savings invested steadily may result in 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 projected return of 7%, you’ll accumulate $497,303.29* by age 65.
- Starting at age 35: Investing the same $200 per month would result in only $235,412.97* by age 65—a shortfall of over $260,000, all because of a 10-year delay.
Starting sooner, the less effort required each year to achieve your retirement goals.
*These calculations represent estimates generated with 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 for illustrative purposes only and are not a promise of future results. Actual results may vary based on factors such as market conditions, fees, and individual circumstances. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
As a self-employed person in Port St. Lucie, FL, it might seem easier to prioritize reinvesting in your business rather than saving for retirement. However, initiating a plan now gives you the chance to:
- Take advantage of growth that is tax-deferred or tax-free withdrawals down the road.
- Benefit from adjustable savings that adapt to your earnings.
- Create a financial cushion that ensures stability, no matter how your business develops.
The sooner you start, the less you’ll be required to worry about playing catch-up later in life. Building your retirement savings today means taking control of your financial future and giving yourself the opportunity to turn your attention to your goals—both for your future retirement and your Port St. Lucie, FL business.
Types of Self-Employed Retirement Plans
There are several retirement savings options available for self-employed individuals in Port St. Lucie, FL, each with its own pros and cons. A financial advisor will guide you to evaluate the pros and cons of each choice and determine the one best suited for your needs. In most cases, your self-employed retirement plan options in Port St. Lucie, FL are:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent long-term savings plans that include key tax perks. In a conventional IRA, you can usually deduct your contributions from taxable income, and investment earnings grow tax-deferred, but withdrawals in retirement are taxable. In contrast, Roth IRA contributions using income already taxed, but qualified withdrawals in retirement, including earnings, are exempt from taxes. In both types of accounts, withdrawals are penalty-free if you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, IRAs, including traditional and Roth options are open to those 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 allows those who are self-employed to save a percentage of their net business profits. Contributions must come from an employer, so, as a self-employed individual, you (the employee) cannot make additional contributions more than the 25% you (the employer) allocate. If you have employees, you must contribute the same amount for them as you do for yourself. It's your choice whether to contribute a flat-dollar amount or a percentage of wages to employee accounts. This type of plan is a good option for companies with fluctuating revenue streams. Unlike other plans, SEP IRAs are free of expensive setup or ongoing fees.
SEPs function like standard IRAs, where the contributions are tax-deferred and withdrawals are taxed as income.
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 the lesser 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: A Solo 401(k) plan, also called an Individual 401(k) or one-participant 401(k) plan, is a savings option for the self-employed designed for businesses with no employees or when the sole employee is your spouse. This type of plan function similarly to standard 401(k) plans, and let you make contributions as both the employer and the employee with pre-tax money. This offers more savings versus SEPs or IRAs; however, the additional opportunities may be offset by more constrained investment avenues. With this type of plan, you can make either traditional or Roth deferrals, which share the same tax benefits as their IRA contribution counterparts.
Eligibility: This plan is exclusively for 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 have the ability to make two types of contributions:
- Deferrals as an employee of up to 100% of your self-employment income, up to the annual contribution limit. For 2025, the limits will be $23,500, or $31,000 if you're over 50, or $34,750 for individuals aged 60-63 in 2025.
- Profit-sharing contributions (as an employer) are limited to 25% of your net earnings from self-employment, which is defined as net profit minus half of your self-employment tax and the employee contributions you made.
Total contributions are capped at $70,000, or $77,500 if you're over age 50 (as of 2025), $81,250 for individuals turning 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan offers a structured retirement solution that guarantees a pre-established payout to entrepreneurs upon retirement. In contrast to the plans discussed earlier, investment returns don’t affect the payout, but enables participants to determine the precise amount they'll have in retirement. This plan is ideal for wealthier professionals who aim to accumulate a significant sum for retirement and can commit to making sizeable contributions. Contributions are tax deferred, and withdrawals are taxed as income upon retirement.
Eligibility: Any self-employed individual running an owner-only business or employing fewer than five people 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. In most cases, 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+)
- Organizations that already put in 3-4% with plans to contribute more
- Organizations with proven consistent profit patterns
- Entrepreneurs over age 40 who aim to quickly build retirement savings or accelerate the retirement savings
Contribution Limits: The maximum allowable contribution is calculated by an actuary based on your income, age, and retirement goals. Limits on contributions are updated yearly.
The Importance of a Financial Advisor in Port St. Lucie, FL for Your Self-Employed Retirement Plan
Partnering with an advisor in Port St. Lucie, FL specialized in self-employed retirement plans serves as an important asset for self-employed individuals. They offer the knowledge to assist understand the intricacies of saving for retirement and develop a tailored strategy that matches your objectives. Your advisor in Port St. Lucie, FL will evaluate your financial situation, identify your risk preferences, and help you in making informed decisions about saving and investing for retirement. A key 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
- Create a written plan in accordance with IRS guidelines
- Set up an asset trust plan
- Make sure you understand the plan's terms
- Review and modify your plan when necessary
- Offer continued financial education and guidance to help you navigate your retirement journey
- Boost your retirement earnings by making the most of your social security
Self-Employed Retirement Plans in Port St. Lucie, FL: Correct Capital's Process
Entrepreneurs in Port St. Lucie, FL who lack the time, interest, or knowledge to handle their own retirement planning independently may end up overwhelmed when faced with their choices. At Correct Capital, our Port St. Lucie, FL financial advisors take on the majority of your savings plan setup for you, working to make meeting your financial objectives as straightforward as possible for you. We will guide you in creating your self-employed retirement plan in just four steps:
- Schedule a Call: It only takes 20 minutes, a member of our advisor team can determine if we're a good fit for you and your business. This brief introduction lets us learn about your needs with zero commitment or significant effort 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 long-term savings targets. This enables us to craft a tailored approach suited specifically for your needs.
- Review Your Plan: After we put together a plan based on the information you provide, we'll meet with you and discuss your plan in detail to make sure it's clear and understand how it best correlates to your needs.
- Implementation and Monitoring: After we agree on your plan, we'll set everything up so you can begin contributing. As time goes on, we'll have regular meetings and monitor your plan to ensure it stays suited to your needs.
Our Port St. Lucie, FL financial advisors and retirement plan consultants serve 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 Port St. Lucie, FL 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 Port St. Lucie, FL
To you, your business is more than "just a business", and your Port St. Lucie, FL financial advisors need to offer more than basic financial recommendations. Correct Capital takes pride in, we make it a priority to understand our clients and their businesses to deliver tailored self-employed retirement plans. All our clients in Port St. Lucie, FL benefit from our I.O.U. promise: everything we recommend 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.
