Self-employed retirement plans Savannah, GA. The freedom of running your own company in Savannah, GA is one of the greatest advantages of being self-employed. However, this freedom sometimes brings with a lack of security, notably in terms of building your retirement fund, as you don't have the benefit of employer-sponsored retirement plans. Only 13% of self-employed individuals have a workplace retirement plan, although many would be better off exploring their options. In addition to achieving a financially stable retirement, seeking advice from a financial advisor in Savannah, GA to set up your self-employed retirement plan delivers significant tax advantages that help you to move your business forward.
Few Savannah, GA wealth management and retirement planning firms truly grasp the challenges faced by small business owners better than 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 take pride in helping businesses with their retirement planning needs. We understand that your professional and personal aspirations extend well past just monetary concerns, and we are dedicated to provide customized solutions that reflect your objectives. Continue exploring to find out about your self-employed retirement plan options in Savannah, GA, or reach out to Correct Capital at 877-930-401k or contact us online to talk to a self-employed financial advisor in Savannah, GA today.
Why Savannah, GA Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also deliver real benefits today. From flexible contributions to considerable tax savings, consulting a financial advisor in Savannah, GA allows you to 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) gives you the freedom to adjust how much you save:
- Customizable Contributions: Set aside more during successful years and cut back when your earnings dip, ensuring your plan aligns with your financial situation.
- Roth Options: Opting for a Roth Solo 401(k) lets you handle taxes upfront, so you can withdraw your savings tax-free down the road—a smart decision if you anticipate your tax rate is likely to rise in the future.
Save Money on Taxes
Retirement plans for self-employed individuals provide powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA shrink your tax liability, allowing you to keep more of your income.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to grow.
- State-Specific Incentives: In some states, you might access state-specific deductions as a self-employed individual. These regional incentives make these plans even more valuable.
- 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 put into a retirement plan, cutting down your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement isn’t only about how much you save—it’s also about how you invest:
- Diversified Portfolios: Spreading your investments across a mix of stocks, bonds, and other assets is a smart way to minimize exposure to risk while still growing your savings.
- Emergency Back-Up: Supplementing your retirement savings with a financial buffer for your business prevents you from dipping into savings during challenging periods and incurring penalties.
Plan for the Future of Your Savannah, GA Business
Preparing for retirement enables you to prepare for what’s next with your Savannah, GA business:
- Selling Your Business: For those considering a sale, accounts such as SEP IRAs or Solo 401(k)s stay in your name and are not part of the sale. These plans ensure the financial stability you’ll need in the future. Keep in mind that while the sale of a business usually creates a capital gain, contributions to retirement accounts are subject to yearly maximums (e.g., up to $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, including catch-up contributions, according to plan rules).
- Minimizing Taxes: Strategically planning your contributions can reduce the taxes you might face when you transfer your business.
- Succession Planning: If you’re passing the business on, your retirement accounts provide a stable foundation as you make this shift. You might want to 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 can take control of your financial future, reduce your tax burden, and create a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Savannah, GA Now?
Time is one of the most important factors when it comes to saving for retirement. Beginning sooner rather than later not only allows you to build a more substantial retirement fund but also lowers the pressure of catching up later in life. Here’s why it is beneficial to start now:
The Cost of Waiting
Delaying your retirement savings could lead to a major impact on the amount you’ll have when you reach retirement age. 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 more significant the impact of this compounding process.
Example: Alex and Taylor are both entrepreneurs. Both of them want 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 accumulates $691,184.39*.
- Taylor puts in $195,500 but only ends up with $474,367.78*.
How Early Contributions Grow
Even modest contributions invested steadily may result in substantial growth. Take a look at this scenario showing the effect of consistent growth:
- Starting at age 25: If you invest $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 would result in only $235,412.97* by age 65—a shortfall of over $260,000, all because of a 10-year delay.
The earlier you begin, the lower your annual savings needs each year to reach your retirement goals.
*The numbers shown in this scenario are estimates generated with NerdWallet’s Compound Interest Calculator, based on a 7% annual return. Annual deposits were multiplied by the number of years to estimate total contributions. This information is for illustrative purposes only and are not a promise of future results. Actual results may vary based on variables including market conditions, fees, and your unique situation. Be sure to speak with a financial advisor for custom recommendations.
Take Control of Your Financial Future
If you’re self-employed in Savannah, GA, 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 gives you the chance to:
- Take advantage of tax-deferred growth or tax-free withdrawals down the road.
- Enjoy contribution flexibility that adapt to your earnings.
- Establish a long-term safety measure that ensures stability, no matter how your business evolves.
Starting early, the less you’ll be required to worry about catching up later in life. Taking steps toward your retirement goals today means gaining control over your financial future and creating for yourself the ability to concentrate on your dreams—both for your golden years and your Savannah, GA business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options available for self-employed individuals in Savannah, GA, each offering its own advantages and considerations. A financial advisor will guide you to learn about the benefits and drawbacks of each option and identify the one ideal for your unique situation. In most cases, your self-employed retirement plan options in Savannah, GA consist of:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent long-term savings plans that provide specific tax advantages. In a standard IRA, contributions are typically tax-deductible, and earnings grow without immediate taxation, but withdrawals in retirement are subject to income tax. In contrast, with Roth IRAs, you contribute from post-tax earnings, but eligible distributions during retirement, including earnings, are exempt from taxes. In both cases, withdrawals don’t incur penalties if you are at least 59½.
Eligibility: While many retirement plans, such as 401(k)s, are tied to employment, traditional and Roth IRAs are open to those with taxable earnings.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 if you're 50 or older.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA is a retirement plan that allows self-employed individuals to set aside a portion of their self-employment income. Contributions can only be made by an employer, so, as a independent business owner, you (the employee) cannot make additional contributions beyond 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 works well for companies with cycles of high revenue and low revenue. Compared to other retirement options, SEP IRAs lack expensive setup or ongoing fees.
SEPs work like traditional IRAs, where you contribute pre-tax dollars and withdrawals are taxed as income.
Eligibility: Both employers and self-employed individuals can establish a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA must not exceed:
- 25% of compensation, or
- $70,000 for 2025
If you’re self-employed, the amount eligible to be contributed is based on a special calculation.
Solo 401(k)
Plan Overview: The Solo 401(k), also called an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan designed for companies that have no employees or where the only employee is a spouse. These plans operate much like standard 401(k) plans, and allow you to contribute as both an employer and an employee with pre-tax money. This offers more savings versus SEPs or IRAs; however, the extra savings options can be balanced by more limited investment options. Using a solo 401(k), you can make either traditional or Roth deferrals, which share 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: 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 earned income from self-employment, capped at 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.
- Contributions as an employer (as an employer) cannot exceed 25% of your net earnings from self-employment, which is calculated as net profits less half of your self-employment tax and the employee contributions you made.
Your combined contributions must not surpass $70,000, or $77,500 if you're over age 50 (for 2025), $81,250 if you attain age 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan is a retirement option that delivers a fixed, predetermined benefit to entrepreneurs upon retirement. As opposed to defined contribution plans, investment returns don’t affect the payout, but allows self-employed individuals to know exactly how much they'll have in retirement. This strategy is ideal for higher-income entrepreneurs who want to save a significant sum for retirement and are willing to make sizeable contributions. Contributions grow tax-free until withdrawal, and withdrawals incur taxes as income in retirement.
Eligibility: Any self-employed individual operating a solo business or with less than five employees may establish an individual defined benefit plan, but it's generally recommended for those over 50 who generate a minimum of $250,000 yearly. Typically, good candidates for defined benefit plans include:
- Entrepreneurs who want to invest more than $70,000 (or $77,500 if over age 50)
- Companies already contributing 3-4% with plans to contribute more
- Businesses that have demonstrated consistent profit patterns
- Business leaders over age 40 who wish to accelerate 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. Contribution limits are updated yearly.
The Importance of a Financial Advisor in Savannah, GA for Your Self-Employed Retirement Plan
A financial advisor in Savannah, GA experienced with retirement plans for the self-employed can be an essential partner for those working for themselves. They offer the knowledge to assist navigate the complexities of retirement planning and craft a tailored strategy that aligns with your goals. A financial advisor in Savannah, GA will review your finances, determine how much risk you’re comfortable with, and assist you in selecting the best options about saving and investing for retirement. Part of what we do for you includes:
- Assist in selecting a plan that suits your unique requirements
- Customize the plan to your needs even further
- Create a written plan that complies with IRS regulations
- Arrange a trust plan for assets
- Ensure you comprehend the plan's terms
- Review and modify your plan when necessary
- Provide ongoing education and advice as you continue on the road to retirement
- Boost your retirement earnings by maximizing your social security benefits
Self-Employed Retirement Plans in Savannah, GA: Correct Capital's Process
Entrepreneurs in Savannah, GA who aren’t equipped with the time or understanding to oversee their self-employed retirement plan themselves may end up overwhelmed when faced with their options. With Correct Capital, our Savannah, GA financial advisors handle the bulk of your retirement strategy for you, and strive to ensure meeting your retirement goals as easy 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: 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 helps us learn about your needs with no pressure or significant effort on your part.
- Gather Information: Should we agree to proceed, we'll gather information, including your employee count, your present financial standing, and your future objectives. This enables us to craft a tailored approach that aligns with your goals.
- Review Your Plan: Once we've developed a plan using the information you provide, we'll schedule a meeting and go over your plan in detail to help you fully grasp it and show how it aligns with your goals.
- 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 meet with you and track your progress to keep it tailored to your evolving circumstances.
Our Savannah, GA 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 Savannah, GA 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 Savannah, GA
To you, your business is more than "just a business", and your Savannah, GA financial advisors should provide more than simply sound financial advice. Correct Capital takes pride in, we take the time to get to know our clients and their businesses to deliver customized self-employed retirement plans. We offer all our Savannah, GA clients 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.
