Self-employed retirement plans Shreveport, LA. The independence of owning your own business in Shreveport, LA is one of the greatest advantages of being self-employed. Even so, this independence often comes with a lack of security, especially in terms of building your retirement fund, as you don't have access to retirement programs through an employer. 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 more comfortable retirement, partnering with a financial advisor in Shreveport, LA to establish your self-employed retirement plan delivers significant tax advantages that help your business to grow and succeed.
Few Shreveport, LA investment consulting and retirement planning firms understand the needs of small business owners 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 understand that your goals for your business and retirement go far beyond basic numbers, and we strive to provide personalized solutions to meet your unique goals. Keep reading to learn more about your self-employed retirement plan options in Shreveport, LA, or give us a call at Correct Capital at 877-930-401k or contact us online to speak with a self-employed financial advisor in Shreveport, LA today.
Why Shreveport, LA Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals are essential for preparing you for the future, they also provide immediate benefits today. From flexible contributions to substantial tax savings, partnering with a financial advisor in Shreveport, LA enables you to customize your retirement plan to suit your unique financial situation.
Flexibility That Fits Your Income
For those with fluctuating income annually, a plan like a SEP IRA or Solo 401(k) provides the flexibility to adjust how much you save:
- Customizable Contributions: Contribute more during successful years and scale back when revenues are down, so that your plan works with your cash flow.
- Roth Options: Opting for a Roth Solo 401(k) lets you handle taxes upfront, so you can withdraw without tax penalties in the future—a smart decision if you believe 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 SEP IRA reduce what you owe in taxes, so you can keep more of your earnings.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to accumulate.
- State-Specific Incentives: In some states, you may be eligible for extra credits as a business owner. These local incentives can make these plans even more advantageous.
- 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 they contribute a retirement plan, further reducing 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 linked to the way you invest:
- Diversified Portfolios: Allocating your investments across a mix of stocks, bonds, and other assets is a smart way to minimize exposure to risk while continuing to build your savings.
- Emergency Back-Up: Supplementing your retirement savings with a dedicated business safety net helps you avoid using your retirement funds during financial hardships and incurring penalties.
Plan for the Future of Your Shreveport, LA Business
A thoughtful retirement strategy enables you to prepare for what’s next with your Shreveport, LA business:
- Selling Your Business: When selling your business, plans like SEP IRAs or Solo 401(k)s remain yours and won’t be included in the sale. These accounts offer the financial stability you’ll need during retirement. Keep in mind that while the sale of a business usually creates 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, with catch-up contributions, according to plan rules).
- Minimizing Taxes: Strategically planning your contributions minimizes the taxes you might face when you transfer your business.
- Succession Planning: For those winding down or handing over their business, your nest egg offer financial security during the change. You might want to seek advice from a financial advisor with expertise in succession and retirement planning 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 Shreveport, LA Now?
Time remains one of the most crucial resources for building your retirement fund. Getting a head start not only helps you grow a larger nest egg but also minimizes the pressure of playing catch-up as you get older. The following are reasons why it is beneficial to start now:
The Cost of Waiting
Delaying your retirement savings could lead to a major impact on the savings you’ll have when you retire. The primary reason is compound interest—the concept where your investments earn returns, and those returns, in turn, earn even more returns. The greater time span your money has to grow, the greater the impact of this growth.
Example: Two individuals, Alex and Taylor are both self-employed individuals. 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 saves $7,500 annually to bridge the gap.
By age 65, with an assumption of 7% annual return:
- Alex invests $180,000 and accumulates $691,184.39*.
- Taylor contributes $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Even modest contributions contributed over time can lead to substantial growth. Here’s a simple scenario showing the effect of compound interest:
- Starting at age 25: Putting aside $200 per month in a retirement plan with an projected return 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 shortfall of over $260,000, all because of a 10-year delay.
Saving early, the less effort required each year to meet your retirement goals.
*These calculations represent estimates derived from NerdWallet’s Compound Interest Calculator, based on a 7% annual return. The contributions were calculated by multiplying the annual deposit amount by the total number of years contributions were made. This information is intended as illustrative examples and are not a promise of future results. Your individual results may differ due to elements like market conditions, fees, and personal factors. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
As a self-employed person in Shreveport, LA, it can be tempting to prioritize reinvesting in your business rather than saving for retirement. Even so, initiating a plan now allows you to:
- Leverage growth that is tax-deferred or withdrawals without taxes later on.
- Take advantage of adjustable savings that change with your cash flow.
- Build a financial cushion that offers peace of mind, no matter how your business evolves.
Starting early, the less you’ll need to worry about playing catch-up later in life. Saving for retirement now means taking control of your financial future and giving yourself the freedom to focus on your dreams—both for your future retirement and your Shreveport, LA business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options designed for self-employed individuals in Shreveport, LA, each offering its own benefits and trade-offs. A financial advisor can help you understand the advantages and disadvantages of each plan and identify the one ideal for your needs. Typically, your self-employed retirement plan options in Shreveport, LA include:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are financial tools for retirement that provide specific tax advantages. In a standard IRA, the money you contribute is often tax-deductible, and returns grow free of current taxes, but retirement distributions are taxed as income. In contrast, Roth IRA contributions from post-tax earnings, but eligible distributions during retirement, including earnings, are exempt from taxes. In both cases, withdrawals come without penalties if you are at least 59½.
Eligibility: While many retirement plans, such as 401(k)s, are tied to employment, IRAs, including traditional and Roth options are available to anyone 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: The Simplified Employee Pension IRA offers a way to save for retirement that enables self-employed individuals to contribute a percentage of their net earnings. Contributions must come from an employer, so, as a self-employed individual, you (the employee) are limited to contributions from the employer role beyond 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 works well for companies with cycles of high revenue and low revenue. Compared to other retirement options, SEP IRAs are free of costly startup or administrative fees.
SEPs operate like conventional IRAs, where you contribute pre-tax dollars and retirement distributions are taxable.
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
For self-employed individuals, the amount eligible to be contributed 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 retirement savings plan designed for companies that have no employees or if the only employee is your spouse. This type of plan are similar to employer-sponsored 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 additional opportunities 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 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:
- Employee contributions of up to 100% of your earned income from self-employment, up to the annual contribution limit. The contribution limits for 2025 include $23,500, or $31,000 if you're over 50, or $34,750 for those who turn 60-63 in 2025.
- Employer profit-sharing contributions (as an employer) are limited to 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.
Total contributions are capped at $70,000, or $77,500 for individuals aged 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 set amount to self-employed individuals upon retirement. Unlike defined contribution plans mentioned above, a defined benefit plan doesn't fluctuate based on investment returns, but lets individuals clearly understand the precise amount they'll get in retirement. This option is recommended for higher-income self-employed individuals who are focused on saving a significant sum for retirement and can commit to making substantial contributions. Contributions grow tax-free until withdrawal, and withdrawals are taxed as income during retirement.
Eligibility: Self-employed professionals operating a solo business or with less than five employees can open an individual defined benefit plan, but it's typically recommended for individuals aged 50+ who generate a minimum of $250,000 yearly. Typically, good candidates for defined benefit plans tend to be:
- Business owners or partners who want to invest more than $70,000 (or $77,500 if over age 50)
- Organizations that already put in 3-4% and are willing to do more
- Companies showing consistent profit patterns
- Entrepreneurs over age 40 who desire to "catch up" or increase their retirement contributions rapidly
Contribution Limits: The contribution limit must be determined by an actuary determined by your earnings, age, and retirement objectives. Limits on contributions are updated yearly.
The Importance of a Financial Advisor in Shreveport, LA for Your Self-Employed Retirement Plan
Working with a financial advisor in Shreveport, LA experienced with retirement plans for the self-employed can be an essential partner for entrepreneurs. They have the expertise to help guide you through the challenges of retirement planning and develop a tailored strategy that matches your objectives. A financial advisor in Shreveport, LA will assess where you stand financially, understand your risk tolerance, and help you in making informed decisions about saving and investing for retirement. A key part of what we do for you features:
- Guide you in choosing a plan that suits your unique requirements
- Further adapt the plan to fit you personally even further
- Adopt a written plan that complies with IRS regulations
- Set up an asset trust plan
- Make sure you understand the plan's terms
- Review and modify your plan as needed
- Offer continued financial education and guidance as you continue on the road to retirement
- Boost your retirement earnings by optimizing your social security benefits
Self-Employed Retirement Plans in Shreveport, LA: Correct Capital's Process
Self-employed individuals in Shreveport, LA who lack the time, interest, or knowledge to oversee their own retirement planning on their own may end up overwhelmed as they look at their options. Through our team at Correct Capital, our Shreveport, LA financial advisors manage the majority of your savings plan setup for you, to help make meeting your retirement goals as hassle-free 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: A quick 20-minute call is all it takes, a member of our advisor team can determine if we're a good fit for you and your business. This brief introduction allows us to understand what you're looking for with no pressure or major time investment on your part.
- Gather Information: Should we agree to proceed, we'll request information, including how many employees you have (if any), your existing financial picture, and your retirement goals. This helps us create a personalized strategy that aligns with your goals.
- Review Your Plan: Once we've developed a plan using the information you provide, we'll sit down with you and discuss your plan step by step to make sure it's clear and understand how it best correlates to your needs.
- Implementation and Monitoring: When we finalize on your plan, we'll set everything up so you can initiate your savings journey. As time goes on, we'll meet with you and track your progress to keep it tailored to your evolving circumstances.
Our Shreveport, LA financial advisors and retirement plan consultants serve as fiduciary advisors, who are obligated to they are legally and ethically bound to prioritize your needs above all else.
Other financial advisory services we offer in Shreveport, LA include:
- Investment Management
- 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 Shreveport, LA
You don't see your business as "just a business", and your Shreveport, LA financial advisors should provide more than basic financial recommendations. With Correct Capital, we take the time to get to know our clients and their businesses to provide tailored self-employed retirement plans. All our clients in Shreveport, LA benefit from our I.O.U. promise: all guidance we provide will be independent, objective, and unbiased. To get started on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.
