Self-employed retirement plans St. Louis, MO. The independence of running your own company in St. Louis, MO offers many benefits of having a self-directed career. That said, this freedom can come with potential drawbacks, especially when it comes to planning for retirement, since you don't have the option of employer-sponsored retirement plans. Only 13% of self-employed individuals have a workplace retirement plan, but many could benefit from exploring their options. In addition to enjoying a financially stable retirement, seeking advice from a financial advisor in St. Louis, MO to establish your self-employed retirement plan delivers significant tax advantages that allow you to move your business forward.
Few St. Louis, MO financial advisory and retirement planning firms understand the needs of entrepreneurs as well as Correct Capital. Our company’s founder grew up with a father who was a small business owner himself (learn more about our story here), and we have a rich history of assisting business owners in their retirement planning needs. We know that your goals for your business and retirement extend well past basic numbers, and we are dedicated to offer personalized solutions that reflect your objectives. Read on to discover about your self-employed retirement plan options in St. Louis, MO, or call Correct Capital at 877-930-401k or contact us online to talk to a self-employed financial advisor in St. Louis, MO today.

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Why St. Louis, MO Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals are essential for preparing you for the future, they also deliver immediate benefits today. Offering flexibility in contributions to significant tax savings, consulting a financial advisor in St. Louis, MO 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) provides the flexibility to modify how much you save:
- Customizable Contributions: Contribute more during high-income years and reduce savings when income is lower, so your plan aligns with your financial situation.
- Roth Options: Choosing a Roth Solo 401(k) lets you settle taxes at the time of contribution, enabling you to withdraw your savings tax-free down the road—a wise move if you expect your tax rate to be higher in the future.
Save Money on Taxes
Self-employed retirement plans offer powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA shrink your tax liability, helping you keep more of your earnings.
- Tax-Deferred Growth: You won't pay taxes on investment growth until you withdraw it, providing your money more time to accumulate.
- State-Specific Incentives: In some states, you could qualify for extra tax breaks as a sole proprietor. 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 they contribute a retirement plan, cutting down your tax bill even more.
Protect Your Savings With Smart Investments
Planning for a safe retirement goes beyond just how much you save—it’s also about how you invest:
- Diversified Portfolios: Spreading your investments across different stocks, bonds, and alternatives serves to minimize exposure to risk while helping to grow your retirement fund.
- Emergency Back-Up: Pairing your retirement plan with a financial buffer for your business prevents you from dipping into savings during challenging periods and risking extra costs.
Plan for the Future of Your St. Louis, MO Business
A thoughtful retirement strategy enables you to plan ahead for what’s next with your St. Louis, MO business:
- Selling Your Business: For those considering a sale, retirement accounts like SEP IRAs and Solo 401(k)s remain yours and won’t be included in the sale. These savings can provide the reliable income you’ll need in the future. Remember that while the sale of a business usually creates a capital gain, retirement plan contributions are subject to yearly maximums (e.g., up to $7,000 for IRAs or up to $70,000 for Solo 401(k)s, including catch-up contributions, depending on plan details).
- Minimizing Taxes: Using retirement contributions wisely helps lower the taxes you are required to pay when you pass on your business.
- Succession Planning: For those winding down or handing over their business, your nest egg offer a stable foundation during the change. You can also work with a financial advisor with expertise in succession and retirement planning to help with taxes associated with the transaction.
With the best-fit retirement strategy, you manage your financial future, cut down your tax obligations, and establish a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in St. Louis, MO Now?
Time remains one of the most valuable resources for building your retirement fund. Starting early not only allows you to build a more substantial retirement fund but also reduces the stress of saving aggressively in the future. Here’s why it makes sense to begin today:
The Cost of Waiting
Waiting to start your retirement fund may cause a major impact on the amount you’ll have when you retire. The primary reason is compound interest—the powerful process where your investments generate earnings, and those returns, then, accumulate even more returns. The longer your money has to grow, the more significant the impact of compounding.
Example: 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 postpones starting contributions to age 40 but contributes $7,500 annually to make up for lost time.
By age 65, using a projected 7% annual return:
- Alex contributes $180,000 and ends up with $691,184.39*.
- Taylor contributes $195,500 but only ends up with $474,367.78*.
How Early Contributions Grow
Even modest contributions made consistently may result in impressive growth. Here’s a simple scenario showing the effect of consistent growth:
- 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 gap of over $260,000, all because of a 10-year delay.
Saving early, the lower your annual savings needs each year to achieve your retirement goals.
*These calculations represent estimates derived from NerdWallet’s Compound Interest Calculator, based on a 7% annual return. These calculations involved multiplying yearly deposits by the years contributed. These examples are intended as illustrative examples and do not guarantee future performance. Outcomes may change due to elements like market conditions, fees, and your unique situation. We recommend consulting a financial advisor for custom recommendations.
Take Control of Your Financial Future
For self-employed individuals in St. Louis, MO, it might seem easier to prioritize reinvesting in your business instead of saving for retirement. However, initiating a plan now enables you to:
- Take advantage of tax-free future growth or tax-free withdrawals down the road.
- Enjoy flexible contributions that align with your earnings.
- Establish a safety net that ensures stability, no matter how your business develops.
Getting started now, the less you’ll need to worry about playing catch-up later in life. Building your retirement savings today means taking control of your financial future and allowing yourself the freedom to concentrate on your dreams—both for your future retirement and your St. Louis, MO business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options open for those working for themselves in St. Louis, MO, each with its own pros and cons. A financial advisor can help you learn about the benefits and drawbacks of each choice and identify the one most suitable for your circumstances. Typically, your self-employed retirement plan options in St. Louis, MO are:
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 traditional IRA, you can usually deduct your contributions from taxable income, and investment earnings grow tax-deferred, but retirement distributions are subject to income tax. In contrast, Roth IRA contributions from post-tax earnings, but eligible distributions during retirement, including earnings, are not taxed. In both accounts, withdrawals are penalty-free if you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, traditional and Roth IRAs are available to anyone with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 for those aged 50+.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: The Simplified Employee Pension IRA is a retirement plan that enables those who are self-employed to save a percentage of their net business profits. 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) 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. This type of plan is a good option for entrepreneurs facing fluctuating revenue streams. In contrast to some alternatives, SEP IRAs lack expensive setup or ongoing fees.
SEPs work like conventional IRAs, where you contribute pre-tax dollars and money withdrawn is subject to income tax.
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 contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, sometimes referred to as an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan meant for businesses without employees or when the sole employee is your spouse. Solo 401(k)s function similarly to employer-sponsored 401(k) plans, and enable contributions as both the employer and the employee with pre-tax money. This provides more savings compared to SEPs or IRAs; however, the extra savings options may be offset by more restricted investment choices. In a solo 401(k) plan, you can make either traditional or Roth deferrals, which offer the same tax benefits as their IRA contribution counterparts.
Eligibility: Only business owners and their spouses are eligible to open and contribute to a solo 401(k).
Contribution Limits: For self-employed individuals with a solo 401(k) plan, you have the ability to make two types of contributions:
- Employee contributions 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 for those aged 50 and above, or $34,750 for those who turn 60-63 in 2025.
- Profit-sharing contributions (as an employer) must not surpass 25% of your net self-employment income, which is defined as 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 if you're over age 50 (for 2025), $81,250 if you attain age 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan offers a structured retirement solution that provides a pre-established payout to entrepreneurs upon retirement. Unlike defined contribution plans mentioned above, investment returns don’t affect the payout, but allows self-employed individuals to know what they'll receive in retirement. This plan is best suited for higher-income self-employed individuals who want to save a significant sum for retirement and are willing to make sizeable contributions. Contributions are tax deferred, and withdrawals incur taxes as income upon retirement.
Eligibility: Entrepreneurs operating a solo business or with a small staff of under five are eligible to open an individual defined benefit plan, but it's typically advised for people above age 50 who earn at least $250,000 a year. Generally, good candidates for defined benefit plans are:
- Entrepreneurs who desire to contribute more than $70,000 (or $77,500 if over age 50)
- Businesses currently investing 3-4% and are willing to do more
- Organizations showing consistent profit patterns
- Business leaders over age 40 who wish to accelerate savings or accelerate the retirement savings
Contribution Limits: The cap on contributions must be determined by an actuary based on your income, age, and retirement goals. Contribution limits change annually.
The Importance of a Financial Advisor in St. Louis, MO for Your Self-Employed Retirement Plan
Working with a financial advisor in St. Louis, MO focused on self-employed retirement strategies can be an essential partner for those working for themselves. They offer the knowledge to assist navigate the complexities of retirement planning and design a tailored strategy that reflects your aspirations. An expert in your area will assess where you stand financially, determine how much risk you’re comfortable with, and guide you in making informed decisions about saving and investing for retirement. Part of what we do for you features:
- Assist in selecting a plan that best fits your needs and goals
- Customize the plan to fit you personally even further
- Adopt a written plan as required by IRS rules
- Organize a trust plan to manage your assets
- Help you understand the plan's terms
- Review and modify your plan when necessary
- Deliver continuous support and financial insights as you continue on the road to retirement
- Maximize what you receive in retirement by maximizing your social security benefits
Self-Employed Retirement Plans in St. Louis, MO: Correct Capital's Process
St. Louis, MO business owners who lack the time, interest, or knowledge to oversee their self-employed retirement plan on their own often feel overwhelmed when faced with their options. Through our team at Correct Capital, our St. Louis, MO financial advisors manage the lion's share of your savings plan setup for you, working to make meeting your retirement goals as easy as possible for you. We will guide you in creating 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 help understand if we're a good fit for you and your business. This initial call helps us get a sense of your goals with no pressure or extensive time commitment on your part.
- Gather Information: If we both decide to move forward, we'll gather information, including how many employees you have (if any), your existing financial picture, and your long-term savings targets. This enables us to craft 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 go over your plan thoroughly to make sure it's clear and explain its fit to your circumstances.
- Implementation and Monitoring: When we finalize on your plan, we'll put everything in place so you can begin contributing. As time goes on, we'll have regular meetings and track your progress to make sure it remains aligned with your goals.
Our St. Louis, MO financial advisors and retirement plan consultants act as fiduciary advisors, which means they are committed by law and ethics to act in your best interest.
Other financial advisory services we offer in St. Louis, MO include:
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor

Call Correct Capital for Your Self-Employed Retirement Plan in St. Louis, MO
To you, your business is more than "just a business", and your St. Louis, MO financial advisors must deliver more than just good financial guidance. With 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 St. Louis, MO clients our I.O.U. promise: all guidance we provide will be independent, objective, and unbiased. To take the first step on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.