Self-employed retirement plans St. Petersburg, FL. The flexibility of owning your own business in St. Petersburg, FL offers many benefits of being self-employed. That said, this independence often comes with potential drawbacks, particularly regarding planning for retirement, because you don't have the option of a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, yet countless would be better off exploring their options. In addition to achieving a more secure retirement, seeking advice from a financial advisor in St. Petersburg, FL to set up your self-employed retirement plan offers significant tax advantages that enable both you and your business to thrive.
Few St. Petersburg, FL financial advisory and retirement planning firms understand the needs of small business owners quite like Correct Capital. The father of our founder was a small business owner himself (check out our story here), and our firm have a rich history of helping businesses with their retirement planning needs. We understand that your business and retirement aspirations aren’t limited to simple financial figures, and we are dedicated to create customized solutions that reflect your objectives. Read on to discover about your self-employed retirement plan options in St. Petersburg, FL, or give us a call at Correct Capital at 877-930-401k or contact us online to consult with a entrepreneurial financial advisor in St. Petersburg, FL today.
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Why St. Petersburg, FL 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. With customizable contribution options to considerable tax savings, consulting a financial advisor in St. Petersburg, FL helps you customize your retirement plan to suit your unique financial situation.
Flexibility That Fits Your Income
For those with fluctuating income over time, a plan like a SEP IRA or Solo 401(k) provides the option to tailor how much you save:
- Customizable Contributions: Set aside more during successful years and scale back when your earnings dip, so that your plan aligns with your financial situation.
- Roth Options: Choosing a Roth Solo 401(k) lets you pay taxes on contributions now, so you can withdraw tax-free later—a wise move if you anticipate your tax rate to be higher in the future.
Save Money on Taxes
Retirement plans for self-employed individuals deliver significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA reduce what you owe in taxes, allowing you to keep more of your income.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to compound.
- State-Specific Incentives: In some states, you might access extra credits as a business owner. These regional incentives help make these plans even more valuable.
- 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 put into a retirement plan, further reducing your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement goes beyond just how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Spreading your investments across a mix of asset classes like stocks and bonds serves to reduce risk while still growing your nest egg.
- Emergency Back-Up: Pairing your retirement plan with a dedicated business safety net helps you avoid using your retirement funds during challenging periods and incurring penalties.
Plan for the Future of Your St. Petersburg, FL Business
Preparing for retirement also helps you plan ahead for what’s next with your St. Petersburg, FL business:
- Selling Your Business: When selling your business, plans like SEP IRAs or Solo 401(k)s stay in your name and won’t be included in the sale. These savings ensure the financial stability you’ll need during retirement. Remember that while selling a business often leads to a capital gain, retirement plan contributions are subject to yearly maximums (e.g., a maximum of $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, including catch-up contributions, depending on plan details).
- Minimizing Taxes: Strategically planning your contributions minimizes the taxes you are required to pay when you sell your business.
- Succession Planning: For those winding down or handing over their business, your retirement accounts provide a stable foundation as you make this shift. You can also seek advice from a financial advisor with expertise in succession and retirement planning to help with taxes during the sale.
With the proper savings strategy, you manage your financial future, lower your tax bill, and establish a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in St. Petersburg, FL Now?
Time is one of the most important resources in retirement planning. Beginning sooner rather than later not only helps you grow a more substantial retirement fund but also minimizes 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 can have a substantial impact on the savings you’ll have when you reach retirement age. The primary reason is compound interest—the financial principle where your investments earn returns, and those returns, in turn, earn even more returns. The more time your money has to grow, the larger the effect of compounding.
Example: Taylor and Alex are both entrepreneurs. Their shared goal is to save $500,000 for retirement by age 65:
- Alex initiates savings of $5,000 annually at age 30.
- Taylor waits until age 40 but contributes $7,500 annually to make up for lost time.
By age 65, with an assumption of 7% annual return:
- Alex puts in $180,000 and accumulates $691,184.39*.
- Taylor puts in $195,500 but only ends up with $474,367.78*.
How Early Contributions Grow
Small, consistent savings contributed over time often create substantial growth. Take a look at this scenario showing the impact of compound interest:
- Starting at age 25: By investing $200 per month in a retirement plan with an average annual return of 7%, you’ll grow to approximately $497,303.29* by age 65.
- Starting at age 35: Contributing the same $200 per month would result in only $235,412.97* by age 65—a shortfall of over $260,000, simply due to a 10-year delay.
Saving early, the lower your annual savings needs each year to reach your retirement goals.
*The figures provided in this example are based on estimates generated with NerdWallet’s Compound Interest Calculator, based on a 7% annual return. These calculations involved multiplying yearly deposits by the years contributed. This information is intended as illustrative examples and do not guarantee future performance. Outcomes may change based on factors such as market conditions, fees, and personal factors. We recommend consulting a financial advisor for custom recommendations.
Take Control of Your Financial Future
If you’re self-employed in St. Petersburg, FL, it is often the case that you focus more on reinvesting in your business over saving for retirement. Even so, starting a plan now gives you the chance to:
- Benefit from tax-deferred growth or tax-free withdrawals in the future.
- Take advantage of adjustable savings that align with your income.
- Create a safety net that offers peace of mind, no matter how your business changes.
Starting early, 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 creating for yourself the freedom to concentrate on your dreams—both for your future retirement and your St. Petersburg, FL business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options available for entrepreneurs in St. Petersburg, FL, each with its own pros and cons. A financial advisor is available to help you evaluate the pros and cons of each option and determine the one best suited for your circumstances. In most cases, your self-employed retirement plan options in St. Petersburg, FL include:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent long-term savings plans that include distinct tax benefits. In a standard IRA, contributions are typically tax-deductible, and returns grow free of current taxes, but retirement distributions are taxable. In contrast, Roth IRAs require contributions are made with after-tax income, but eligible distributions during retirement, including earnings, are tax-free. 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, IRAs, including traditional and Roth options are accessible for individuals with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs remain $7,000, or $8,000 if you're 50 or older.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: SEP IRAs is a retirement plan that allows those who are self-employed to set aside a portion of their self-employment income. Contributions are strictly employer contributions an employer, so, as a independent business owner, you (the employee) would not be able to contribute 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 flat-dollar amount or a percentage of wages to employee accounts. SEP IRAs works well for entrepreneurs facing 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 standard 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 must not exceed:
- 25% of compensation, or
- $70,000 for 2025
For self-employed individuals, the contribution you can make 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 savings option for the self-employed designed for companies that have no employees or when the sole employee is your spouse. These plans operate much like standard 401(k) plans, and let you make contributions as both an employer and an employee with pre-tax money. This allows for more savings versus SEPs or IRAs; however, the increased savings potential can be balanced by more limited investment options. Using a solo 401(k), 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 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:
- Deferrals as an employee of up to 100% of your self-employment income, subject to the annual contribution limit. In 2025, those limits are $23,500, or $31,000 if you're over 50, or $34,750 for those who turn 60-63 in 2025.
- Contributions as an employer (as an employer) cannot exceed 25% of your adjusted self-employment income, which is defined as net profit minus half of your self-employment tax and the elective deferrals you made.
Total contributions are capped at $70,000, or $77,500 for individuals aged 50+ (as of 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan offers a structured retirement solution that provides a set amount to entrepreneurs upon retirement. As opposed to defined contribution plans, this plan is not influenced by market performance, but lets individuals clearly understand the precise amount they'll have in retirement. This strategy is best suited for higher-income professionals who are focused on saving a significant sum for retirement and can commit to making sizeable contributions. Contributions grow tax-free until withdrawal, and withdrawals are taxed as income in retirement.
Eligibility: Any self-employed individual operating a solo business or with less than five employees can open an individual defined benefit plan, but it's most commonly suggested for those over 50 who generate a minimum of $250,000 yearly. In most cases, good candidates for defined benefit plans are:
- Entrepreneurs 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
- Businesses that have demonstrated consistent profit patterns
- Business leaders over age 40 who desire to "catch up" or accelerate the retirement savings
Contribution Limits: The maximum allowable contribution requires calculation from an actuary based on your earnings, age, and retirement objectives. Contribution limits are adjusted each year.
The Importance of a Financial Advisor in St. Petersburg, FL for Your Self-Employed Retirement Plan
Working with a financial advisor in St. Petersburg, FL experienced with retirement plans for the self-employed is an essential partner for entrepreneurs. They offer the knowledge to assist guide you through the challenges of retirement planning and design a personalized approach that aligns with your goals. A financial advisor in St. Petersburg, FL will evaluate your financial situation, determine how much risk you’re comfortable with, and guide you in making informed decisions about saving and investing for retirement. Included in what we do for you involves:
- Help you choose a plan that best fits your needs and goals
- Tailor the plan to your specific situation even further
- Create a written plan as required by IRS rules
- Arrange a trust plan for assets
- Help you understand the plan's terms
- Monitor and adjust your plan when necessary
- Offer continued financial education and guidance to help you navigate your retirement journey
- Increase your retirement income by making the most of your social security
Self-Employed Retirement Plans in St. Petersburg, FL: Correct Capital's Process
Self-employed individuals in St. Petersburg, FL who aren’t equipped with the time or understanding to manage their own retirement planning on their own may end up overwhelmed by their available plans. Through our team at Correct Capital, our St. Petersburg, FL financial advisors take on the majority of your savings plan setup for you, and strive to ensure meeting your financial objectives 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 will assess if we're a good fit for you and your business. This initial call allows us to understand what you're looking for with no pressure or extensive time commitment 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 future objectives. This enables us to craft a tailored approach designed just for you.
- Review Your Plan: When we finalize a plan using the information you provide, we'll meet with you and go over your plan thoroughly to ensure you understand it 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 start saving. Over the course of our partnership, we'll have regular meetings and track your progress to keep it tailored to your evolving circumstances.
Our St. Petersburg, FL financial advisors and retirement plan consultants are fiduciary advisors, which means they are committed by law and ethics to do what's in your best interest.
Other financial advisory services we offer in St. Petersburg, 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 St. Petersburg, FL
You don't see your business as "just a business", and your St. Petersburg, FL financial advisors need to offer more than just good financial guidance. With Correct Capital, we take the time to get to know our clients and their businesses to deliver personalized self-employed retirement plans. All our clients in St. Petersburg, FL benefit from our I.O.U. promise: all of the advice you get from us 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.
