Self-employed retirement plans Syracuse, NY. The flexibility of owning your own business in Syracuse, NY is one of the greatest advantages of having a self-directed career. Even so, this independence often comes with a lack of security, notably in terms of retirement savings, because you don't have the benefit of retirement programs through an employer. Only 13% of self-employed individuals have a workplace retirement plan, yet countless should consider exploring their options. In addition to having a financially stable retirement, partnering with a financial advisor in Syracuse, NY to create your self-employed retirement plan delivers significant tax advantages that enable you to move your business forward.
Few Syracuse, NY wealth management and retirement planning firms are as attuned to the requirements of entrepreneurs better than Correct Capital. Our founder's father was a small business owner himself (read more of our story here), and Correct Capital are deeply experienced in supporting entrepreneurs with their retirement planning needs. We understand that your professional and personal aspirations go far beyond simple financial figures, and we work tirelessly to create personalized solutions that reflect your objectives. Continue exploring to find out about your self-employed retirement plan options in Syracuse, NY, or reach out to Correct Capital at 877-930-401k or contact us online to talk to a entrepreneurial financial advisor in Syracuse, NY today.
Schedule a Meeting With an Advisor Today
Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
Schedule a 15-Minute Introductory Call
Why Syracuse, NY Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals not only prepare you for the future, they also offer immediate benefits today. With customizable contribution options to substantial tax savings, consulting a financial advisor in Syracuse, NY enables you to customize your retirement plan to fit your specific needs.
Flexibility That Fits Your Income
If your income changes over time, a plan like a SEP IRA or Solo 401(k) provides the freedom to modify how much you save:
- Customizable Contributions: Set aside more during high-income years and reduce savings when your earnings dip, so that your plan works with your current income.
- Roth Options: Choosing a Roth Solo 401(k) lets you settle taxes at the time of contribution, so you can withdraw without tax penalties in the future—a smart decision if you expect your tax rate is likely to rise in the future.
Save Money on Taxes
Retirement plans for self-employed individuals deliver powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA shrink your tax liability, helping you keep more of your income.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to grow.
- State-Specific Incentives: Depending on where you live, you may be eligible for state-specific tax breaks as a self-employed individual. These state-level incentives help make these plans even more beneficial.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can apply for a credit of up to 50% of the first $2,000 they contribute a retirement plan, helping to lower your tax bill even more.
Protect Your Savings With Smart Investments
Creating a stable future goes beyond just how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Allocating your investments across varied stocks, bonds, and other assets is a smart way to mitigate financial risk while continuing to build your nest egg.
- Emergency Back-Up: Supplementing your retirement savings with a business emergency fund prevents you from tapping into your nest egg during financial hardships and risking extra costs.
Plan for the Future of Your Syracuse, NY Business
A thoughtful retirement strategy also helps you plan ahead for what’s next with your Syracuse, NY business:
- Selling Your Business: For those considering a sale, accounts such as SEP IRAs or Solo 401(k)s stay in your name and don’t transfer with the business. These accounts ensure the financial stability you’ll need in the future. Remember that while the sale of a business usually creates a capital gain, deposits into these plans are capped at annual limits (e.g., as much as $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, factoring in catch-up contributions, according to plan rules).
- Minimizing Taxes: Strategically planning your contributions helps lower the taxes you are required to pay when you pass on your business.
- Succession Planning: If you’re passing the business on, your retirement accounts provide the funds you need as you make this shift. You may also work with a financial advisor who specializes in succession planning and retirement accounts to reduce taxes on the sale.
With the right retirement plan, you gain control over your financial future, cut down your tax obligations, and create a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Syracuse, NY Now?
Time remains one of the most important factors in retirement planning. Starting early not only allows you to build a larger nest egg but also minimizes the pressure of catching up later in life. Here’s why it pays to take action now:
The Cost of Waiting
Putting off saving for retirement could lead to a major impact on the amount you’ll have when you retire. The main reason is compound interest—the concept where your investments generate earnings, and those returns, subsequently, generate even more returns. The greater time span your money has to grow, the more significant the effect of compounding.
Example: Taylor and Alex are both self-employed individuals. Their shared goal is 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 puts away $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 can lead to impressive growth. Take a look at this scenario showing the impact of compounding:
- Starting at age 25: If you invest $200 per month in a retirement plan with an expected yearly growth rate of 7%, you’ll end up with $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 difference of over $260,000, all because of a 10-year delay.
Saving early, the less effort required each year to achieve your retirement goals.
*The numbers shown in this scenario are estimates calculated using NerdWallet’s Compound Interest Calculator, with the assumption of a 7% annual return. These calculations involved multiplying yearly deposits by the years contributed. These examples are meant to provide general guidance and cannot predict actual future outcomes. Your individual results may differ depending on factors such as market conditions, fees, and personal factors. We recommend consulting a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
If you’re self-employed in Syracuse, NY, it can be tempting to put more emphasis on reinvesting in your business rather than saving for retirement. However, starting a plan now enables you to:
- Take advantage of tax-free future growth or tax-free withdrawals in the future.
- Take advantage of flexible contributions that adapt to your income.
- Establish a long-term safety measure that offers peace of mind, no matter how your business changes.
The sooner you start, the less you’ll have to worry about playing catch-up later in life. Taking steps toward your retirement goals today means gaining control over your financial future and giving yourself the freedom to concentrate on your objectives—both for your golden years and your Syracuse, NY business.
Types of Self-Employed Retirement Plans
There are several retirement savings options open for entrepreneurs in Syracuse, NY, each providing its own pros and cons. A financial advisor is available to help you understand the advantages and disadvantages of each choice and identify the one best suited for your needs. Generally speaking, your self-employed retirement plan options in Syracuse, NY consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are financial tools for retirement that include specific tax advantages. In a standard IRA, contributions are typically tax-deductible, and earnings grow without immediate taxation, but money taken out during retirement are taxed as income. In contrast, with Roth IRAs, you contribute are made with after-tax income, but eligible distributions during retirement, including earnings, are exempt from taxes. In both accounts, withdrawals don’t incur penalties provided 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 taxable earnings.
Contribution Limits: For 2025, annual contribution limits for IRAs remain $7,000, or $8,000 if you qualify for catch-up contributions.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: SEP IRAs offers a way to save for retirement that allows entrepreneurs 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) would not be able to contribute beyond the 25% you (the employer) have designated. If you have employees, you are obligated to contribute the same amount for them as you do for yourself. You have the flexibility to contribute a fixed dollar figure or a percentage of wages to employee accounts. This type of plan is a good option for businesses that experience periods of inconsistent earnings. Unlike other plans, SEP IRAs lack the high fees associated with starting or maintaining other plans.
SEPs function like traditional IRAs, where you contribute pre-tax dollars and retirement distributions are taxable.
Eligibility: Any employer, including the self-employed 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
As a self-employed person, the allowable contribution 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 intended for businesses without employees or when the sole employee is your spouse. These plans function similarly to standard 401(k) plans, and enable contributions as both an employer and an employee with pre-tax money. This provides more savings compared to SEPs or IRAs; however, the increased savings potential often come with more limited investment options. 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: Solo 401(k)s are available solely to business owners and their spouses may establish and contribute to a solo 401(k).
Contribution Limits: If you are self-employed with a solo 401(k) plan, you have the ability to make two types of contributions:
- Elective deferrals (as an employee) of up to 100% of your self-employment income, up to 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.
- Employer profit-sharing contributions (as an employer) are limited to 25% of your net earnings from self-employment, which is your net profit minus half of your self-employment tax and the employee contributions you made.
Your combined contributions must not surpass $70,000, or $77,500 for those aged 50 and older (for 2025), $81,250 for individuals turning 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan is a retirement option that guarantees a set amount to business owners upon retirement. As opposed to defined contribution plans, a defined benefit plan doesn't fluctuate based on investment returns, but enables participants to determine exactly how much they'll have in retirement. This plan is best suited for high-earning professionals who aim to accumulate a significant sum for retirement and are prepared to contribute sizeable contributions. Contributions are tax deferred, and withdrawals are taxed as income in retirement.
Eligibility: Entrepreneurs running an owner-only business or with a small staff of under five are eligible to open an individual defined benefit plan, but it's most commonly advised for individuals aged 50+ who generate a minimum of $250,000 yearly. Generally, good candidates for defined benefit plans are:
- Entrepreneurs who desire to contribute more than $70,000 (or $77,500 for those aged 50+)
- Companies already contributing 3-4% but are open to increasing contributions
- Organizations with proven consistent profit patterns
- Business leaders over age 40 who aim to quickly build retirement savings or accelerate the retirement savings
Contribution Limits: The cap on contributions must be determined by an actuary based on your earnings, age, and retirement objectives. Contribution limits are adjusted each year.
The Importance of a Financial Advisor in Syracuse, NY for Your Self-Employed Retirement Plan
A financial advisor in Syracuse, NY specialized in self-employed retirement plans can be an essential partner for entrepreneurs. They offer the knowledge to assist understand the intricacies of saving for retirement and design a personalized approach that matches your objectives. A financial advisor in Syracuse, NY will evaluate your financial situation, understand your risk tolerance, and assist you in selecting the best options about saving and investing for retirement. A key part of what we do for you features:
- Assist in selecting a plan that aligns with your objectives and circumstances
- 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 as needed
- Deliver continuous support and financial insights to help you navigate your retirement journey
- Boost your retirement earnings by optimizing your social security benefits
Self-Employed Retirement Plans in Syracuse, NY: Correct Capital's Process
Entrepreneurs in Syracuse, NY who aren’t equipped with the time or understanding to handle their own retirement planning themselves may end up overwhelmed when faced with their choices. At Correct Capital, our Syracuse, NY financial advisors manage the bulk of your retirement planning for you, to help make meeting your future savings targets as easy as possible for you. We are here to assist you in setting up your self-employed retirement plan in four simple steps:
- Schedule a Call: It only takes 20 minutes, a member of our advisor team will assess if we're suited to your needs for you and your business. This short conversation lets us get a sense of your goals with no pressure or significant effort on your part.
- Gather Information: Once we mutually decide to continue, we'll ask for information, including how many employees you have (if any), your present financial standing, and your future objectives. This helps us create a tailored approach designed just for you.
- Review Your Plan: When we finalize a plan based on the information you provide, we'll sit down with you and review your plan step by step 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 put everything in place so you can begin contributing. Throughout our relationship, we'll check in and review your strategy to keep it tailored to your evolving circumstances.
Our Syracuse, NY financial advisors and retirement plan consultants serve as 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 Syracuse, NY 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 Syracuse, NY
You don't see your business as "just a business", and your Syracuse, NY financial advisors must deliver more than just good financial guidance. Correct Capital takes pride in, we focus on building a relationship with our clients and their businesses to create personalized self-employed retirement plans. To every client in Syracuse, NY, we provide our I.O.U. promise: all guidance we provide will be independent, objective, and unbiased. To get started on your self-employment retirement plan, reach out to Correct Capital at 877-930-401k or contact us online.
