Self-employed retirement plans Syracuse, NY. The flexibility of being your own boss in Syracuse, NY is one of the best aspects of being self-employed. That said, this flexibility can come with certain challenges, especially regarding building your retirement fund, since you don't have access to retirement programs through an employer. Only 13% of self-employed individuals have a workplace retirement plan, but many could benefit from exploring their options. In addition to enjoying a more comfortable retirement, working with a financial advisor in Syracuse, NY to establish your self-employed retirement plan offers significant tax advantages that allow your business to grow and succeed.
Few Syracuse, NY financial advisory and retirement planning firms truly grasp the challenges faced by entrepreneurs better than Correct Capital. Our company’s founder grew up with a father who was a small business owner himself (read more of our story here), and our firm have a rich history of helping businesses with their retirement planning needs. We recognize that your professional and personal aspirations aren’t limited to just monetary concerns, and we work tirelessly to offer tailored solutions that reflect your objectives. Continue exploring to find out about your self-employed retirement plan options in Syracuse, NY, or call Correct Capital at 877-930-401k or contact us online to speak with a self-employed financial advisor in Syracuse, NY today.
Why Syracuse, NY Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals are essential for preparing you for the future, they also offer immediate benefits today. With customizable contribution options to substantial tax savings, working with a financial advisor in Syracuse, NY helps you design 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) gives you the freedom to adjust how much you save:
- Customizable Contributions: Save extra during successful years and reduce savings when income is lower, ensuring your plan fits your cash flow.
- Roth Options: A Roth Solo 401(k) lets you handle taxes upfront, enabling you to withdraw your savings tax-free down the road—a wise move if you anticipate your tax rate will increase in the future.
Save Money on Taxes
Self-employed retirement plans deliver valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA lower your taxable income, allowing you to keep more of your hard-earned money.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, giving your money more time to grow.
- State-Specific Incentives: In some states, you might access additional deductions as a business owner. These regional incentives make these plans even more valuable.
- Retirement Savings Contributions Credit (Saver’s Credit): Eligible individuals can apply for a credit of up to 50% of the first $2,000 contributed a retirement plan, further reducing your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement requires more than how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Distributing your investments across different stocks, bonds, and other assets can help minimize exposure to risk while continuing to build your retirement fund.
- Emergency Back-Up: Pairing your retirement plan with a business emergency fund ensures you don’t dipping into savings during tough times and facing tax penalties.
Plan for the Future of Your Syracuse, NY Business
Preparing for retirement enables you to plan ahead for what’s next with your Syracuse, NY business:
- Selling Your Business: For those considering a sale, retirement accounts like SEP IRAs and Solo 401(k)s remain yours and don’t transfer with the business. These accounts offer the steady income you’ll need in the future. Keep in mind that while selling your business results in a capital gain, retirement plan contributions 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: Making the most of retirement savings can reduce the taxes you’ll owe when you pass on your business.
- Succession Planning: Whether you’re transferring ownership, your retirement accounts ensure the funds you need 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 during the sale.
With the right retirement plan, you gain control over your financial future, reduce your tax burden, and establish a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Syracuse, NY Now?
There’s no denying that time is one of the most crucial assets in retirement planning. Beginning sooner rather than later not only lets you accumulate a larger nest egg but also lowers the stress of catching up later in life. Here’s why it makes sense to begin today:
The Cost of Waiting
Delaying your retirement savings can have a substantial impact on the amount you’ll have when you reach retirement age. The main reason is compound interest—the financial principle where your investments grow, and those returns, in turn, accumulate even more returns. The longer your money has to grow, the greater the effect of compounding.
Example: Alex and Taylor are both entrepreneurs. Both of them want to save $500,000 for retirement by age 65:
- Alex begins contributing $5,000 annually at age 30.
- Taylor postpones starting contributions to age 40 but puts away $7,500 annually to bridge the gap.
By age 65, using a projected 7% annual return:
- Alex invests $180,000 and ends up with $691,184.39*.
- Taylor invests $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Regular, modest investments invested steadily often create substantial growth. Here’s a simple scenario showing the effect of compound interest:
- Starting at age 25: By investing $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: Investing the same $200 per month yields only $235,412.97* by age 65—a difference of over $260,000, just from a 10-year delay.
Starting sooner, the lower your annual savings needs each year to achieve your retirement goals.
*The figures provided in this example are estimates calculated using NerdWallet’s Compound Interest Calculator, based on 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. Actual results may vary based on elements like market conditions, fees, and your unique situation. We recommend consulting a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
As a self-employed person in Syracuse, NY, it can be tempting to focus more on reinvesting in your business rather than saving for retirement. Even so, starting a plan now enables you to:
- Take advantage of tax-free future growth or tax-free withdrawals in the future.
- Benefit from adjustable savings that align with your income.
- Build a financial cushion that offers peace of mind, 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 giving yourself the ability to turn your attention to your dreams—both for your future retirement and your Syracuse, NY business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options designed for those working for themselves in Syracuse, NY, each offering its own advantages and considerations. A financial advisor will guide you to understand the pros and cons of each plan and choose the one ideal for your needs. Typically, your self-employed retirement plan options in Syracuse, NY consist of:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent financial tools for retirement that offer distinct tax benefits. In a traditional IRA, you can usually deduct your contributions from taxable income, and returns grow free of current taxes, but money taken out during retirement are taxed as income. In contrast, with Roth IRAs, you contribute from post-tax earnings, but qualified withdrawals in retirement, including earnings, are not taxed. In both accounts, withdrawals are penalty-free if you are at least 59½.
Eligibility: While many retirement plans, such as 401(k)s, are tied to employment, both traditional and Roth IRAs are accessible for individuals with a source of income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 if you qualify for catch-up contributions.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA serves as a retirement savings option that permits self-employed individuals to contribute a percentage of their net earnings. Contributions can only be made by an employer, so, as a self-employed individual, you (the employee) would not be able to contribute more than 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. It's your choice whether to contribute a set monetary value or a percentage of wages to employee accounts. SEP IRAs is a good option for businesses that experience cycles of high revenue and low revenue. In contrast to some alternatives, SEP IRAs lack costly startup or administrative fees.
SEPs function like traditional IRAs, where the contributions are tax-deferred and money withdrawn is subject to income tax.
Eligibility: Employers of any type, including self-employed individuals can open a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA are the lesser of:
- 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: A Solo 401(k) plan, commonly known as an Individual 401(k) or one-participant 401(k) plan, is a savings option for the self-employed meant for companies that have no employees or when the sole employee is your spouse. These plans operate much like traditional employer-managed 401(k) plans, and let you make contributions as both the employer and the employee with pre-tax money. This allows for more savings compared to SEPs or IRAs; however, the increased savings potential often come with more restricted investment choices. With this type of plan, you can make either traditional or Roth deferrals, which have the same tax benefits as their IRA contribution counterparts.
Eligibility: This plan is exclusively for business owners and their spouses can set up 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:
- Elective deferrals (as an employee) of up to 100% of your self-employment income, capped at 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 individuals aged 60-63 in 2025.
- Contributions as an employer (as an employer) must not surpass 25% of your net earnings from self-employment, which is your net profit minus half of your self-employment tax and the elective deferrals you made.
The total contribution cannot exceed $70,000, or $77,500 for those aged 50 and older (for 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan is a retirement option that provides 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 enables participants to determine what they'll get in retirement. This strategy is best suited for higher-income entrepreneurs who are focused on saving a substantial amount for retirement and can commit to making sizeable contributions. Contributions are tax deferred, and withdrawals are taxable as income upon retirement.
Eligibility: Self-employed professionals managing a one-person company or with less than five employees are eligible to open an individual defined benefit plan, but it's generally suggested for people above age 50 who earn at least $250,000 a year. Generally, good candidates for defined benefit plans are:
- Partners or owners who desire to contribute more than $70,000 (or $77,500 for individuals 50 and older)
- Businesses currently investing 3-4% with plans to contribute more
- Organizations showing consistent profit patterns
- Entrepreneurs over age 40 who wish to accelerate savings or accelerate the retirement savings
Contribution Limits: The cap on contributions is calculated by an actuary using your income, age, and retirement goals. Contribution limits are updated yearly.
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 important asset for those working for themselves. They bring the skills needed to navigate the complexities of retirement planning and design a personalized approach that reflects your aspirations. An expert in your area will review your finances, determine how much risk you’re comfortable with, and assist you in making informed decisions about saving and investing for retirement. Part of what we do for you includes:
- Guide you in choosing a plan that best fits your needs and goals
- Customize the plan to your specific situation even further
- Create a written plan that complies with IRS regulations
- Organize a trust plan to manage your assets
- Help you understand the plan's terms
- Monitor and adjust your plan to keep it aligned with your goals
- Provide ongoing education and advice 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 Syracuse, NY: Correct Capital's Process
Syracuse, NY business owners who aren’t equipped with the time or understanding to oversee their own retirement planning on their own may end up overwhelmed as they look at their choices. At Correct Capital, our Syracuse, NY financial advisors manage the majority of your retirement strategy for you, and strive to ensure meeting your retirement goals as hassle-free as possible for you. We will guide you in creating your self-employed retirement plan in a quick, four-step process:
- Schedule a Call: In just 20 minutes, a member of our advisor team can determine if we're suited to your needs for you and your business. This initial call allows us to get a sense of your goals with no obligation or major time investment on your part.
- Gather Information: Should we agree to proceed, we'll gather information, including your employee count, your current financial situation, and your long-term savings targets. This allows us to put together a custom plan that aligns with your goals.
- Review Your Plan: After we put together a plan from the information you provide, we'll sit down with you and review your plan in detail to ensure you understand it and show how it aligns with your goals.
- Implementation and Monitoring: Once we've agreed on your plan, we'll implement the necessary steps so you can begin contributing. Over the course of our partnership, we'll check in and monitor your plan to ensure it stays suited to your needs.
Our Syracuse, NY financial advisors and retirement plan consultants are fiduciary advisors, meaning they are required by law and ethical standards to do what's in your best interest.
Other financial advisory services we offer in Syracuse, NY 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 Syracuse, NY
You don't see your business as "just a business", and your Syracuse, NY financial advisors need to offer more than just good financial guidance. At Correct Capital, we take the time to get to know our clients and their businesses to deliver customized self-employed retirement plans. We offer all our Syracuse, NY clients our I.O.U. promise: everything we recommend will be independent, objective, and unbiased. To take the first step on your self-employment retirement plan, contact Correct Capital now at 877-930-401k or contact us online.
