Self-employed retirement plans Tampa, FL. The freedom of owning your own business in Tampa, FL is one of the greatest advantages of working for yourself. However, this freedom often comes with a lack of security, notably in terms of building your retirement fund, because you don't have access to a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, although many could benefit from understanding their retirement options. In addition to achieving a more secure retirement, partnering with a financial advisor in Tampa, FL to create your self-employed retirement plan offers significant tax advantages that enable both you and your business to thrive.
Few Tampa, FL financial advisory and retirement planning firms understand the needs of self-employed individuals as well as Correct Capital. The father of our founder was a small business owner himself (check out our story here), and our firm are deeply experienced in 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 to meet your unique goals. Read on to discover about your self-employed retirement plan options in Tampa, FL, or call Correct Capital at 877-930-401k or contact us online to consult with a entrepreneurial financial advisor in Tampa, FL today.
Why Tampa, FL Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals not only prepare you for the future, they also deliver real benefits today. With customizable contribution options to substantial tax savings, partnering with a financial advisor in Tampa, FL helps you customize your retirement plan to align with your specific needs.
Flexibility That Fits Your Income
For those with fluctuating income from year to year, a plan like a SEP IRA or Solo 401(k) offers the freedom to adjust how much you save:
- Customizable Contributions: Save extra during high-income years and cut back when income is lower, so your plan aligns with your current income.
- Roth Options: Choosing a Roth Solo 401(k) lets you pay taxes on contributions now, allowing you to withdraw without tax penalties in the future—a smart decision if you anticipate your tax rate to be higher in the future.
Save Money on Taxes
Plans designed for the self-employed deliver valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA shrink your tax liability, helping you keep more of your income.
- Tax-Deferred Growth: You won't pay taxes on investment growth until you withdraw it, which gives your money more time to accumulate.
- State-Specific Incentives: Based on your location, you could qualify for state-specific credits as a business owner. These local incentives help make these plans even more beneficial.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can claim a tax credit of up to 50% of the first $2,000 contributed a retirement plan, helping to lower your tax bill even more.
Protect Your Savings With Smart Investments
Creating a stable future isn’t only about how much you save—it’s also about how you invest:
- Diversified Portfolios: Allocating your investments across a mix of stocks, bonds, and alternatives serves to minimize exposure to risk while still growing your savings.
- Emergency Back-Up: Pairing your retirement plan with a dedicated business safety net ensures you don’t tapping into your nest egg during challenging periods and risking extra costs.
Plan for the Future of Your Tampa, FL Business
Retirement planning can assist you plan ahead for what’s next with your Tampa, FL business:
- Selling Your Business: If you’re planning to sell, retirement accounts like SEP IRAs and Solo 401(k)s remain yours and won’t be included in the sale. These savings offer the financial stability you’ll need during retirement. Keep in mind that while selling your business results in a capital gain, contributions to retirement accounts are capped at annual limits (e.g., up to $7,000 for IRAs or up to $70,000 for Solo 401(k)s, including catch-up contributions, according to plan rules).
- Minimizing Taxes: Using retirement contributions wisely minimizes the taxes you might face when you pass on your business.
- Succession Planning: If you’re passing the business on, your retirement accounts provide financial security during the change. You can also work with a financial advisor who specializes in succession planning and retirement accounts to minimize tax burdens on the sale.
With the right retirement plan, you gain control over 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 Tampa, FL Now?
Time is one of the most important factors when it comes to saving for retirement. Getting a head start not only allows you to build a larger nest egg but also reduces the pressure of playing catch-up as you get older. The following are reasons why it makes sense to begin today:
The Cost of Waiting
Waiting to start your retirement fund can have a substantial impact on the amount you’ll have when you reach retirement age. The primary reason is compound interest—the powerful process where your investments generate earnings, and those returns, then, earn even more returns. The longer your money has to grow, the larger the benefit of this compounding process.
Example: Alex and Taylor are both self-employed professionals. Both of them want to save $500,000 for retirement by age 65:
- Alex begins contributing $5,000 annually at age 30.
- Taylor delays savings until age 40 but saves $7,500 annually to catch up.
By age 65, with an assumption of 7% annual return:
- Alex contributes $180,000 and achieves a total of $691,184.39*.
- Taylor invests $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Small, consistent savings made consistently can lead to impressive growth. Consider this example showing the impact of compounding:
- 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 leaves you with only $235,412.97* by age 65—a difference of over $260,000, all because of a 10-year delay.
Starting sooner, the less you need to save each year to reach your retirement goals.
*These calculations are estimates generated with 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 do not guarantee future performance. Your individual results may differ based on elements like market conditions, fees, and personal factors. We recommend consulting a financial advisor for personalized advice.
Take Control of Your Financial Future
As a self-employed person in Tampa, FL, it can be tempting to put more emphasis on reinvesting in your business over saving for retirement. However, starting a plan now enables you to:
- Benefit from tax-free future growth or penalty-free withdrawals in the future.
- Take advantage of flexible contributions that change with your earnings.
- Build a financial cushion that provides security, no matter how your business changes.
The sooner you start, the less you’ll need to worry about playing catch-up later in life. Saving for retirement now means gaining control over your financial future and creating for yourself the opportunity to focus on your objectives—both for your future retirement and your Tampa, FL business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options open for self-employed individuals in Tampa, FL, each offering its own pros and cons. A financial advisor can help you evaluate the benefits and drawbacks of each plan and determine the one ideal for your circumstances. Generally speaking, your self-employed retirement plan options in Tampa, FL include:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent retirement savings vehicles that offer specific tax advantages. 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 subject to income tax. In contrast, with Roth IRAs, you contribute from post-tax earnings, but eligible distributions during retirement, including earnings, are exempt from taxes. In both types of accounts, withdrawals don’t incur penalties if you are at least 59½.
Eligibility: Unlike plans linked to your job, traditional and Roth IRAs 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 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 save a percentage of their net business profits. Contributions must come from an employer, so, as a sole proprietor, you (the employee) cannot make additional contributions above 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 entrepreneurs facing periods of inconsistent earnings. In contrast to some alternatives, SEP IRAs lack the high fees associated with starting or maintaining other plans.
SEPs function like traditional IRAs, where the contributions are tax-deferred and retirement distributions are taxable.
Eligibility: Both employers and self-employed individuals can establish 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 allowable contribution is based on a special calculation.
Solo 401(k)
Plan Overview: A Solo 401(k) plan, also called an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan meant for businesses without employees or when the sole employee is your spouse. These plans are similar to traditional employer-managed 401(k) plans, and enable contributions as both an employee or an employer with pre-tax money. This provides more savings versus SEPs or IRAs; however, the additional opportunities often come with more limited investment options. 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 are eligible to open and contribute to a solo 401(k).
Contribution Limits: For self-employed individuals with a solo 401(k) plan, you can make two types of contributions:
- Elective deferrals (as an employee) of up to 100% of your self-employment income, subject to the annual contribution limit. For 2025, the limits will be $23,500, or $31,000 if you are 50 or older, or $34,750 for individuals aged 60-63 in 2025.
- 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 deferrals you made.
Your combined contributions must not surpass $70,000, or $77,500 for individuals aged 50+ (in 2025), $81,250 for individuals turning 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan offers a structured retirement solution that delivers a pre-established payout to entrepreneurs upon retirement. As opposed to defined contribution plans, this plan is not influenced by market performance, but enables participants to determine exactly how much they'll have in retirement. This plan is recommended for wealthier self-employed individuals who are focused on saving a large amount for retirement and can commit to making substantial contributions. Contributions offer tax-deferred growth, and withdrawals are taxed as income upon retirement.
Eligibility: Any self-employed individual managing a one-person company or with less than five employees can open an individual defined benefit plan, but it's generally recommended for people above age 50 who earn at least $250,000 a year. In most cases, good candidates for defined benefit plans tend to be:
- Entrepreneurs who desire to contribute more than $70,000 (or $77,500 if over age 50)
- Businesses currently investing 3-4% with plans to contribute more
- Businesses with proven consistent profit patterns
- Partners or owners over age 40 who desire to "catch up" or accelerate the retirement savings
Contribution Limits: The contribution limit is calculated by an actuary using your financial situation, age, and savings targets. Contribution limits are updated yearly.
The Importance of a Financial Advisor in Tampa, FL for Your Self-Employed Retirement Plan
A financial advisor in Tampa, FL specialized in self-employed retirement plans serves as an important asset for those working for themselves. They have the expertise to help navigate the complexities of retirement planning and design a customized plan that matches your objectives. Your advisor in Tampa, FL will review your finances, identify your risk preferences, and assist 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 your specific situation even further
- Adopt a written plan in accordance with IRS guidelines
- Set up an asset trust plan
- Help you understand the plan's terms
- Track and fine-tune your plan as needed
- Deliver continuous support and financial insights to help you navigate your retirement journey
- Maximize what you receive in retirement by optimizing your social security benefits
Self-Employed Retirement Plans in Tampa, FL: Correct Capital's Process
Tampa, FL business owners who aren’t equipped with the time or understanding to handle their self-employed retirement plan on their own often feel overwhelmed as they look at their options. Through our team at Correct Capital, our Tampa, FL financial advisors handle the majority of your retirement strategy for you, and strive to ensure meeting your future savings targets as hassle-free as possible for you. We can help you get set up your self-employed retirement plan in just four steps:
- 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 brief introduction allows us to get a sense of your goals with no obligation or major time investment on your part.
- Gather Information: If we both decide to move forward, we'll request information, including your employee count, your current financial situation, and your retirement goals. This helps us create a personalized strategy suited specifically for your needs.
- Review Your Plan: After we put together a plan using the information you provide, we'll schedule a meeting and discuss your plan in detail to make sure it's clear 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 initiate your savings journey. Over the course of our partnership, we'll check in and review your strategy to ensure it stays suited to your needs.
Our Tampa, FL financial advisors and retirement plan consultants act as fiduciary advisors, who are obligated to they are legally and ethically bound to do what's in your best interest.
Other financial advisory services we offer in Tampa, FL include:
- Financial Planning for Business Owners
- Comprehensive Financial Planning
- Retirement Income Planning
- Investment Planning
- Retirement Financial Planning
- Independent Financial Advisor
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
Call Correct Capital for Your Self-Employed Retirement Plan in Tampa, FL
You don't see your business as "just a business", and your Tampa, FL financial advisors should provide more than basic financial recommendations. Correct Capital takes pride in, we focus on building a relationship with our clients and their businesses to provide personalized self-employed retirement plans. All our clients in Tampa, FL benefit from our I.O.U. promise: all guidance we provide will be independent, objective, and unbiased. To begin on your self-employment retirement plan, contact Correct Capital now at 877-930-401k or contact us online.
