Self-employed retirement plans Tulsa, OK. The freedom of being your own boss in Tulsa, OK is one of the greatest advantages of being self-employed. Even so, this freedom sometimes brings with a lack of security, notably regarding retirement savings, since you don't have the benefit of employer-sponsored retirement plans. Only 13% of self-employed individuals have a workplace retirement plan, yet countless should consider understanding their retirement options. In addition to achieving a more secure retirement, seeking advice from a financial advisor in Tulsa, OK to create your self-employed retirement plan delivers significant tax advantages that help both you and your business to thrive.
Few Tulsa, OK financial advisory and retirement planning firms truly grasp the challenges faced by small business owners quite like 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 take pride in helping businesses with their retirement planning needs. We recognize that your business and retirement aspirations go far beyond simple financial figures, and we are dedicated to offer customized solutions aligned with your vision. Keep reading to learn more about your self-employed retirement plan options in Tulsa, OK, or call Correct Capital at 877-930-401k or contact us online to consult with a small business financial advisor in Tulsa, OK today.
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Why Tulsa, OK Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals help prepare you for the future, they also provide tangible benefits today. With customizable contribution options to substantial tax savings, partnering with a financial advisor in Tulsa, OK enables you to design your retirement plan to fit 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) gives you the flexibility to adjust how much you save:
- Customizable Contributions: Save extra during profitable years and scale back when income is lower, so that your plan fits your current income.
- Roth Options: Choosing a Roth Solo 401(k) lets you settle taxes at the time of contribution, allowing you to withdraw without tax penalties in the future—an advantageous choice if you anticipate your tax rate is likely to rise in the future.
Save Money on Taxes
Self-employed retirement plans deliver valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a Solo 401(k) reduce what you owe in taxes, helping you keep more of your hard-earned money.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, giving your money more time to accumulate.
- State-Specific Incentives: Based on your location, you may be eligible for extra tax breaks as a business owner. These local incentives help make these plans even more beneficial.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can take advantage of a credit of up to 50% of the first $2,000 they contribute a retirement plan, further reducing your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement isn’t only about how much you save—it’s also linked to the way you invest:
- Diversified Portfolios: Spreading your investments across different stocks, bonds, and other assets serves to reduce risk while continuing to build your retirement fund.
- Emergency Back-Up: Combining your retirement strategy and a business emergency fund prevents you from using your retirement funds during challenging periods and incurring penalties.
Plan for the Future of Your Tulsa, OK Business
Retirement planning also helps you plan ahead for what’s next with your Tulsa, OK business:
- Selling Your Business: For those considering a sale, plans like SEP IRAs or Solo 401(k)s stay in your name and are not part of the sale. These savings offer the reliable income you’ll need in the future. Keep in mind that while the sale of a business usually creates a capital gain, contributions to retirement accounts 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, with catch-up contributions, according to plan rules).
- Minimizing Taxes: Making the most of retirement savings minimizes the taxes you might face when you transfer your business.
- Succession Planning: Whether you’re transferring ownership, your retirement accounts offer a stable foundation through the transition. You might want to seek advice from a financial advisor who specializes in succession planning and retirement accounts to help with taxes associated with the transaction.
With the best-fit retirement strategy, you can take control of your financial future, reduce your tax burden, and establish a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Tulsa, OK Now?
There’s no denying that time is one of the most valuable assets when it comes to saving for retirement. Getting a head start not only helps you grow a more substantial retirement fund but also reduces the stress of playing catch-up as you get older. The following are reasons why it makes sense to begin today:
The Cost of Waiting
Putting off saving for retirement could lead to a significant impact on the savings you’ll have when you reach retirement age. The main reason is compound interest—the financial principle where your investments generate earnings, and those returns, then, earn even more returns. The longer your money has to grow, the greater the effect of this growth.
Example: Alex and Taylor are both self-employed individuals. They each aim 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 contributes $7,500 annually to catch up.
By age 65, using a projected 7% annual return:
- Alex invests $180,000 and accumulates $691,184.39*.
- Taylor contributes $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Even modest contributions invested steadily may result in significant growth. Take a look at this scenario showing the effect of compounding:
- Starting at age 25: If you invest $200 per month in a retirement plan with an projected return of 7%, you’ll end up with $497,303.29* by age 65.
- Starting at age 35: Saving the same $200 per month would result in only $235,412.97* by age 65—a difference of over $260,000, simply due to a 10-year delay.
The earlier you begin, the less you need to save each year to meet your retirement goals.
*The numbers shown in this scenario represent 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 for illustrative purposes only and do not guarantee future performance. Your individual results may differ based on variables including market conditions, fees, and personal factors. Be sure to speak with a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
For self-employed individuals in Tulsa, OK, it might seem easier to put more emphasis on reinvesting in your business instead of saving for retirement. That said, beginning a plan now gives you the chance to:
- Leverage growth that is tax-deferred or withdrawals without taxes down the road.
- Benefit from contribution flexibility that adapt to your earnings.
- Establish a safety net that offers peace of mind, no matter how your business develops.
Starting early, the less you’ll have to worry about catching up later in life. Taking steps toward your retirement goals today means taking control of your financial future and allowing yourself the opportunity to focus on your goals—both for your golden years and your Tulsa, OK business.
Types of Self-Employed Retirement Plans
There are several retirement savings options designed for those working for themselves in Tulsa, OK, each with its own benefits and trade-offs. A financial advisor can help you learn about the advantages and disadvantages of each option and choose the one most suitable for your circumstances. In most cases, your self-employed retirement plan options in Tulsa, OK consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are retirement savings vehicles that include distinct tax benefits. In a standard IRA, contributions are typically tax-deductible, and investment earnings grow tax-deferred, but retirement distributions are subject to income tax. In contrast, with Roth IRAs, you contribute are made with after-tax income, but retirement withdrawals that qualify, including earnings, are not taxed. In both types of accounts, withdrawals are penalty-free as long as you are at least 59½.
Eligibility: Unlike 401(k)s, which are employer-sponsored, traditional and Roth IRAs are open to those 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: SEP IRAs serves as a retirement savings option that allows entrepreneurs to save a percentage of their net business profits. Contributions are strictly employer contributions an employer, so, as a independent business owner, you (the employee) cannot make additional contributions more than 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 may choose to contribute a flat-dollar amount or a percentage of wages to employee accounts. This type of plan works well for entrepreneurs facing cycles of high revenue and low revenue. Unlike other plans, SEP IRAs lack costly startup or administrative fees.
SEPs function like traditional IRAs, where contributions are made with pre-tax money and withdrawals are taxed as income.
Eligibility: Both employers and 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 allowable contribution 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 intended for companies that have no employees or where the only employee is a spouse. These plans function similarly to 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 compared to SEPs or IRAs; however, the extra savings options 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: Only 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:
- Employee contributions of up to 100% of your earned income from self-employment, subject to the annual contribution limit. In 2025, those limits are $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) cannot exceed 25% of your adjusted self-employment income, which is your net profit minus half of your self-employment tax and the deferrals you made.
The total contribution cannot exceed $70,000, or $77,500 if you're over age 50 (in 2025), $81,250 if you attain age 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan offers a structured retirement solution that delivers a set amount to business owners 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 ideal for wealthier self-employed individuals who aim to accumulate a large amount for retirement and are prepared to contribute substantial contributions. Contributions are tax deferred, and withdrawals incur taxes as income in retirement.
Eligibility: Self-employed professionals running an owner-only business or employing fewer than five people may establish an individual defined benefit plan, but it's generally suggested for those over 50 who earn at least $250,000 a year. Generally, good candidates for defined benefit plans include:
- Entrepreneurs who aim to deposit more than $70,000 (or $77,500 if over age 50)
- Organizations that already put in 3-4% but are open to increasing contributions
- Businesses that have demonstrated consistent profit patterns
- Entrepreneurs over age 40 who wish to accelerate savings or boost savings within a short timeframe
Contribution Limits: The maximum allowable contribution is calculated by an actuary based on your financial situation, age, and savings targets. Limits on contributions are adjusted each year.
The Importance of a Financial Advisor in Tulsa, OK for Your Self-Employed Retirement Plan
Partnering with an advisor in Tulsa, OK focused on self-employed retirement strategies serves as an essential partner for those working for themselves. They have the expertise to help understand the intricacies of saving for retirement and design a customized plan that aligns with your goals. An expert in your area will review your finances, understand your risk tolerance, and help you in choosing wisely about saving and investing for retirement. Part of what we do for you features:
- Guide you in choosing a plan that best fits your needs and goals
- Further adapt the plan to your needs even further
- Formalize a plan in writing that complies with IRS regulations
- Arrange a trust plan for assets
- Make sure you understand the plan's terms
- Track and fine-tune your plan when necessary
- Provide ongoing education and advice as you continue on the road to retirement
- Increase your retirement income by maximizing your social security benefits
Self-Employed Retirement Plans in Tulsa, OK: Correct Capital's Process
Self-employed individuals in Tulsa, OK who don’t have the time or expertise to manage their retirement savings strategy independently can become overwhelmed as they look at their choices. At Correct Capital, our Tulsa, OK financial advisors handle the bulk of your savings plan setup for you, working to make meeting your retirement goals as straightforward as possible for you. We are here to assist you in setting 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 our services align for you and your business. This initial call lets us understand what you're looking for with no pressure 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 enables us to craft a tailored approach suited specifically for your needs.
- Review Your Plan: After we put together a plan using the information you provide, we'll sit down with you and review your plan thoroughly to help you fully grasp it and explain its fit to your circumstances.
- Implementation and Monitoring: Once we've agreed on your plan, we'll put everything in place so you can initiate your savings journey. As time goes on, we'll have regular meetings and review your strategy to keep it tailored to your evolving circumstances.
Our Tulsa, OK financial advisors and retirement plan consultants serve as fiduciary advisors, who are obligated to they are committed by law and ethics to act in your best interest.
Other financial advisory services we offer in Tulsa, OK 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 Tulsa, OK
To you, your business is more than "just a business", and your Tulsa, OK financial advisors should provide more than basic financial recommendations. At Correct Capital, we focus on building a relationship with our clients and their businesses to create tailored self-employed retirement plans. All our clients in Tulsa, OK benefit from our I.O.U. promise: everything we recommend will be independent, objective, and unbiased. To begin on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.
