Self-employed retirement plans Tulsa, OK. The independence of running your own company in Tulsa, OK offers many benefits of being self-employed. That said, this flexibility can come with a lack of security, particularly regarding building your retirement fund, because you don't have the option of retirement programs through an employer. Only 13% of self-employed individuals have a workplace retirement plan, but many should consider looking into other possibilities. In addition to enjoying a more comfortable retirement, partnering with a financial advisor in Tulsa, OK to set up your self-employed retirement plan offers significant tax advantages that help your business to grow and succeed.
Few Tulsa, OK investment consulting and retirement planning firms are as attuned to the requirements of small business owners quite like Correct Capital. The father of our founder was a small business owner himself (read more of our story here), and we are deeply experienced in assisting business owners in their retirement planning needs. We recognize that your professional and personal aspirations extend well past just monetary concerns, and we work tirelessly to offer customized solutions that reflect your objectives. Read on to discover about your self-employed retirement plan options in Tulsa, OK, or call Correct Capital at 877-930-401k or contact us online to speak with a self-employed 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 are essential for preparing you for the future, they also provide tangible benefits today. From flexible contributions to substantial tax savings, consulting a financial advisor in Tulsa, OK allows you to create your retirement plan to suit your specific needs.
Flexibility That Fits Your Income
When your earnings vary from year to year, a plan like a SEP IRA or Solo 401(k) gives you the freedom to adjust how much you save:
- Customizable Contributions: Set aside more during high-income years and scale back when revenues are down, so your plan aligns with your financial situation.
- Roth Options: A Roth Solo 401(k) lets you settle taxes at the time of contribution, enabling you to withdraw tax-free later—a wise move if you believe your tax rate to be higher in the future.
Save Money on Taxes
Retirement plans for self-employed individuals offer significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SIMPLE IRA shrink your tax liability, so you can keep more of your hard-earned money.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, which gives your money more time to compound.
- State-Specific Incentives: In some states, you may be eligible for extra tax breaks as a self-employed individual. These regional incentives make these plans even more advantageous.
- Retirement Savings Contributions Credit (Saver’s Credit): Qualified participants can claim a tax 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
Creating a stable future requires more than how much you save—it’s also determined by your investment strategy:
- Diversified Portfolios: Spreading your investments across varied stocks, bonds, and other assets is a smart way to minimize exposure to risk while continuing to build your savings.
- Emergency Back-Up: Pairing your retirement plan with a financial buffer for your business helps you avoid tapping into your nest egg during challenging periods and risking extra costs.
Plan for the Future of Your Tulsa, OK Business
Retirement planning can assist you prepare for what’s next with your Tulsa, OK business:
- Selling Your Business: For those considering a sale, retirement accounts like SEP IRAs and Solo 401(k)s remain yours and are not part of the sale. These accounts offer the financial stability you’ll need later on. Remember that while selling a business often leads to a capital gain, deposits into these plans are subject to yearly maximums (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: 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 financial security during the change. You might want to work with a financial advisor experienced in both succession and retirement strategies to minimize tax burdens on the sale.
With the best-fit retirement strategy, you gain control over your financial future, reduce your tax burden, and establish a strong framework for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Tulsa, OK Now?
Time remains one of the most valuable assets in retirement planning. Beginning sooner rather than later not only helps you grow a more substantial retirement fund but also minimizes the pressure of playing catch-up as you get older. The following are reasons why it is beneficial to start now:
The Cost of Waiting
Putting off saving for retirement can have a significant impact on the total you’ll have when you retire. The biggest reason is compound interest—the financial principle where your investments generate earnings, and those returns, then, generate even more returns. The greater time span your money has to grow, the more significant the impact of compounding.
Example: Two individuals, Alex and Taylor 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 puts away $7,500 annually to make up for lost time.
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 accumulates just $474,367.78*.
How Early Contributions Grow
Regular, modest investments made consistently may result in impressive growth. Here’s a simple scenario showing the power of compounding:
- Starting at age 25: Putting aside $200 per month in a retirement plan with an expected yearly growth rate of 7%, you’ll accumulate $497,303.29* by age 65.
- Starting at age 35: Saving the same $200 per month leaves you with only $235,412.97* by age 65—a difference of over $260,000, simply due to a 10-year delay.
Saving early, the less you need to save each year to achieve your retirement goals.
*The numbers shown in this scenario represent 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 intended as illustrative examples and cannot predict actual future outcomes. Actual results may vary based on elements like market conditions, fees, and individual circumstances. Always consult a financial advisor for personalized advice.
Take Control of Your Financial Future
If you’re self-employed in Tulsa, OK, it might seem easier to prioritize reinvesting in your business instead of saving for retirement. That said, initiating a plan now allows you to:
- Leverage tax-deferred growth or penalty-free withdrawals in the future.
- Take advantage of flexible contributions that adapt to your income.
- Build a safety net that provides security, no matter how your business evolves.
Starting early, the less you’ll have to worry about making up for lost time later in life. Taking steps toward your retirement goals today means taking control of your financial future and giving yourself the opportunity to focus on your objectives—both for your future retirement and your Tulsa, OK business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options designed for self-employed individuals in Tulsa, OK, each with its own advantages and considerations. A financial advisor can help you understand the benefits and drawbacks of each option and choose the one most suitable for your needs. Generally speaking, your self-employed retirement plan options in Tulsa, OK are:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent financial tools for retirement that offer specific tax advantages. In a conventional IRA, the money you contribute is often 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 using income already taxed, but qualified withdrawals in retirement, including earnings, are tax-free. In both accounts, withdrawals are penalty-free as long as you are at least 59½.
Eligibility: Unlike plans linked to your job, IRAs, including traditional and Roth options 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: The Simplified Employee Pension IRA is a retirement plan that enables entrepreneurs to contribute a percentage of their net earnings. Contributions are strictly employer contributions an employer, so, as a independent business owner, you (the employee) cannot make additional contributions above 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. You may choose to contribute a set monetary value or a percentage of wages to employee accounts. A SEP IRA works well for entrepreneurs facing cycles of high revenue and low revenue. Unlike other plans, SEP IRAs lack expensive setup or ongoing fees.
SEPs work like conventional IRAs, where contributions are made with pre-tax money and retirement distributions are taxable.
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
As a self-employed person, the contribution you can make is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, commonly known as an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan meant for businesses without employees or where the only employee is a spouse. These plans function similarly to standard 401(k) plans, and enable contributions as both the employer and the employee with pre-tax money. This offers more savings than SEPs or IRAs; however, the increased savings potential may be offset by more restricted investment choices. Using a solo 401(k), you can make either traditional or Roth deferrals, which share 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: If you are self-employed with a solo 401(k) plan, you can make two types of contributions:
- Deferrals as an employee of up to 100% of your self-employment income, capped at 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 those who turn 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 employee contributions 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: The defined benefit plan offers a structured retirement solution that guarantees a fixed, predetermined benefit to entrepreneurs upon retirement. In contrast to the plans discussed earlier, investment returns don’t affect the payout, but allows self-employed individuals to know exactly how much they'll get in retirement. This option is recommended for higher-income self-employed individuals who want to save a large amount for retirement and are prepared to contribute larger deposits. Contributions grow tax-free until withdrawal, and withdrawals are taxed as income in retirement.
Eligibility: Entrepreneurs running an owner-only business or with a small staff of under five can open an individual defined benefit plan, but it's typically suggested for those over 50 who earn at least $250,000 a year. In most cases, good candidates for defined benefit plans tend to be:
- Partners or owners who want to invest more than $70,000 (or $77,500 for individuals 50 and older)
- Organizations that already put in 3-4% with plans to contribute more
- Organizations showing consistent profit patterns
- Partners or owners over age 40 who aim to quickly build retirement savings or boost savings within a short timeframe
Contribution Limits: The maximum allowable contribution must be determined by an actuary using your earnings, age, and retirement objectives. Contribution limits change annually.
The Importance of a Financial Advisor in Tulsa, OK for Your Self-Employed Retirement Plan
Partnering with an advisor in Tulsa, OK specialized in self-employed retirement plans can be an essential partner for those working for themselves. They have the expertise to help navigate the complexities of retirement planning and craft a personalized approach that matches your objectives. A financial advisor in Tulsa, OK will assess where you stand financially, determine how much risk you’re comfortable with, and guide you in selecting the best options about saving and investing for retirement. Part of what we do for you includes:
- Guide you in choosing a plan that suits your unique requirements
- Customize the plan to your specific situation even further
- Create a written plan that complies with IRS regulations
- Arrange a trust plan for assets
- Make sure you understand the plan's terms
- Review and modify your plan when necessary
- Deliver continuous support and financial insights 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 handle their own retirement planning themselves may end up overwhelmed as they look at their choices. With Correct Capital, our Tulsa, OK financial advisors take on the majority of your savings plan setup for you, to help make meeting your future savings targets as hassle-free 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 we're a good fit for you and your business. This initial call lets us get a sense of your goals with no obligation or extensive time commitment on your part.
- Gather Information: Should we agree to proceed, we'll ask for information, including how many employees you have (if any), your existing financial picture, and your retirement goals. This allows us to put together a custom plan that aligns with your goals.
- Review Your Plan: When we finalize a plan from the information you provide, we'll sit down with you and go over your plan in detail to ensure you understand it and understand how it best correlates to your needs.
- Implementation and Monitoring: Once we've agreed on your plan, we'll put everything in place so you can start saving. Throughout our relationship, we'll have regular meetings and track your progress to ensure it stays suited to your needs.
Our Tulsa, OK financial advisors and retirement plan consultants are fiduciary advisors, who are obligated to they are required by law and ethical standards to do what's in your best interest.
Other financial advisory services we offer in Tulsa, OK include:
- Independent Financial Advisor
- Roth Conversion
- 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 Tulsa, OK
Your business isn't "just a business" to you, and your Tulsa, OK financial advisors should provide more than simply sound financial advice. With Correct Capital, we make it a priority to understand our clients and their businesses to provide tailored self-employed retirement plans. All our clients in Tulsa, OK benefit from our I.O.U. promise: all of the advice you get from us 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.
