Self-employed retirement plans Virginia Beach, VA. The flexibility of owning your own business in Virginia Beach, VA offers many benefits of being self-employed. Even so, this freedom often comes with certain challenges, particularly when it comes to 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 would be better off looking into other possibilities. In addition to achieving a more comfortable retirement, seeking advice from a financial advisor in Virginia Beach, VA to set up your self-employed retirement plan offers significant tax advantages that allow both you and your business to thrive.
Few Virginia Beach, VA 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 (learn more about our story here), and Correct Capital are deeply experienced in assisting business owners in their retirement planning needs. We recognize that your business and retirement aspirations go far beyond basic numbers, and we work tirelessly to offer personalized solutions aligned with your vision. Continue exploring to find out about your self-employed retirement plan options in Virginia Beach, VA, or reach out to Correct Capital at 877-930-401k or contact us online to talk to a small business financial advisor in Virginia Beach, VA today.
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Why Virginia Beach, VA Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals are essential for preparing you for the future, they also deliver tangible benefits today. With customizable contribution options to substantial tax savings, consulting a financial advisor in Virginia Beach, VA enables you to customize your retirement plan to align with your specific needs.
Flexibility That Fits Your Income
If your income changes from year to year, a plan like a SEP IRA or Solo 401(k) gives you the option to modify how much you save:
- Customizable Contributions: Save extra during high-income years and reduce savings when revenues are down, so that your plan works with your financial situation.
- Roth Options: Choosing a Roth Solo 401(k) lets you settle taxes at the time of contribution, enabling you to withdraw your savings tax-free down the road—a smart decision if you believe your tax rate is likely to rise in the future.
Save Money on Taxes
Retirement plans for self-employed individuals provide powerful tax benefits:
- Tax-Deductible Contributions: Contributions to a Solo 401(k) lower your taxable income, so you can keep more of your hard-earned money.
- Tax-Deferred Growth: Investments grow tax-free until withdrawal, which gives your money more time to compound.
- State-Specific Incentives: Depending on where you live, you might access extra tax breaks as a self-employed individual. These state-level incentives help make these plans even more advantageous.
- Retirement Savings Contributions Credit (Saver’s Credit): Those who meet the requirements can take advantage of 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 isn’t only about how much you save—it’s also linked to the way you invest:
- Diversified Portfolios: Allocating your investments across different stocks, bonds, and alternatives can help mitigate financial risk while still growing your nest egg.
- 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 Virginia Beach, VA Business
Retirement planning enables you to prepare for what’s next with your Virginia Beach, VA 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 accounts offer the financial stability you’ll need later on. Keep in mind that while selling a business often leads to a capital gain, retirement plan contributions are restricted by contribution limits (e.g., up to $7,000 for IRAs or up to $70,000 for Solo 401(k)s, including catch-up contributions, based on plan compensation).
- Minimizing Taxes: Making the most of retirement savings helps lower the taxes you’ll owe when you transfer your business.
- Succession Planning: For those winding down or handing over their business, your nest egg offer financial security during the change. You might want to partner with a financial advisor with expertise in succession and retirement planning to reduce taxes during the sale.
With the proper savings strategy, you gain control over your financial future, reduce your tax burden, and create a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Virginia Beach, VA Now?
There’s no denying that time is one of the most valuable resources when it comes to saving for retirement. Beginning sooner rather than later not only allows you to build a more substantial retirement fund but also lowers the pressure of playing catch-up as you get older. The following are reasons why it pays to take action now:
The Cost of Waiting
Putting off saving for retirement could lead to a significant impact on the savings you’ll have when you stop working. The primary reason is compound interest—the financial principle where your investments grow, 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 entrepreneurs. Their shared goal is 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 make up for lost time.
By age 65, assuming 7% annual return:
- Alex puts in $180,000 and ends up with $691,184.39*.
- Taylor puts in $195,500 but achieves a total of only $474,367.78*.
How Early Contributions Grow
Small, consistent savings invested steadily can lead to substantial growth. Consider this example showing the impact of compound interest:
- Starting at age 25: Putting aside $200 per month in a retirement plan with an average annual return of 7%, you’ll grow to approximately $497,303.29* by age 65.
- Starting at age 35: Contributing the same $200 per month would result in only $235,412.97* by age 65—a gap of over $260,000, just from a 10-year delay.
The earlier you begin, the lower your annual savings needs each year to meet your retirement goals.
*The numbers shown in this scenario represent estimates generated with NerdWallet’s Compound Interest Calculator, with the assumption of a 7% annual return. These calculations involved multiplying yearly deposits by the years contributed. The scenarios provided are meant to provide general guidance and cannot predict actual future outcomes. Your individual results may differ depending on elements like market conditions, fees, and your unique situation. Be sure to speak with a financial advisor for custom recommendations.
Take Control of Your Financial Future
For self-employed individuals in Virginia Beach, VA, it might seem easier to put more emphasis on reinvesting in your business rather than saving for retirement. Even so, beginning a plan now allows you to:
- Leverage tax-free future growth or tax-free withdrawals down the road.
- Enjoy contribution flexibility that change with your income.
- Build a safety net that ensures stability, no matter how your business evolves.
Getting started now, the less you’ll need to worry about catching up later in life. Building your retirement savings today means managing your financial future and allowing yourself the opportunity to turn your attention to your goals—both for your retirement years and your Virginia Beach, VA business.
Types of Self-Employed Retirement Plans
Multiple retirement savings options available for those working for themselves in Virginia Beach, VA, each providing its own benefits and trade-offs. A financial advisor can help you understand the benefits and drawbacks of each option and choose the one most suitable for your needs. In most cases, your self-employed retirement plan options in Virginia Beach, VA are:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent financial tools for retirement that provide key tax perks. In a standard IRA, contributions are typically tax-deductible, and returns grow free of current taxes, but withdrawals in 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 types of accounts, withdrawals don’t incur penalties provided you are at least 59½.
Eligibility: Unlike plans linked to your job, traditional and Roth IRAs are open to those with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 for those aged 50+.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: SEP IRAs offers a way to save for retirement that allows self-employed individuals to set aside a portion of their self-employment income. Contributions are strictly employer contributions an employer, so, as a sole proprietor, you (the employee) are limited to contributions from the employer role 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. It's your choice whether 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. Unlike other plans, SEP IRAs don’t have expensive setup or ongoing fees.
SEPs work like standard IRAs, where you contribute pre-tax dollars and withdrawals are taxed as income.
Eligibility: Any employer, including the self-employed 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, also called an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan designed for companies that have no employees or where the only employee is a spouse. These plans operate much like 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 than SEPs or IRAs; however, the extra savings options can be balanced by more limited investment options. Using a solo 401(k), you can make either traditional or Roth deferrals, which have the same tax benefits as their IRA contribution counterparts.
Eligibility: Solo 401(k)s are available solely to business owners and their spouses can set up and contribute to a solo 401(k).
Contribution Limits: If you are self-employed with a solo 401(k) plan, you are allowed to make two types of contributions:
- Employee contributions of up to 100% of your self-employed earnings, capped at the annual contribution limit. In 2025, those limits are $23,500, or $31,000 if you're over 50, or $34,750 for those who turn 60-63 in 2025.
- Profit-sharing contributions (as an employer) cannot exceed 25% of your net self-employment income, which is calculated as net profits less half of your self-employment tax and the employee contributions you made.
Your combined contributions must not surpass $70,000, or $77,500 if you're over age 50 (in 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 self-employed individuals upon retirement. In contrast to the plans discussed earlier, investment returns don’t affect the payout, but lets individuals clearly understand the precise amount they'll get in retirement. This option is best suited for high-earning entrepreneurs who want to save a substantial amount for retirement and are prepared to contribute larger deposits. Contributions offer tax-deferred growth, and withdrawals are taxable as income upon 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 advised for those over 50 who earn at least $250,000 a year. Generally, good candidates for defined benefit plans include:
- Entrepreneurs who want to invest more than $70,000 (or $77,500 if over age 50)
- Companies already contributing 3-4% but are open to increasing contributions
- Organizations with proven consistent profit patterns
- Entrepreneurs over age 40 who desire to "catch up" or accelerate the retirement savings
Contribution Limits: The cap on contributions is calculated by an actuary determined by your financial situation, age, and savings targets. Contribution limits are updated yearly.
The Importance of a Financial Advisor in Virginia Beach, VA for Your Self-Employed Retirement Plan
Working with a financial advisor in Virginia Beach, VA experienced with retirement plans for the self-employed is an essential partner for those working for themselves. They bring the skills needed to understand the intricacies of saving for retirement and develop a tailored strategy that aligns with your goals. A financial advisor in Virginia Beach, VA 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:
- Assist in selecting a plan that best fits your needs and goals
- Tailor the plan to your needs even further
- Create a written plan as required by IRS rules
- Organize a trust plan to manage your 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
- Maximize what you receive in retirement by optimizing your social security benefits
Self-Employed Retirement Plans in Virginia Beach, VA: Correct Capital's Process
Virginia Beach, VA business owners who don’t have the time or expertise to oversee their own retirement planning themselves often feel overwhelmed when faced with their available plans. With Correct Capital, our Virginia Beach, VA financial advisors handle the lion's share of your savings plan setup for you, to help make meeting your retirement goals 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: A quick 20-minute call is all it takes, a member of our advisor team can determine if we're a good fit for you and your business. This brief introduction helps us learn about your needs with zero commitment or major time investment on your part.
- Gather Information: If we both decide to move forward, we'll gather information, including how many employees you have (if any), your existing financial picture, and your long-term savings targets. This helps us create a custom plan designed just for you.
- Review Your Plan: After we put together a plan based on the information you provide, we'll sit down with you and discuss your plan in detail to help you fully grasp it and explain its fit to your circumstances.
- Implementation and Monitoring: When we finalize on your plan, we'll implement the necessary steps so you can start saving. Throughout our relationship, we'll check in and track your progress to keep it tailored to your evolving circumstances.
Our Virginia Beach, VA financial advisors and retirement plan consultants serve as fiduciary advisors, who are obligated to they are committed by law and ethics to do what's in your best interest.
Other financial advisory services we offer in Virginia Beach, VA 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 Virginia Beach, VA
You don't see your business as "just a business", and your Virginia Beach, VA financial advisors must deliver more than just good financial guidance. Correct Capital takes pride in, we make it a priority to understand our clients and their businesses to provide personalized self-employed retirement plans. All our clients in Virginia Beach, VA benefit from our I.O.U. promise: all of the advice you get from us 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.
