Self-employed retirement plans Wichita, KS. The independence of being your own boss in Wichita, KS is one of the greatest advantages of having a self-directed career. That said, this independence often comes with potential drawbacks, notably when it comes to building your retirement fund, since 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 exploring their options. In addition to enjoying a more comfortable retirement, partnering with a financial advisor in Wichita, KS to create your self-employed retirement plan can provide significant tax advantages that enable you to move your business forward.
Few Wichita, KS financial advisory and retirement planning firms are as attuned to the requirements of entrepreneurs as well as Correct Capital. The father of our founder was a small business owner himself (learn more about our story here), and our firm take pride in assisting business owners in their retirement planning needs. We understand that your professional and personal aspirations go far beyond just monetary concerns, and we work tirelessly to provide tailored solutions aligned with your vision. Keep reading to learn more about your self-employed retirement plan options in Wichita, KS, or give us a call at Correct Capital at 877-930-401k or contact us online to consult with a self-employed financial advisor in Wichita, KS today.
Why Wichita, KS 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 Wichita, KS helps you customize your retirement plan to fit your individual circumstances.
Flexibility That Fits Your Income
For those with fluctuating income over time, a plan like a SEP IRA or Solo 401(k) offers the freedom to modify how much you save:
- Customizable Contributions: Set aside more during high-income years and cut back when income is lower, so your plan fits your financial situation.
- Roth Options: Choosing a Roth Solo 401(k) lets you pay taxes on contributions now, enabling you to withdraw without tax penalties in the future—a smart decision if you expect your tax rate to be higher in the future.
Save Money on Taxes
Self-employed retirement plans offer valuable tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA lower your taxable income, so you can keep more of your earnings.
- 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 self-employed individual. These local incentives make these plans even more beneficial.
- Retirement Savings Contributions Credit (Saver’s Credit): Eligible individuals 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
Planning for a safe retirement goes beyond just how much you save—it’s also about how you invest:
- Diversified Portfolios: Allocating your investments across varied stocks, bonds, and other assets can help minimize exposure to risk while continuing to build your nest egg.
- Emergency Back-Up: Combining your retirement strategy and a dedicated business safety net ensures you don’t using your retirement funds during financial hardships and facing tax penalties.
Plan for the Future of Your Wichita, KS Business
A thoughtful retirement strategy enables you to think through what’s next with your Wichita, KS business:
- Selling Your Business: For those considering a sale, retirement accounts like SEP IRAs and Solo 401(k)s stay in your name and are not part of the sale. These accounts offer the steady income you’ll need during retirement. It’s important to note that while selling a business often leads to a capital gain, deposits into these plans are subject to yearly maximums (e.g., as much as $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, with catch-up contributions, based on plan compensation).
- Minimizing Taxes: Using retirement contributions wisely helps lower the taxes you might face when you pass on your business.
- Succession Planning: For those winding down or handing over their business, your retirement savings offer a stable foundation through the transition. You might want to work with a financial advisor who specializes in succession planning and retirement accounts to reduce taxes on the sale.
With the right retirement plan, you gain control over your financial future, lower your tax bill, and create a solid base for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Wichita, KS Now?
There’s no denying that time is one of the most valuable factors in retirement planning. Starting early not only allows you to build a larger nest egg but also minimizes the financial burden of catching up later in life. The following are reasons why it is beneficial to start now:
The Cost of Waiting
Delaying your retirement savings can have a substantial impact on the savings you’ll have when you stop working. The primary reason is compound interest—the concept where your investments earn returns, and those returns, subsequently, earn even more returns. The longer your money has to grow, the larger the benefit of compounding.
Example: Taylor and Alex are both entrepreneurs. They each aim 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 saves $7,500 annually to make up for lost time.
By age 65, using a projected 7% annual return:
- Alex invests $180,000 and accumulates $691,184.39*.
- Taylor contributes $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Regular, modest investments made consistently may result in impressive growth. Consider this example showing the effect of consistent growth:
- Starting at age 25: By investing $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: Investing the same $200 per month leaves you with only $235,412.97* by age 65—a gap of over $260,000, just from a 10-year delay.
Starting sooner, the less you need to save each year to achieve your retirement goals.
*The figures provided in this example represent estimates derived from NerdWallet’s Compound Interest Calculator, with the assumption of a 7% annual return. The contributions were calculated by multiplying the annual deposit amount by the total number of years contributions were made. This information is intended as illustrative examples and cannot predict actual future outcomes. Your individual results may differ depending on elements like market conditions, fees, and personal factors. We recommend consulting a financial advisor for custom recommendations.
Take Control of Your Financial Future
For self-employed individuals in Wichita, KS, it can be tempting to prioritize reinvesting in your business instead of saving for retirement. However, beginning a plan now enables you to:
- Leverage tax-deferred growth or withdrawals without taxes in the future.
- Benefit from adjustable savings that adapt to your cash flow.
- Create a safety net that provides security, no matter how your business changes.
Getting started now, the less you’ll be required to worry about catching up later in life. Taking steps toward your retirement goals today means managing your financial future and creating for yourself the ability to concentrate on your objectives—both for your future retirement and your Wichita, KS business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options open for entrepreneurs in Wichita, KS, each with its own advantages and considerations. A financial advisor can help you understand the pros and cons of each plan and identify the one most suitable for your unique situation. In most cases, your self-employed retirement plan options in Wichita, KS consist of:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Accounts, are long-term savings plans that include key tax perks. In a traditional IRA, you can usually deduct your contributions from taxable income, and investment earnings grow tax-deferred, but retirement distributions are taxed as income. In contrast, Roth IRAs require contributions from post-tax earnings, but eligible distributions during retirement, including earnings, are tax-free. In both accounts, withdrawals don’t incur penalties if you are at least 59½.
Eligibility: Unlike plans linked to your job, IRAs, including traditional and Roth options are accessible for individuals with a source of income.
Contribution Limits: For 2025, annual contribution limits for IRAs are capped at $7,000, or $8,000 if you're 50 or older.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA serves as a retirement savings option that permits entrepreneurs to save a percentage of their net business profits. Contributions are strictly employer contributions an employer, so, as a self-employed individual, 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 have the flexibility to contribute a fixed dollar figure or a percentage of wages to employee accounts. SEP IRAs works well for entrepreneurs facing cycles of high revenue and low revenue. In contrast to some alternatives, SEP IRAs don’t have expensive setup or ongoing fees.
SEPs work like conventional IRAs, where the contributions are tax-deferred and withdrawals are taxed as income.
Eligibility: Any employer, including the self-employed can establish 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 allowable contribution is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, sometimes referred to as 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. Solo 401(k)s are similar to employer-sponsored 401(k) plans, and let you make contributions as both the employer and the employee with pre-tax money. This offers more savings compared to SEPs or IRAs; however, the increased savings potential may be offset by more constrained investment avenues. With this type of plan, you can make either traditional or Roth deferrals, which share the same tax benefits as their IRA contribution counterparts.
Eligibility: Only business owners and their spouses are eligible to open and contribute to a solo 401(k).
Contribution Limits: As a self-employed individual with a solo 401(k) plan, you have the ability to make two types of contributions:
- Deferrals as an employee 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 those who turn 60-63 in 2025.
- Employer profit-sharing contributions (as an employer) must not surpass 25% of your net self-employment income, 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 (as of 2025), $81,250 if you attain age 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: The defined benefit plan offers a structured retirement solution that provides a pre-established payout to self-employed individuals upon retirement. Unlike defined contribution plans mentioned above, investment returns don’t affect the payout, but enables participants to determine what they'll have in retirement. This strategy is ideal for wealthier professionals who want to save a substantial amount for retirement and are willing to make larger deposits. Contributions offer tax-deferred growth, and withdrawals incur taxes as income upon retirement.
Eligibility: Entrepreneurs operating a solo business or with a small staff of under five may establish an individual defined benefit plan, but it's typically recommended for people above age 50 who make $250,000 or more annually. Generally, good candidates for defined benefit plans include:
- Partners or owners who aim to deposit more than $70,000 (or $77,500 if over age 50)
- Organizations that already put in 3-4% and are willing to do more
- Companies that have demonstrated consistent profit patterns
- Entrepreneurs over age 40 who wish to accelerate savings or increase their retirement contributions rapidly
Contribution Limits: The contribution limit is calculated by an actuary based on your financial situation, age, and savings targets. Limits on contributions are updated yearly.
The Importance of a Financial Advisor in Wichita, KS for Your Self-Employed Retirement Plan
Working with a financial advisor in Wichita, KS experienced with retirement plans for the self-employed serves as an important asset for entrepreneurs. They have the expertise to help understand the intricacies of saving for retirement and develop a customized plan that matches your objectives. A financial advisor in Wichita, KS will assess where you stand financially, identify your risk preferences, 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 suits your unique requirements
- Further adapt the plan to your specific situation even further
- Adopt a written plan that complies with IRS regulations
- Arrange a trust plan for assets
- Help you understand the plan's terms
- Monitor and adjust your plan as needed
- Deliver continuous support and financial insights to help you navigate your retirement journey
- Boost your retirement earnings by optimizing your social security benefits
Self-Employed Retirement Plans in Wichita, KS: Correct Capital's Process
Self-employed individuals in Wichita, KS who aren’t equipped with the time or understanding to manage their retirement savings strategy on their own can become overwhelmed when faced with their options. Through our team at Correct Capital, our Wichita, KS financial advisors handle the majority of your retirement planning for you, and strive to ensure 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 a quick, four-step process:
- Schedule a Call: In just 20 minutes, a member of our advisor team can help understand if our services align for you and your business. This brief introduction lets us get a sense of your goals with no obligation or major time investment on your part.
- Gather Information: Once we mutually decide to continue, we'll ask for information, including your employee count, your existing financial picture, and your long-term savings targets. This enables us to craft a tailored approach designed just for you.
- Review Your Plan: After we put together a plan based on the information you provide, we'll meet with you and discuss your plan step by step to help you fully grasp it and show how it aligns with your goals.
- Implementation and Monitoring: When we finalize on your plan, we'll implement the necessary steps so you can initiate your savings journey. As time goes on, we'll have regular meetings and monitor your plan to ensure it stays suited to your needs.
Our Wichita, KS financial advisors and retirement plan consultants serve as fiduciary advisors, meaning they are legally and ethically bound to do what's in your best interest.
Other financial advisory services we offer in Wichita, KS include:
- 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 Wichita, KS
Your business isn't "just a business" to you, and your Wichita, KS financial advisors must deliver more than just good financial guidance. At Correct Capital, we make it a priority to understand our clients and their businesses to create tailored self-employed retirement plans. All our clients in Wichita, KS benefit from our I.O.U. promise: everything we recommend will be independent, objective, and unbiased. To get started on your self-employment retirement plan, call Correct Capital today at 877-930-401k or contact us online.
