SEP IRA – Simplified Employee Pension Plans

Simplified Employee Pension plans (SEP IRAs) may provide an easy, low-cost retirement plan option if you are self-employed, a partner or the owner of a corporation. With an IRA Innovations self- directed SEP, you can invest in what you know. When you choose a SEP retirement plan, you make contributions to a Traditional IRA for yourself and your employees, if applicable.

SEP Contribution Amounts

If you choose to contribute to your retirement plan, you have the ability to choose the percentage of contribution for any given year (0 – 25% of earned income) both for yourself and your staff. The only requirement is that the contribution percentage, in any year, be the same for each employee.

If you would like a self-directed SEP IRA and your current retirement plan does not allow self direction, you may transfer all or part of the funds to an IRA Innovations self-directed SEP IRA so that you may choose your own investments.

Keep in mind that the contributions you make to each employee’s SEP – IRA each year cannot exceed the lessor of: 25% of compensation, or $66,000.00 for 2023.

Funding A Self Directed SEP IRA

The most common technique to funding a self directed SEP IRA is through making a contribution to your account. You may also roll over or transfer funds from an existing employer plan, such as a 401k, a pension plan or another SEP IRA. If your current SEP IRA does not allow self-direction, you may also make an IRA Rollover or IRA transfer to an Entrust self directed SEP IRA so that you may choose your own investments.

An IRA Innovations self-directed SEP IRA does not have the start-up and operating costs of a conventional employer plan and allows for a tax-deductible contribution of up to 25 percent of each employee’s pay. And with a self directed SEP IRA or real estate SEP IRA, you and your employees can have the flexibility to self-direct your retirement funds into real estate, mortgages and other alternative investments. Also consider a self-directed SEP IRA if:

  • You are a sole proprietor, independent contractor, self-employed, partner, corporation, or S corporation.
  • Your business pays no taxes on investment earnings.
  • You don’t want to be locked into making contributions every year.
  • You would like a plan with low administrative costs.
  • You’re looking for a wider range of investment choices, including stocks, bonds, mutual funds, real estate, notes, LLCs and more.
Call IRA Innovations at (205) 985-0860 and get started on your self-directed IRA today.

We are never in conflict with your investment decisions because we do not endorse or sell any investment products.