SEP IRAs are a great retirement plan option if you're self-employed or own a small business with fewer than 100 employees. A self-directed SEP IRA is unique because it allows you to look beyond stocks and bonds and invest in alternative assets, such as real estate, precious metals, and more. A self-directed SEP IRA is a great way for self-employed people to set up a retirement account. Unlike a traditional SEP IRA, a self-directed SEP IRA allows people to diversify their retirement accounts by investing in alternative assets.
The decision to open a self-directed SEP IRA allows people to diversify their retirement accounts by investing in what they know. However, it's important to note that not all custodians of a self-directed SEP IRA allow people to purchase the same assets. Instead, some companies only allow people to buy cryptocurrency or precious metals. At IRA Financial, your self-directed SEP IRA allows you to invest in a wide range of diversified assets.
The purpose of any IRA is to accumulate tax-deferred or tax-exempt wealth. With a self-directed IRA, you can go one step further. You invest in what you know best and can diversify your portfolio with alternative investments that you understand and control. Either type of IRA can help you increase your wealth.
Even with smaller dollars, there are assets that can be acquired in your self-directed IRA. Choose and contribute to the IRA that best suits your needs. You have until the company's tax filing deadline (including extensions) to set up a SEP IRA account and contribute to it for you and your employees. So, for example, if you contributed 10% of the salary of all your employees, you wouldn't be able to contribute 20% of the salary to your personal SEP IRA or you would reduce your contribution to 10% or increase your employees to 20%.
It still has all the features of an SEP IRA, such as contribution limits, but you can now expand your investment opportunities. With a self-directed SEP IRA, you can invest beyond the traditional stock market, in more than just stocks, bonds, and mutual funds. SEPs, easy to set up and maintain, make saving for retirement hassle-free, plus the added benefit of much higher contribution limits, so you can save and invest more and more quickly. Basically, for the IRA transfer to be free of taxes and penalties, the IRA holder must not receive the IRA funds in a transfer.
There are several different types of IRAs that can be set up to purchase real estate or any other investment allowed by the IRS. Then, the new custodian will request the transfer of the assets from your SEP IRA to the existing IRA depositary. People can use their existing retirement accounts to fund their self-directed SEP IRA or Solo 401 (k) plans. Contact IRA Financial at 1-800-472-0646 or complete the form to learn more about opening a self-managed retirement account.
If your company has employees and you decide to make a contribution to the SEP plan for the year, you must make contributions for all employees who meet the eligibility requirements you selected for your plan. For example, if you have a single-member LLC where you are self-employed, an SEP IRA may be a valid option. The amount of the eligible cumulative distribution that is not earmarked for an IRA is generally included in your gross income. The deadline for establishing and contributing to an SEP IRA is the deadline for the employer's tax return, including extensions (as opposed to the usual deadline of April 15).