Self-Directed SEP IRA

Why Should People Consider a Self-Directed SEP IRA?

If you have looked into different retirement account options, your head may be spinning. Who is to say what you can have between a Traditional IRA, a Roth IRA, a 401(k) plan, and a SEP IRA? Which one is best? Which ones can you use in combination with others? And how do they all work together? It is all too confusing. To simplify things, we will focus on the Self-Directed SEP IRA: who can use it, and why they consider using it. Let us explore this one-of-a-kind retirement account.

If Your Company Has Fewer Than 100 Employees…

For many, a SEP IRA is a powerful way not only to invest in retirement, but to build a retirement plan for a business with fewer than 100 employees. SEP IRAs allow high contribution limits, which means that they are great for people with high incomes who want to maximize the amount they invest in retirement this year. And if you have a company with fewer than 100 employees, you can create the SEP IRA as a plan that every employee enjoys.

For many, a SEP IRA is an account for an entrepreneur, who acts as their own employer. But that is not to say a Self-Directed SEP IRA requires that you be a solo entrepreneur, either.

If You Want a Plan with Low Start-Up and Administration Costs…

What if you want something that’s low-maintenance, easy to contribute to, and the like? A SEP IRA is known as a Simplified Employee Pension IRA, which is what gives it its name. In other words, Simple is in the name. That is not a bad way to look at it. And when you work with an experienced Self-Directed IRA administration firm to help handle the paperwork, you will likely find that the start-up and administration costs are absolutely minimal. This is a great incentive to ensure that you put together a retirement plan that does not also eat into your retirement plan.

If You Want to Attract Employees…

Then you are probably going to need a retirement benefit of some sort. One of the most important reasons to use a Self-Directed SEP IRA at your company is that it can help you attract talent. After all, if they hear that you have a retirement plan, then if they have other options, that might swing things your way. Rather than avoiding the retirement incentive plan entirely, you can build a low-cost SEP IRA plan that provides your employees with powerful incentives to not only save, but to work for your company in the first place.

Another advantage of the SEP IRA? You can contribute to your employees’ retirement. Additionally, you will have the flexibility to decide how much you want to contribute, meaning that it is possible to create a SEP IRA plan that fits with just about any budget.

If You Do Not Have Any Other Retirement Plans…

Then the Self-Directed SEP IRA is probably one of the best ways to get started. However, we cannot tell you which is best. We recommend that you consult a tax professional to get an idea of the plan that suits your individual needs. It is important to make decisions with their advice; after all, a Self-Directed SEP IRA leaves you in charge to make the decisions. You will want to make sure that you make educated decisions with the help of a dedicated finance professional.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guides or visit us online at

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