A Simplified Employee Pension plan, or SEP, allows employers to contribute to their employees’ retirement. These individual retirement accounts (IRA) are tailored for employees’ retirement funds while employers reap a SEP IRA plan’s tax deductions compared to other retirement plans. SEP IRA plans are also available for self-employed individuals, freelancers, and small business owners.
Employers must contribute directly to an IRA set up for each employee, specifically a Self-Directed SEP IRA. Here are some of the key points of a SEP IRA:
A SEP IRA plan has low costs, with the choice of if and how much employers will contribute.
Contributions are tax-deductible in a Self-Directed SEP IRA plan.
SEP IRAs do not have the operating and start-up costs that most conventional employer plans do.
You can make tax-deductible contributions of up to 25% of each employee’s compensation. Bonus: If you are self-employed, you are considered an employee!
Gain the freedom of choice with a Self-Directed SEP IRA plan.
If you are self-employed, you are considered an employee and can create a SEP Self-Directed IRA plan.
You do not have to contribute the same amount each year!
You can self-direct a SEP IRA plan. Invest in assets such as real estate, private lending, limited liability companies, precious metals, and much more!