A Simplified Employee Pension (SEP) plan provides employers with a way to make contributions to their employees’ retirement. Contributions must be made directly to an IRA that is set up for each employee, specifically a Self-Directed SEP IRA.

 A SEP IRA plan has Low Costs.

 SEP IRAs do not have the operating and start-up costs that most conventional employer plans do.
Contributions are tax-deductible in a Self-Directed SEP IRA plan.

 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!

 Freedom of Choice with a Self-Directed SEP IRA plan

 You do not have to contribute the same amount each year.

 You can self-direct a SEP IRA plan. Use your Self-Directed SEP IRA to invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals, and much more!

 You want the freedom to choose whether or not you make contributions each year.

You want a plan with low start-up and operating costs.

You’re looking to add a valuable plan to your benefits package to attract quality employees.

You want to contribute to your employees’ retirement and yet you want the flexibility to decide how much you contribute.

You are a sole proprietor, independent contractor, self-employed, partner, or corporation.

An employee is eligible for a SEP if:

 Have reached age 21.

 Have worked for you at least 3 of the last 5 years.

 Have received at least $650 in compensation from you in 2022. This amount will increase to $750 for 2023.

An employer can exclude an employee from the plan if:

 They are covered by a union agreement and their retirement benefits were bargained for in good faith by their union and you.

 They are non-resident alien employees who have received no U.S. source wages, salaries, or other personal services compensation from you.