SEP IRAs allow employers to make contributions towards employees’ retirement plans without the common hassles of more intricate plan types.
Simplified Employee Pension Plans (SEP IRA) are low-cost, easy plans utilized by the self-employed, partners, and owners of corporations.
SEP IRAs allow employers and employees, if any, to make contributions to individual, traditional IRAs owned by the employees, established at institutions of their choice. All employees must receive the same benefits, and are taxed at ordinary income tax rates when distributions are taken after the participant reaches the age of 59 ½ years. (Please note: A self-employed individual is considered an employee as well as an employer and contributions limits are somewhat complicated. Seek appropriate counsel when determining contributions if you are self-employed.)
A SEP IRA does not impose the costs that many conventional plans do, and employers are able to contribute up to 25 percent of each employee’s pay on a tax-deductible basis. A self-directed SEP IRA or real estate SEP IRA with Advanta IRA allows you and your employees the flexibility to self-direct retirement funds into real estate, mortgages and other alternative investments.
Consider a self-directed SEP IRA if:
- You are a sole proprietor, independent contractor, self-employed, partner, corporation, or S corporation.
- You do not want to be locked into making contributions every year.
- You would like a plan with low administrative costs.
- You are looking for a wider range of investment choices including stocks, bonds, mutual funds, real estate, notes, LLCs and more.
|SEP IRA||Up to $54,000 (25% of compensation)||Up to $55,000 (25% of compensation)|