tagline

Self Directed SEP IRA

Self Directed SEP IRA

If you are Self-Employed, the IRS has a deal for you; High Contribution IRA Accounts! Unlike the typical $5,500 or $6,500 annual limit allowed for regular IRA’s, a SEP IRA allows annual contribution limits of $52,00.

Or, have you considered starting a 401(k) plan for your business? You may want to consider a SEP or Simple IRA instead. These IRA plans are much easier and lower in cost to maintain. Both SEP and the Simple IRA work best for the individual with NO employees. If you ever add an employee in the future, making the contributions is a snap. And adding an employee to a SEP or Simple IRA requires no additional IRS filing.

SEP IRA:

  • You may Self Direct all of the investments
  • It is easy to add an employee
  • The annual contribution date is the same as a regular IRA
  • Annual contribution limit: any amount up to 25% of your business earnings (not to exceed $53,000)

Simple IRA:

  • You may Self Direct all of the investments
  • It is easy to add an employee
  • The annual contribution date is the same as a regular IRA
  • Annual contribution limit: any amount up to 100% of your business earnings (not to exceed $12,000)

Which one should I choose?

The key question is: How large do you expect your business to grow? If this is a side business that you expect will earn $48,000 or less per year, the Simple will allow the larger contribution. If you expect the business to earn more than $48,000, you should consider a SEP IRA which allows larger tax deferred contribution.

This year my business earned $700,000. My spouse and I are the only employees. How much can we contribute to our SEP IRAs?

You can max out the contributions! It will be about $53,000 for you and $53,000 for your spouse. Total about $106,000 and it is all deductible from this year’s earnings.

 

 

Want More Information?

For more information on Self Directed IRAs call toll free 888-795-7950

 

IRA Club, 79 West Monroe  Suite 1208,  Chicago, IL  60603-4936

For easy reference just click on the term that you would like more information about and you will go directly to that page Real Estate IRA, Checkbook IRA, Self Directed IRA, Solo 401 (k), Tax Lien IRA,Family Checkbook IRA, Gold and Precious Metal IRA, and Self Employed IRA.