SEP IRA

High Limit Contribution IRAs

for the Self Employed

 

SEP IRA & Simple IRA Accounts

If you are Self Employed, the IRS has a deal for you: High Contribution IRA accounts. Unlike the typical $5,000 or $6,000 annual limit allowed for regular IRAs, a SEP IRA allows annual contribution limits of $49,000. If you are considering starting a 401(k) plan for your business, you may want to consider a SEP or Simple IRA instead. The IRA plans are easier to administer and have a much lower cost to maintain.

Both the SEP and the Simple IRA work best for the person with no employees. However, should you add an employee, making the extra contributions is a snap. And adding an employee to a SEP or Simple IRA requires no additional IRS filing.

A SEP Checkbook IRA:

  • You may Self Direct the investments
  • You may have a Checkbook for the SEP IRA-LLC
  • Cost to maintain the SEP option with your account is zero.
  • It is easy to add an employee
  • The Annual Contribution Date is the same as for a regular IRA
  • Annual Contribution Limits: any amount you want to contribute up to 25% of your business earnings not to exceed $49,000.
  • Start up cost $0.00 (if you already own or are starting a new IRA Club account)

A Simple Checkbook IRA:

Same as above with one change designed to help very small businesses.

  • Annual Contribution Limits: any amount you wish to contribute up to 100% of your business earnings, not to exceed $11,500.

Deciding between a SEP or a Simple IRA

The reason that many people select the SEP or SIMPLE IRA is because they are seeking to set aside as much money as possible for their future in a tax deferred account. If that is your goal, how do you select between a SEP and a Simple IRA? The key question is: How large do you expect your business to grow? If this is a side business that you expect will earn $46,000 or less per year, the Simple will allow the larger contribution. If you expect the business to earn more than $46,000, you should consider a SEP IRA which allows a larger tax deferred contribution.

How do you start a SEP or Simple

Just call the IRA Club and tell us you are Self Employed. 

 

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

 

IRA Club, 333 N. Michigan Ave  Suite 2220,  Chicago, IL  60601

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