Self-Directed SEP IRA
Simplified Employee Pension plans
(SEPs) provide retirement benefits for both the business owners and their employees.
When an employer establishes a SEP, the company makes contributions to a Traditional IRA for its principals and its employees (if any). If the employer elects to contribute to the Plan in a given year, the contribution percentage can range between 0 and 25% of earned income both for the principals and the staff (must be the same percentage for each employee). The contribution limit for self-employed persons is more complicated, but typically based on a percentage of net profit.
With a RealTrust Self-Directed SEP IRA, the investment options of both principals and employees extend beyond the scope of conventional Wall Street products (e.g.- stocks, bonds, and mutual funds), affording you the opportunity to invest in alternative assets such as real estate, private loans, private placements, start-up ventures, precious metals, and many others.
A Self-Directed SEP IRA may be right for you if:
• You are self-employed, a sole proprietor, independent contractor, partner, or pass-through business entity
• You don’t want to be locked into making contributions every year
• You’d like a plan with low administrative costs
• You’re looking for a wider range of investment choices, including stocks, bonds, mutual funds, and the entire menu of alternative assets.
Eligibility: Self-employed individuals and small business owners (such as sole proprietorships, S and C corporations, partnerships, and LLCs)all qualify for this type of plan.
Contribution Limits and Catch Up Contributions:
2019- 25% of your wages (or up to 20% of your Schedule C income) up to a maximum of $56,000. IRA contributions can be made for 2019 up until your tax return filing deadline, including extensions. (See Internal Revenue Service Publication 560 for more information.)
2020 - 25% of your wages (or up to 20% of your Schedule C income) up to a maximum of $57,000. IRA contributions can be made for 2020 up until your tax return filing deadline, including extensions. (See Internal Revenue Service Publication 560 for more information.)
|SEP IRA Contribution Limits||2019||2020|
|SEP IRA Contribution Limits||$56,000||$57,000|
(See Internal Revenue Service Publication 560 for more information.)