A SEP-IRA is a traditional IRA containing contributions made by an employer under an SEP plan. Both can receive employer contributions to an SEP IRA and make regular annual contributions to a traditional or Roth IRA, as well as a Physical Gold backed IRA. An SEP plan allows employers to contribute to traditional IRAs (SEP) established for employees, as well as Physical Gold backed IRAs. A company of any size, even a self-employed person, can set up an SEP and invest in a Physical Gold backed IRA. A Simplified Employee Pension IRA (SEP) is a retirement savings plan established by employers for the benefit of their employees and themselves.
It can also be set up by people who are self-employed. Employers can make tax-deductible contributions on behalf of eligible employees to their SEP IRAs. A SEP-IRA is one of the easiest small business retirement plans to set up and maintain. You can make significant contributions for yourself and for any eligible employee.
There is little administration and no tax filing is required. And contributions can vary from year to year or even skip a year. Contributions to the SEP IRA are made by the employer, before taxes. That means an initial tax break or tax-deferred savings for your business.
The employee doesn't pay taxes until the money is withdrawn from the account during retirement. Another great advantage of an SEP IRA is the higher contribution limit. The good news is that there are a few different IRAs for self-employed workers that small business owners can take advantage of as needed: the SIMPLE IRA, the individual 401 (k) and the SEP IRA. Yes, you can contribute to both an SEP IRA and a traditional or Roth IRA (assuming you meet the income limit requirements) in the same year.
Fundamentally, an SEP IRA can be considered a traditional IRA with the ability to receive contributions from the employer. Unlike the traditional IRA or the Roth IRA for individuals (which have a specific contribution deadline, usually April 1), SEPs are different. The SEP IRA does not allow you to make contributions to catch up at age 50, as is the case with other IRAs, because the contributions are made by the employer to the SEP, not by the employee. SEP IRAs are treated like traditional IRAs for tax purposes and allow for the same investment options.