SEP IRA Information
SEP IRA stands for Simplified Employee Pension Individual Retirement Account. A SEP IRA tends to be the best choice for individuals who either have their own business or receive freelance income.
SEP IRA Contributions
The main reason self-employed individuals prefer the SEP IRA is due to its high contribution limit. You may contribute as much as 25% percent of your annual earnings or $55,000 (as of 2013) to a SEP account. Contributions cannot exceed the lesser of these numbers. You may read more about these limits at irs.gov.
This high contribution limit is beneficial to individuals who have large fluctuation in their annual income. Because you can wait to make your contributions, you can decide when it’s time to file your taxes how much you wish to add to your SEP – which will also help determine the size of your tax bill. As your earnings grow throughout the years, you have the flexibility to maximize your savings.
What is the difference between a SEP IRA and a Traditional IRA?
The major difference between SEP and Traditional IRAs are the contribution limits. The elevated contributions are why most self-employed individuals choose SEP over Traditional. Beyond this, the rules are the same. Your money grows tax-deferred and all the same investment distribution and rollover rules apply just the same as to a Traditional IRA. For more information, visit our IRA page.
Creating a Gold SEP IRA
Because the investment limitations are the same for SEP IRAs as they are for Traditional IRAs, you may own gold in your SEP IRA. Silver, platinum, and palladium are also permitted. For business owners or self-employed individuals who desire to hold large portions of precious metals as part of their retirement, this is a solid option.
If you wish to add gold or other precious metals to a SEP IRA, American Bullion can help. We specialize in adding gold, silver, platinum, and palladium to your retirement account. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.