What is a SEP IRA?
A SEP IRA (Simplified Employee Pension Individual Retirement Account) is a retirement plan designed for self-employed individuals, small business owners, and their employees. It allows for higher contribution limits than traditional IRAs and is easy to set up and administer.
Key Features:
- High Contribution Limits: Employers can contribute up to 25% of each eligible employee’s compensation, up to the annual IRS limit.
- Employer-Funded: Only employers make contributions; employees do not contribute directly.
- Tax-Deferred Growth: Contributions are tax-deductible for the business, and investments grow tax-deferred until withdrawal.
- Flexible Contributions: Employers can decide each year how much to contribute, making it ideal for businesses with variable income.
- Easy Setup and Administration: Minimal paperwork and reporting requirements.
- Wide Investment Choices: With Imagine IRA, you can invest in both traditional and alternative assets, including real estate, private equity, precious metals, and more.
Who Should Consider a SEP IRA?
- Self-employed individuals and freelancers.
- Small business owners looking for a simple, flexible retirement plan for themselves and their employees.
- Businesses that want the option to vary contributions year to year.
