American IRA Discusses Understanding the Self-Directed SEP IRA

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The Self-Directed SEP IRA, or Simplified Employee Pension, can be a major part of an investors’ retirement plan. A recent blog post at American IRA explained how these arrangements work.

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American IRA CEO, Jim Hitt

These arrangements can allow people who earn large incomes to really put aside a lot of tax-protected money for retirement

Some small business owners may do very well to use a Self-Directed SEP IRA, according to a recent post at the American IRA blog. The Self-Directed IRA administration firm not only explained the basics of the SEP IRA, but explained what kinds of contributions, limitations, and advantages these accounts have for small business owners.

The concept behind a Self-Directed SEP IRA can be simple. Allowing an annual contribution of up to $55,000 (at least in the tax year of 2018) per individual, they provide a lot of freedom for people to cut down on their overall burden and put aside a massive amount of money for retirement. Those who earn inconsistent incomes or earn quarterly or annual bonuses, the post notes, would do well to have a SEP IRA in their portfolio.

But there are other advantages as well, as the post notes. An employer can contribute up to 25% of each employee’s annual compensation to the plan. This contribution can be in addition to how much each employee contributes. This creates a large potential retirement plan and gives employers the tools necessary to set up high-quality retirement benefits at their place of business.

There are requirements to which every employer should pay attention, according to the post. For example, an employer would be required to have their contribution percentage between 0% and 25% of the earnings of each employee for each year. But these limitations are hardly on the lower end of the spectrum, considering the low limits of a Self-Directed Roth IRA, for example.

“You would be surprised at how many people do not know about what they can accomplish with a Self-Directed SEP IRA,” noted Jim Hitt of American IRA. “These arrangements can allow people who earn large incomes to really put aside a lot of tax-protected money for retirement. Those who need to play ‘catch-up’ for retirement while they have a large income might really benefit from these arrangements, and it also helps lower the overall stress they have as they build a retirement portfolio, they can be proud of.”

For more information on the Self-Directed SEP IRA, visit the post at or call 866-7500-IRA.

American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."

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