There are my kinds of retirement plans available today. An individual retirement account (IRA) is one of the most well known. A self-directed IRA (SDIRA) may not be as well known, though it can afford you greater investment opportunities and return potential.
As with an IRA, there are different types of SDIRAs. Traditional and Roth SDIRAs are the most common. However, simplified employee pension (SEP) plans have been around for many years. SEP accounts are available to any business owner, with one or more employees, or anyone who earns a freelance income.
A SEP approach to retirement funds offers employers with an easy means of contributing toward both their employees’ and their own retirement accounts. SEP SDIRAs are considered traditional accounts because they are established with pre-tax wages. As such, SEP SDIRAs are subjected to the same regulations that govern a traditional SDIRA account, as established by the Internal Revenue Service (IRS). These regulations, established through the IRS’ Internal Revenue Codes, govern investment, distribution, and rollovers.
As with any other type of SDIRA, the SEP account owner can establish a business entity to act on its behalf. A limited liability company (LLC) is one such entity. Your SEP SDIRA LLC is an IRS-approved structure that gives you, the owner, the opportunity to open an LLC-related, SEP SDIRA-funded bank account. Other benefits include:
Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.
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