SEP IRA Benefits

A SEP IRA allows generous contributions limits. The 2023 SEP IRA contribution limit is $66,000 and the 2022 SEP IRA limit is $61,000.

Tax Deductible Contributions

Within IRS limits, contributions into a SEP IRA are generally 100% tax deductible.

Tax Deferred Growth

Interest earned in a SEP IRA grows tax-deferred. Dividends and investment earnings continue to grow without being taxed until you withdraw the assets. Withdrawals after age 59 ½ are taxed as ordinary income. Withdrawals prior to age 59 ½ may incur a 10% IRS penalty as well as income taxes. Beginning January 1, 2023, the first IRS required minimum distribution is age 73.

Contribution Flexibility

Contributions into a SEP IRA are completely discretionary. The percentage of contribution can vary year to year or can be stopped depending on profitability.

Low Cost and Easy Administration

SEP IRA accounts are inexpensive, easy to setup and maintain and do not require annual IRS filings.

Retirement Plan Consolidation

Retirement plans can be rolled over and consolidated into a SEP IRA. This includes Traditional IRAs, 401k Plans, Money Purchase Plans, Profit Sharing Plans, Defined Benefit Plans, 403b Plans and Rollover IRAs. A Roth IRA or retirement accounts that have after tax contributions can not be rolled over into a SEP IRA.

SEP IRA Frequently Asked Questions

SEP IRA FAQs. Find answers to your questions about the SEP IRA.

Need Help or Advice?

Eric Kuniholm Eric Kuniholm, CPWA®
Certified Private Wealth Advisor®
Beacon Capital Management Advisors

Contact me if you would like to open a SEP IRA or if you would like to learn more about the services I provide to my clients. I am registered in all 50 States.

Contact Eric Kuniholm