Retirement Plans

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SEP IRA

Employer Contributions up to $49,000

Simplified Employee Pension plans (SEP IRAs) may provide an easy, low-cost retirement plan option if you are self-employed, a partner or the owner of a corporation. With an Entrust self directed SEP, you can invest in what you know.

When you choose a SEP retirement plan, you make contributions to a Traditional IRA for yourself and your employees, if applicable.

SEP IRA Rules

If you choose to contribute to your retirement plan, you have the ability to choose the percentage of contribution for any given year (0 - 25% of earned income) both for yourself and your staff. The only requirement is that the contribution percentage, in any year, be the same for each employee.

If you would like a self-directed SEP IRA and your current retirement plan does not allow self direction, you may transfer all or part of the funds to an Entrust self directed SEP IRA so that you may choose your own investments.

Keep in mind that the maximum compensation amount that can be used for calculating your contribution is $245,000 (2009/2010).

Funding Your Self Directed IRA - With an IRA Rollover,  Transfer or Contribution

The most common technique to funding a self directed SEP IRA is through making a contribution to your account. You may also roll over or transfer funds from an existing employer plan, such as a 401k, a pension plan or another SEP IRA. If your current SEP IRA does not allow self-direction, you may also make an IRA Rollover or IRA transfer to an Entrust self directed SEP IRA so that you may choose your own investments.

Why consider an Entrust self directed SEP IRA or real estate SEP IRA

An Entrust self directed SEP IRA does not have the start-up and operating costs of a conventional employer plan and allows for a tax-deductible contribution of up to 25 percent of each employee’s pay. And with a self directed SEP IRA or real estate SEP IRA, you and your employees can have the flexibility to self-direct your retirement funds into real estate, mortgages and other alternative investments.

Also consider a self-directed SEP IRA if:

• You are a sole proprietor, independent contractor, self-employed, partner, corporation, or S corporation.
• Your business pays no taxes on investment earnings.
• You don’t want to be locked into making contributions every year.
• You’d like a plan with low administrative costs.
• You’re looking for a wider range of investment choices, including stocks, bonds, mutual funds, real estate, notes, LLCs and more.

SEP IRA Contribution Limits and Catch Up Contributions

SEP IRA Contribution Limits and Catch Up Contributions

Contact an Entrust professional in one of our local offices to establish a self directed IRA or open an account.