{"id":11401,"date":"2021-04-19T17:33:20","date_gmt":"2021-04-19T17:33:20","guid":{"rendered":"https:\/\/udirectira.com\/?p=11401"},"modified":"2023-05-05T21:40:03","modified_gmt":"2023-05-05T21:40:03","slug":"simplified-employee-pension-sep-2","status":"publish","type":"post","link":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/","title":{"rendered":"Simplified Employee Pension (SEP)"},"content":{"rendered":"

Are you Self-Employed? If so you may find the Simplified Employee Pension ( or SEP) IRA to be helpful when it comes to tax savings and planning for your retirement. Whereas retirement plans all have similar rules, not all retirement plans are alike. Below you will learn what is different about the SEP retirement plan and how to decide if this plan is right for you.<\/p>\n

CONTRIBUTIONS:<\/strong><\/h3>\n

The Simplified Employee Pension IRA allows the business to contribute the lesser of 25% of business income (for 2022 it is $61,000 and for 2023 it is $66,000). This employer contribution is a pre-tax contribution. You can contribute up to 25% of the employee’s total compensation or a maximum of $61,000 for the 2022 tax year or $66,000 for the 2023 tax year, whichever is less.<\/p>\n

EMPLOYEES:<\/strong><\/h3>\n

You can have full-time employees and use a SEP retirement plan. You must make SEP contributions for the employee.<\/p>\n

TAKING A PERSONAL LOAN:<\/strong><\/h3>\n

The SEP IRA does not allow you to take a personal loan. No IRA allows this.<\/p>\n

You can make a loan to other people or businesses from the Simplified Employee Pension if the borrower is not a disallowed party. Here is information regarding prohibited parties.<\/p>\n

UNRELATED BUSINESS INCOME TAX (UBIT) and UNRELATED DEBT FINANCED INCOME TAX (UDFI):<\/strong><\/h3>\n

UBIT is a tax when a SEP retirement plan invests into a business.<\/p>\n

UDFI is applicable when an SEP IRA is using financing to buy real estate.<\/p>\n

You can read about both these taxes\u00a0HERE<\/a>. Best to consult your tax advisor or uDirect when you have specific UBIT\/UDFI questions. We\u2019ll be sure to answer all your inquiries to ensure you have confidence when it comes to your account.<\/p>\n

COSTS AND RESPONSIBILITIES OF SIMPLIFIED EMPLOYEE PENSION IRA:<\/h3>\n

The SEP IRA has a $50 set-up fee plus the first year\u2019s annual fee of $275 to set up the SEP. Once the plan is established, you do not have any annual IRS reporting requirements. The tax reporting and record-keeping are included and are handled by the custodian. To set up your SEP retirement plan click HERE<\/a>.<\/p>\n

FINAL THOUGHTS:<\/strong><\/h3>\n

Always consult a tax professional when deciding between retirement plans or any decision regarding any retirement plan. Feel free to contact us if you have questions about SEP IRAs or any other IRA-related topic. We can be reached at 714-831-1866 or info@uDirectIRA.com.<\/p>\n","protected":false},"excerpt":{"rendered":"

Are you Self-Employed? If so you may find the Simplified Employee Pension ( or SEP) IRA to be helpful when it comes to tax savings and planning for your retirement. Whereas retirement plans all have similar rules, not all retirement plans are alike. Below you will learn what is different about the SEP retirement plan…<\/p>\n","protected":false},"author":5,"featured_media":10881,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nSimplified Employee Pension (SEP) - uDirect IRA Services<\/title>\n<meta name=\"description\" content=\"SEP IRAs provide self-employed individuals with the security they need to help save for retirement. Read on to learn more about this retirement plan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Simplified Employee Pension (SEP) - uDirect IRA Services\" \/>\n<meta property=\"og:description\" content=\"SEP IRAs provide self-employed individuals with the security they need to help save for retirement. Read on to learn more about this retirement plan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/\" \/>\n<meta property=\"og:site_name\" content=\"uDirect IRA Services, LLC\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/uDirectIRA\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-19T17:33:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-05T21:40:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"562\" \/>\n\t<meta property=\"og:image:height\" content=\"562\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kaaren Hall\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@uDirectIRA\" \/>\n<meta name=\"twitter:site\" content=\"@uDirectIRA\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kaaren Hall\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/\"},\"author\":{\"name\":\"Kaaren Hall\",\"@id\":\"https:\/\/udirectira.com\/#\/schema\/person\/4226cdbfe8048d9e88896a4a30bae58b\"},\"headline\":\"Simplified Employee Pension (SEP)\",\"datePublished\":\"2021-04-19T17:33:20+00:00\",\"dateModified\":\"2023-05-05T21:40:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/\"},\"wordCount\":389,\"publisher\":{\"@id\":\"https:\/\/udirectira.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/\",\"url\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/\",\"name\":\"Simplified Employee Pension (SEP) - uDirect IRA Services\",\"isPartOf\":{\"@id\":\"https:\/\/udirectira.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg\",\"datePublished\":\"2021-04-19T17:33:20+00:00\",\"dateModified\":\"2023-05-05T21:40:03+00:00\",\"description\":\"SEP IRAs provide self-employed individuals with the security they need to help save for retirement. Read on to learn more about this retirement plan.\",\"breadcrumb\":{\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#primaryimage\",\"url\":\"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg\",\"contentUrl\":\"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg\",\"width\":562,\"height\":562},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/udirectira.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Simplified Employee Pension (SEP)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/udirectira.com\/#website\",\"url\":\"https:\/\/udirectira.com\/\",\"name\":\"uDirect IRA Services, LLC\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/udirectira.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/udirectira.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/udirectira.com\/#organization\",\"name\":\"uDirect IRA Services, LLC\",\"url\":\"https:\/\/udirectira.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/udirectira.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/03\/NEW.png\",\"contentUrl\":\"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/03\/NEW.png\",\"width\":1932,\"height\":577,\"caption\":\"uDirect IRA Services, LLC\"},\"image\":{\"@id\":\"https:\/\/udirectira.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/uDirectIRA\",\"https:\/\/x.com\/uDirectIRA\",\"https:\/\/www.instagram.com\/udirectiraservices\/\",\"https:\/\/www.linkedin.com\/company\/851967\",\"https:\/\/www.youtube.com\/c\/uDirectIRA\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/udirectira.com\/#\/schema\/person\/4226cdbfe8048d9e88896a4a30bae58b\",\"name\":\"Kaaren Hall\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/udirectira.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/2076f15ff2ada720099a68cef57a2de3?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/2076f15ff2ada720099a68cef57a2de3?s=96&d=mm&r=g\",\"caption\":\"Kaaren Hall\"},\"url\":\"https:\/\/udirectira.com\/author\/khalludirectira-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Simplified Employee Pension (SEP) - uDirect IRA Services","description":"SEP IRAs provide self-employed individuals with the security they need to help save for retirement. Read on to learn more about this retirement plan.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/","og_locale":"en_US","og_type":"article","og_title":"Simplified Employee Pension (SEP) - uDirect IRA Services","og_description":"SEP IRAs provide self-employed individuals with the security they need to help save for retirement. Read on to learn more about this retirement plan.","og_url":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/","og_site_name":"uDirect IRA Services, LLC","article_publisher":"https:\/\/www.facebook.com\/uDirectIRA","article_published_time":"2021-04-19T17:33:20+00:00","article_modified_time":"2023-05-05T21:40:03+00:00","og_image":[{"width":562,"height":562,"url":"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg","type":"image\/jpeg"}],"author":"Kaaren Hall","twitter_card":"summary_large_image","twitter_creator":"@uDirectIRA","twitter_site":"@uDirectIRA","twitter_misc":{"Written by":"Kaaren Hall","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#article","isPartOf":{"@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/"},"author":{"name":"Kaaren Hall","@id":"https:\/\/udirectira.com\/#\/schema\/person\/4226cdbfe8048d9e88896a4a30bae58b"},"headline":"Simplified Employee Pension (SEP)","datePublished":"2021-04-19T17:33:20+00:00","dateModified":"2023-05-05T21:40:03+00:00","mainEntityOfPage":{"@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/"},"wordCount":389,"publisher":{"@id":"https:\/\/udirectira.com\/#organization"},"image":{"@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#primaryimage"},"thumbnailUrl":"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/","url":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/","name":"Simplified Employee Pension (SEP) - uDirect IRA Services","isPartOf":{"@id":"https:\/\/udirectira.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#primaryimage"},"image":{"@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#primaryimage"},"thumbnailUrl":"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg","datePublished":"2021-04-19T17:33:20+00:00","dateModified":"2023-05-05T21:40:03+00:00","description":"SEP IRAs provide self-employed individuals with the security they need to help save for retirement. Read on to learn more about this retirement plan.","breadcrumb":{"@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#primaryimage","url":"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg","contentUrl":"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/02\/sep.jpg","width":562,"height":562},{"@type":"BreadcrumbList","@id":"https:\/\/udirectira.com\/simplified-employee-pension-sep-2\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/udirectira.com\/"},{"@type":"ListItem","position":2,"name":"Simplified Employee Pension (SEP)"}]},{"@type":"WebSite","@id":"https:\/\/udirectira.com\/#website","url":"https:\/\/udirectira.com\/","name":"uDirect IRA Services, LLC","description":"","publisher":{"@id":"https:\/\/udirectira.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/udirectira.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/udirectira.com\/#organization","name":"uDirect IRA Services, LLC","url":"https:\/\/udirectira.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/udirectira.com\/#\/schema\/logo\/image\/","url":"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/03\/NEW.png","contentUrl":"https:\/\/udirectira.com\/wp-content\/uploads\/2020\/03\/NEW.png","width":1932,"height":577,"caption":"uDirect IRA Services, LLC"},"image":{"@id":"https:\/\/udirectira.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/uDirectIRA","https:\/\/x.com\/uDirectIRA","https:\/\/www.instagram.com\/udirectiraservices\/","https:\/\/www.linkedin.com\/company\/851967","https:\/\/www.youtube.com\/c\/uDirectIRA"]},{"@type":"Person","@id":"https:\/\/udirectira.com\/#\/schema\/person\/4226cdbfe8048d9e88896a4a30bae58b","name":"Kaaren Hall","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/udirectira.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/2076f15ff2ada720099a68cef57a2de3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2076f15ff2ada720099a68cef57a2de3?s=96&d=mm&r=g","caption":"Kaaren Hall"},"url":"https:\/\/udirectira.com\/author\/khalludirectira-com\/"}]}},"_links":{"self":[{"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/posts\/11401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/comments?post=11401"}],"version-history":[{"count":0,"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/posts\/11401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/media\/10881"}],"wp:attachment":[{"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/media?parent=11401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/categories?post=11401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/udirectira.com\/wp-json\/wp\/v2\/tags?post=11401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}