Key Ways to Use a Self-Directed SEP IRA
Self-employed? Own a small business? You probably already know too much about how much responsibility sits on your shoulders. But when it comes to retirement planning, that extra control can be a good thing. That’s especially true if you’re using a Self-Directed SEP IRA. These accounts are made for business owners and entrepreneurs, and when combined with the flexibility of self-direction, they open the door to a whole new range of investing possibilities. So, how exactly can a Self-Directed SEP IRA help you take charge of your retirement future? Here’s a closer look.
Leverage Higher Contribution Limits to Grow Faster with a Self-Directed SEP IRA
One of the biggest advantages of a SEP IRA is the high contribution limit. Compared to Traditional or Roth IRAs, SEP IRAs have higher contribution limits, and they constantly go up to adjust for inflation. If you want to store away a lot more money for your investments—using the higher income that you have thanks to your business—then you’re able to do so with a SEP IRA. This alone can be worth the “price of admission,” so to speak.
When you combine that with self-direction, those larger contributions can be used for alternative investments. Think rental properties, tax lien certificates, private loans, or even shares in a private company. It’s not just about saving more. It’s about putting that money to work in ways that align with your knowledge and your risk tolerance. Overall, SEP IRAs give you the control and freedom necessary to do so.
Use Familiar Investments to Stay in the Driver’s Seat
Self-Directed SEP IRAs are especially appealing to people who already have investment experience outside the traditional markets. If you know real estate, you can use the account to purchase rental properties or raw land. If you’re familiar with private lending, you can issue promissory notes through the account. The idea is simple: use what you know to grow your retirement fund.
You also get to stay hands-on. You choose the assets. You decide the strategy. Of course, you have to follow IRS rules—no self-dealing, no personal use of assets—but within those lines, there’s a lot of freedom. That kind of autonomy is exactly what many business owners are looking for when they set up a retirement account. After all, business owners are used to a lot of freedom. So why shouldn’t they enjoy similar levels of freedom when it comes to investing in retirement assets on their terms?
Build Flexibility into Your Long-Term Strategy
Another benefit to SEP IRAs? Simplicity. SEP IRAs are easy to set up and maintain. There’s minimal paperwork and flexible contribution schedules. That’s ideal if your income fluctuates or you want the freedom to scale up or down each year. However, it’s worth noting that every business is different, so talk to a financial professional before you’re sure about what to contribute.
When you add self-direction, that flexibility becomes even more powerful. You’re not stuck with mutual funds you don’t believe in. You can shift between asset classes, pursue opportunities when they arise, and customize your retirement plan as your business evolves. It’s not a one-size-fits-all solution. Ideally, it’s more like a personalized path.
And while the SEP IRA is an employer-sponsored plan, you can still enjoy all the tax advantages you’d expect. Contributions are generally tax-deductible, and the investments grow tax-deferred until you make withdrawals in retirement. Curious about getting started? Now’s the time to reach out to TurnKey IRA at our number: 844-8876-IRA (472). We’ll be glad to talk to you about the potential next steps.
Imagine a life where your retirement investments feel as easy to make as any other investment. Sure, rules are separating the two, but once you have a Checkbook IRA in place, you’d be surprised how natural it can feel to make retirement investments—interested in learning more? Contact TurnKey IRA at 844-8876-IRA (472) for a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
