Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Finance Gold SEP Gold IRA Account Guide Updated Nov 19, 2024 8-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Andy Rowe Written by Andy Rowe Expertise: Personal Loans, Credit Cards, Real Estate, Financial Technology Learn more about Andy Rowe Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® A retirement free of financial worry requires careful planning—and it’s never too early to start, especially if you’re self-employed. A SEP gold IRA can help. This unique type of retirement account is primarily used by freelancers, contractors, and small business owners (and those who work for them). You can use the account to invest in gold, silver, and other precious metals. If you want to add gold and silver to your retirement plan, this guide can help. Read on to learn more about a SEP gold IRA and how to start your own. Table of Contents Skip to Section How does a SEP gold IRA account work?SEP gold IRA guidelinesPros and cons of a SEP gold IRAHow do you start a SEP gold IRA account?What are the top companies for a SEP gold IRA? SEP gold IRA company reviewsIs a SEP gold IRA right for you?How do SEP IRAs compare to other IRAs?FAQ How does a SEP gold IRA account work? A SEP gold IRA (Simplified Employee Pension) is a self-directed Individual Retirement Account designed for small business owners, self-employed professionals, and those who work for them. Sometimes, you can use a SEP gold IRA to invest in gold, silver (and other precious metals), and other tangible assets, such as collectibles, artwork, and real estate. You’ll need a custodian to set up and manage a SEP gold IRA. A custodian is a financial institution that safeguards your account’s investment according to IRS regulations. Benefits of a custodian include IRS compliance, security, and administrative support. Your contributions to a SEP gold IRA are pre-tax, meaning you pay taxes upon withdrawal. SEP gold IRAs offer higher contribution limits than other retirement accounts. This type of IRA is best for self-employed or business owners with higher income expectations in retirement. SEP gold IRA guidelines To operate a SEP gold IRA, you must adhere to a few IRS guidelines regarding these accounts. These guidelines include contribution limits, eligibility requirements, and rules for withdrawals. Here’s an in-depth look at these guidelines: Contribution limits SEP IRAs have higher limits than traditional and Roth IRAs, but they’re not unlimited. An employer can contribute 25% of your total annual compensation or $69,000 for 2024. If you’re self-employed, “compensation” refers to your net yearly earnings minus half your self-employment tax and your contributions to your personal IRA (if any). YearContribution limitPercentage of compensation2024$69,00025%2023$66,00025%2022$61,00025%2021$58,00025% Eligibility requirements Employers should complete IRS form 5305-SEP to establish a plan. Employees must be 21 years old, have worked with the employer for at least three of the last five years, and have earned at least $750 in compensation in the last year. The employer can choose to have less stringent rules. For example, employees can be age 18 and have three months of service. Erin Kinkade CFP® Only employers can contribute to the plan; certain investments, such as insurance and securities, are prohibited. Withdrawals and investing Withdrawals made before 59½ are subject to a 10% early withdrawal penalty plus regular income tax. At age 72, 73, or 75, account holders must take required minimum distributions (RMDs). If you don’t take distributions, you owe a 25% excise tax on the undistributed amount or a lower percentage, such as 10%, if corrected within what the IRS determines is reasonable. Pros and cons of a SEP gold IRA Let’s examine an example and the pros and cons of a SEP gold IRA. Jed works for Rambling RV, a company that decided to establish a SEP for its employees. The financial institution Rambling RV has chosen for its SEP offers many investment funds. Here are the benefits and drawbacks of Jed and Rambling RV. Pros Easy to set up and low administrative cost for the employer Flexible annual contributions mean Rambling RV can contribute more in good years and less during a downturn Jed can diversify and split his contribution among the multiple funds Cons Jed can’t make contributions himself; only the employer, Rambling RV, can contribute to the SEP Rambling RV must apply the same contribution rate to all employees Jed must start taking distributions at his beginning RMD age, which may be 72, 73, or 75, depending on the year he was born. How do you start a SEP gold IRA account? Your first step to starting a SEP gold IRA is to find a gold IRA custodian to assist you with setup, purchasing your metals, shipping them to a depository, handling IRS paperwork, and funding your account. Here is an easy three-step process you can follow to get started: Sign a written agreement and formalize the SEP to provide benefits to all eligible employees. Inform your employees, and share the details of the SEP agreement. Set up an IRA for each eligible employee. Read More How does a gold IRA work? What are the top companies for a SEP gold IRA? Many companies offer SEP gold IRA services, each with its own offerings and fee structure. If you want to be sure you’re getting the best account (and pricing) for your needs, shopping around and comparing at least a few options is essential. Here are characteristics that help us define the top companies for a SEP gold IRA: Reputation Customer service Investment options Resources Security Competitive pricing Among the many companies we’ve reviewed, the top companies that excel in these areas are in the table below. CompanyBest for…Rating (0-5) Best Overall 4.9 Visit Site Best pricing 4.7 Visit Site Not sure where to start? Check out our best gold IRA companies guide. SEP gold IRA company reviews Reading reviews provides insights into the strengths and weaknesses of each precious metal investment firm, helping you make informed decisions. Our evaluations cover customer service, fees, and investment options, ensuring you find the best gold IRA fit for you. American Hartford Gold Group Best overall 4.9 /5 LendEDU Rating Visit Site Why we picked it American Hartford Gold Group offers a comprehensive suite of services for investing in gold and other precious metals, including expert guidance and excellent customer service. The company’s commitment to customer satisfaction, competitive pricing, and buyback guarantee make it a top choice for those looking to diversify their retirement portfolio. Excellent customer reviews Up to $5,000 in free silver No IRA fees for three years 7-day money-back guarantee No online prices for metals Doesn’t offer platinum or palladium products Anthem Gold Group Best for no rollover fees 4.7 /5 LendEDU Rating Visit Site Why we picked it Anthem Gold Group stands out for charging no IRA rollover fees and offering free storage, insurance, and maintenance for up to 10 years. This, combined with its strong customer service and competitive pricing, makes it an excellent choice for new investors in gold IRAs. No IRA rollover fees Free storage for up to 10 years Simple repurchase program Limited online information Only in business since 2023 Our expert’s advice Erin Kinkade CFP® How can investors balance the risks and rewards of holding gold in a SEP IRA, and what percentage of their retirement portfolio should they consider allocating to precious metals? I suggest consulting with a financial professional to help analyze your risk tolerance and capacity and how incorporating gold into your portfolio affects your overall financial plan. I typically recommend holding 5% to 10% of one asset in a portfolio— definitely no more than 10%. Is a SEP gold IRA right for you? A SEP gold IRA can be an excellent addition to your retirement plan. But what scenario makes it a perfect fit? SEP gold IRAs are ideal for self-employed individuals and small business owners who want to maximize their retirement contributions. SEP gold IRAs are beneficial if you expect your tax bracket to be lower in retirement. Investing in a SEP gold IRA is also a smart hedge against inflation because gold tends to hold its value and increase over time. It’s a terrific way to diversify your portfolio too. Here are questions to ask yourself if you’re considering whether a SEP gold IRA is the right choice for you: ConsiderationYesNoAre you self-employed or a small business owner? ✅ Ideal for a SEP gold IRA❌ Consider other IRA optionsDo you want to maximize your retirement contributions?✅ SEP gold IRAs offer higher limits ❌ Consider other IRA options Are you looking for tax advantages?✅ Contributions are tax-deductible for the employer and employee ❌ Explore other retirement accountsDo you want to protect your wealth from inflation?✅ Gold can act as a hedge❌ Consider traditional retirement accountsDo you need to diversify your retirement portfolio? ✅ SEP gold IRAs provide diversification❌ Consider traditional IRAs How do SEP IRAs compare to other IRAs? Choosing the right IRA is an important step toward your retirement goals. Understanding the differences between IRAs will help you make informed decisions about your retirement plans. Below are breakdowns of the three types of IRA accounts. SEP IRABest forSelf-employed, small business owners; your tax bracket will be lower in retirement ContributionsPre-taxContribution limitsLess of $69,000 or 25% of your annual compensationTax-deductible?YesBenefitsHigh contribution limits and tax-deductibleRequirementsMust be self-employed or work for a self-employed person and work for the business at least 3 of the last 5 years Traditional IRABest forYour tax bracket will be lower in retirement ContributionsPre-taxContribution limits$7,000 for age 49 and under, $8,000 for 50+Tax-deductible?YesBenefitsTax-deductibleRequirementsIncome <$77,000 if single and <$123,000 if married and filing jointly Roth IRABest forYour tax bracket will be higher in retirementContributionsPost-taxContribution limits$7,000 for age 49 and under, $8,000 for 50+Tax-deductible?NoBenefitsNot taxed in retirement, when earnings are lowerRequirementsIncome <$146,000 if single and <$230,000 if married and filing jointly While your personal circumstances will affect your pick, a good rule of thumb would be to consider a SEP or Roth IRA if you expect to make less money in retirement than employment and a SEP if you expect to make high contributions during your working years. FAQ What is the best SEP gold IRA custodian? The best SEP gold IRA custodian will vary based on individual needs. The companies listed above partner with custodians to offer a complete service to their clients. For example, these companies may manage the accounts with custodians such as Equity Trust, STRATA Trust Company, or Kingdom Trust. Discuss custodians with your selected gold IRA company to choose the best one for your needs. Can you do a SEP gold IRA rollover from another retirement account? You can perform a SEP gold IRA rollover from another retirement account, such as a traditional IRA, Roth IRA, or 401(k). The process involves transferring funds from your retirement account to your SEP gold IRA, often through a direct transfer or a rollover within 60 days. Following IRS rules is important to avoid penalties and taxes during the rollover process. What should I look for in SEP gold IRA custodian reviews? When reviewing SEP gold IRA custodians, look for the custodian’s reputation, expertise in managing SEP IRAs, and security measures for storing precious metals. Customer reviews and ratings on platforms such as the Better Business Bureau and Trustpilot can provide valuable insights into other investors’ experiences.