Your Self-Directed SEP IRA and Potential Alternative Investments

A Self-Directed SEP IRA—or a Simplified Employee Pension Plan IRA—makes it easier for entrepreneurs to invest in retirement accounts. They come with high contribution limits and plenty of flexibility. But what if you want to make unique, alternative investments with this type of account, like real estate or gold? You’d be surprised at how much you can achieve. Here’s what you need to know about Self-Directed SEP IRAs and how they open new avenues for your retirement investing options.

What is a Self-Directed SEP IRA?

A Self-Directed SEP IRA, like other SEP IRAs, is designed to help small business owners and self-employed individuals save for retirement. Easy enough. So, what makes it unique? The big advantage of a SEP IRA is the higher contribution limit compared to a traditional IRA, which allows you to contribute up to 25% of your net income (or $70,000 in 2025, whichever is less).

But the real benefit comes when you choose to go the self-directed route.

With a Self-Directed SEP IRA, you can invest in a wider variety of assets. You don’t have to limit yourself to stock funds that simply follow Wall Street headlines. You can invest in real estate, precious metals like gold, or even private equity opportunities—all of which could help you grow your retirement savings in ways that traditional investments can’t.

Of course, your actual investment results will vary. It is, after all, your choice what to invest in when you use a Self-Directed account. That means more freedom, yes. But it also means carrying the full weight of the responsibility of that account’s success.

Exploring Alternative Investments with a Self-Directed SEP IRA

Alternative investments offer a unique opportunity to diversify your retirement portfolio, especially if you're looking to hedge against stock market volatility. Real estate, for example, can provide steady cash flow through rental income. Additionally, the value of properties can appreciate over time. Precious metals like gold and silver have traditionally been a safe haven during economic downturns—you may have noticed the high prices of gold and silver in recent years. This makes them especially attractive options for anyone looking to preserve wealth.

Another benefit of alternative investments in a Self-Directed SEP IRA is the potential tax advantages. Just like other IRAs, a Self-Directed SEP IRA allows your investments to grow tax-deferred, meaning you won’t pay taxes on your earnings until you withdraw them during retirement. With the right strategy, this can significantly boost the long-term growth of your retirement account.

Why Self-Directed SEP IRAs Are Ideal for Alternative Investments

One of the main reasons self-employed individuals and small business owners turn to Self-Directed SEP IRAs is the flexibility they offer. Not only do you have higher contribution limits, but you also gain the ability to invest in assets that align with your personal goals. Whether you're looking to build wealth through real estate or protect your savings with precious metals, a Self-Directed SEP IRA gives you the tools you need to succeed.

Before diving into alternative investments, however, it’s important to make sure you're following the rules set by the IRS. Certain assets are prohibited, and making a mistake could lead to penalties. But with proper guidance and research, you can use your Self-Directed SEP IRA to take advantage of a world of investment opportunities. Ready to try a SEP IRA with self-direction to give yourself more freedom and independence as an investor? Now’s the time to get started with your new investment journey.

Interested in learning more? Reach out to us here by dialing 866-7500-IRA.