--- title: "SEP IRAs: A Simple Way to Save for Retirement" description: Opening and successfully keeping a small business afloat is no easy feat. For someone who may not have the extra time or personnel to delegate to image: https://blog.preferredtrustcompany.com/hubfs/SEP%20IRA_iStock-1138353738.webp --- [Skip to content](https://blog.preferredtrustcompany.com/blog/blog/sep-iras-a-simple-way-to-save-for-retirement#main-content) [![](https://blog.preferredtrustcompany.com/hs-fs/hubfs/Horizontal%20Logo-HighRes%20JPG%20cropped-1.jpg?width=325&height=91&name=Horizontal%20Logo-HighRes%20JPG%20cropped-1.jpg)](https://preferredtrustcompany.com/) - Get Started Show submenu for Get Started - [Schedule Consultation](https://info.preferredtrustcompany.com/preferred-trust-company-consultation) - [Open an Account](https://preferredtrustcompany.com/self-directed-ira-applications/) - [About Preferred Trust](https://preferredtrustcompany.com/about-ira-custodian/) - [Client Testimonials](https://preferredtrustcompany.com/client-testimonials/) - SDIRA Resources Show submenu for SDIRA Resources - [Why Self-Direct?](https://preferredtrustcompany.com/why-self-directed-ira/) - [Inherited IRAs](https://preferredtrustcompany.com/inherited_iras/) - [Prohibited Transactions](https://preferredtrustcompany.com/prohibited_transactions/) - [IRA LLC](https://preferredtrustcompany.com/checkbook-ira-llc/) - [Frequently Asked Questions](https://preferredtrustcompany.com/faqs/) - [Retirement Industry Glossary](https://preferredtrustcompany.com/retirement-industry-glossary/) - [Media](https://preferredtrustcompany.com/media/) - [Blog](https://blog.preferredtrustcompany.com/blog) - Community Show submenu for Community - [Company Partnership](https://preferredtrustcompany.com/company-partnership/) - [Investment Resources](https://preferredtrustcompany.com/resources-new/) - [Investment Services](https://preferredtrustcompany.com/investment-services/) - Forms Show submenu for Forms - [Forms](https://preferredtrustcompany.com/forms/) - [Fee Schedule](https://preferredtrustcompany.com/fee-schedule/) - [Pay Your Fees](https://preferredtrustcompany.com/shop/) - [Login](https://icp.infovisa.com/0234) Open main navigation Close main navigation - Get Started Show submenu for Get Started - [Schedule Consultation](https://info.preferredtrustcompany.com/preferred-trust-company-consultation) - [Open an Account](https://preferredtrustcompany.com/self-directed-ira-applications/) - [About Preferred Trust](https://preferredtrustcompany.com/about-ira-custodian/) - [Client Testimonials](https://preferredtrustcompany.com/client-testimonials/) - SDIRA Resources Show submenu for SDIRA Resources - [Why Self-Direct?](https://preferredtrustcompany.com/why-self-directed-ira/) - [Inherited IRAs](https://preferredtrustcompany.com/inherited_iras/) - [Prohibited Transactions](https://preferredtrustcompany.com/prohibited_transactions/) - [IRA LLC](https://preferredtrustcompany.com/checkbook-ira-llc/) - [Frequently Asked Questions](https://preferredtrustcompany.com/faqs/) - [Retirement Industry Glossary](https://preferredtrustcompany.com/retirement-industry-glossary/) - [Media](https://preferredtrustcompany.com/media/) - [Blog](https://blog.preferredtrustcompany.com/blog) - Community Show submenu for Community - [Company Partnership](https://preferredtrustcompany.com/company-partnership/) - [Investment Resources](https://preferredtrustcompany.com/resources-new/) - [Investment Services](https://preferredtrustcompany.com/investment-services/) - Forms Show submenu for Forms - [Forms](https://preferredtrustcompany.com/forms/) - [Fee Schedule](https://preferredtrustcompany.com/fee-schedule/) - [Pay Your Fees](https://preferredtrustcompany.com/shop/) - [Login](https://icp.infovisa.com/0234) [All posts](https://blog.preferredtrustcompany.com/blog/all) October 7, 2026 # SEP IRAs: A Simple Way to Save for Retirement By  [Preferred Trust](https://blog.preferredtrustcompany.com/blog/author/preferred-trust)  ·  2 minute read At Preferred Trust Company, we understand that starting a self-employed or small business, and successfully keeping it afloat, is no easy feat. We also understand that as an entrepreneur, you may not have the time or personnel to delegate to help you shop for things like a retirement plan. What if we told you it's a lot simpler than you think?  It's time to take your retirement goals off the backburner and take advantage of the plans the IRS established for hardworking people like yourself! One plan you may want to consider is the SEP IRA, also known as the [Simplified Employee Pension IRA](https://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep). The SEP IRA was designed for the self-employed and small business owners with few to no additional employees. All that is required to establish a SEP IRA is an EIN # for your business, the one-page IRS 53505-SEP form completed to be shared with eligible employees, and a [custodian](https://preferredtrustcompany.com/retirement-industry-glossary/) to open your retirement account(s). Eligible employees must be included in the plan if they meet the following criteria: - They are 21 years old. - They have worked for you in at least three of the last five years. - Have earned $600 in compensation from your business for the year. The SEP plan is flexible, as the plan owner you could set the eligible age to as young as 18 years old or require only six months of employment to qualify. [SEP IRAs](https://preferredtrustcompany.com/self-directed-ira-applications/) are like Traditional IRA's in that all contributions made are tax-deferred. Contributions are solely made through employer non-elective deferrals. However, if the SEP plan permits, you and your employees can still make employee elective contributions akin to the standard IRA limits ($6,500 for 2023) to the SEP account; or you could make contributions to your own personal Traditional or Roth IRA accounts. The same percentage of contributions must be made across the board for yourself and your eligible employees. For 2023, contributions can be made up to 25% of compensation/salary, the maximum amount capped at $66,000. For 2022, it was capped at $61,000. Other advantages for this type of account include no minimum contribution requirements, and they can be made throughout the year and/or after the year ends but before the IRS tax filing deadline, of the next calendar year. This is beneficial for when cash flow can be an issue. Plus, you can continue to make contributions if you keep working past the age of 72. Another bonus is that contributions are tax-deductible for the lesser of either your contributions or 25% of compensation (subject to a $330,000 compensation cap in 2023, compensation capped at $305,000 in 2022). Depending on which custodian you choose to open your plan with, your retirement funds can be invested in any kind of security, including stocks, bonds, mutual funds and exchange traded funds. If you are interested in [alternative investments](https://preferredtrustcompany.com/what-can-i-invest-in-alternative-investments/), such as cryptocurrency, gold, real estate, etc. there are also Self-Directed IRA custodians, like Preferred Trust Company, that can custody those types of investments in a retirement account.  As you can see, starting a savings plan for your business does not have to be complicated, and the benefits outweigh the few hours spent getting one started. Your future self and your employees will thank you in the long run. For more information about SEP IRAs, visit the irs.gov for [SEP IRA retirement plan FAQ](https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-seps#:~:text=How%20much%20can%20I%20contribute,living%20adjustments%20for%20later%20years\).). If you or someone you know could benefit from establishing a SEP IRA, [apply online](https://preferredtrustcompany.com/self-directed-ira-applications/) or give us a call at 888-990-7892 or contact us at [clientservice@ptcemail.com](mailto:clientservice@ptcemail.com) for more info. Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.preferredtrustcompany.com/blog/blog/sep-iras-a-simple-way-to-save-for-retirement) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.preferredtrustcompany.com/blog/blog/sep-iras-a-simple-way-to-save-for-retirement) [twitter icon](https://twitter.com/intent/tweet?url=https://blog.preferredtrustcompany.com/blog/blog/sep-iras-a-simple-way-to-save-for-retirement) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://blog.preferredtrustcompany.com/blog/blog/sep-iras-a-simple-way-to-save-for-retirement) [envelope icon](mailto:?body=https://blog.preferredtrustcompany.com/blog/blog/sep-iras-a-simple-way-to-save-for-retirement) ## Related posts [![](https://blog.preferredtrustcompany.com/hubfs/Guide.jpg)](https://blog.preferredtrustcompany.com/blog/ultimate-guide-to-alternative-retirement-investments) ### [Ultimate Guide to Alternative Retirement Investments: Exploring IRA Custodians, Self-Directed IRAs, and SEP vs SIMPLE IRAs](https://blog.preferredtrustcompany.com/blog/ultimate-guide-to-alternative-retirement-investments) [![](https://blog.preferredtrustcompany.com/hubfs/SEPvSimple.jpg)](https://blog.preferredtrustcompany.com/blog/sep-vs-simple-ira) ### [The SEP vs. Simple IRA Difference](https://blog.preferredtrustcompany.com/blog/sep-vs-simple-ira) [![](https://blog.preferredtrustcompany.com/hubfs/iStock-178972681%20Apple%20and%20Orange.webp)](https://blog.preferredtrustcompany.com/blog/blog/fee-comparison-part-1-self-directed-vs-brokerage-firm-iras) ### [Fee Comparison: Self-Directed vs Brokerage Firm IRAs](https://blog.preferredtrustcompany.com/blog/blog/fee-comparison-part-1-self-directed-vs-brokerage-firm-iras) ![White Horizontal Logo PNG cropped-1](https://blog.preferredtrustcompany.com/hs-fs/hubfs/White%20Horizontal%20Logo%20PNG%20cropped-1.png?width=250&height=67&name=White%20Horizontal%20Logo%20PNG%20cropped-1.png "White Horizontal Logo PNG cropped-1")  Specialist self-directed IRA custodian for alternative investment sponsors and individual investors.  [702-998-7892](tel:702-998-7892) [linkedin-in icon](https://www.linkedin.com/company/preferredtrust) [youtube icon](https://www.youtube.com/@preferredtrust) ##### For Investors - [Open an Account](https://preferredtrustcompany.com/self-directed-ira-applications/) - [Fee Schedule](https://preferredtrustcompany.com/fee-schedule/) - [Investor FAQs](https://www.preferredtrustcompany.com/faqs) ##### Investment Options - [Precious Metals](https://www.preferredtrustcompany.com/precious-metals-2/) - [Digital Assets](https://www.preferredtrustcompany.com/digital-currency/) ##### Client Tools - [Client Portal](https://icp.infovisa.com/0234) - [Forms Library](https://www.preferredtrustcompany.com/forms/) - [Contact Support](https://www.preferredtrustcompany.com/contact-us/) - [Blog](https://info.preferredtrustcompany.com/blog) - [IRA Rules](https://www.preferredtrustcompany.com/inherited_iras/) ##### Company - [About](https://www.preferredtrustcompany.com/about-ira-custodian/) - [Contact Us](https://www.preferredtrustcompany.com/contact-us/) --- Preferred Trust Company performs the duties of a directed (passive) custodian and does not provide due diligence to third parties regarding prospective investments, platforms, sponsors, dealers, or service providers. As a directed custodian, Preferred Trust Company does not sell investments or provide investment, tax, or legal advice. Investors are responsible for their own investment decisions and should consult qualified professionals.  © 2026 Preferred Trust Company. All rights reserved.  - [Privacy Policy](https://www.preferredtrustcompany.com/privacy-policy/) - [Terms of Use](https://www.preferredtrustcompany.com/terms-conditions/) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Preferred Trust", "url" : "https://blog.preferredtrustcompany.com/blog/author/preferred-trust" }, "dateModified" : "2023-12-15T18:11:48.736Z", "datePublished" : "2019-10-10T07:00:00.000Z", "headline" : "SEP IRAs: A Simple Way to Save for Retirement", "image" : [ "https://blog.preferredtrustcompany.com/hubfs/SEP%20IRA_iStock-1138353738.webp" ], "mainEntityOfPage" : { "@id" : "https://blog.preferredtrustcompany.com/blog/blog/sep-iras-a-simple-way-to-save-for-retirement", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.preferredtrustcompany.com/hubfs/Horizontal%20Logo-HighRes%20JPG%20cropped-1.jpg" }, "name" : "Preferred Trust" } } ``` ```json { "@context" : "http://schema.org", "@type" : "Article", "author" : { "@type" : "Person", "name" : [ "Preferred Trust" ], "url" : "https://blog.preferredtrustcompany.com/blog/author/preferred-trust" }, "datePublished" : "2019-10-10T07:00:00+0000", "description" : "Opening and successfully keeping a small business afloat is no easy feat. 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