ASHEVILLE, NC / ACCESSWIRE / March 6, 2021 / The SEP IRA, or the Simplified Employee Pension IRA, can be a powerful way for investors to put money aside for retirement. But what are the more specific advantages and benefits that give the SEP IRA these capabilities? A recent post at American IRA, a Self-Directed IRA administration firm based in Asheville, NC, looked at this very question.
In the post, American IRA looked at three distinct advantages. The first among these was the fact that a SEP IRA plan has "low costs." SEP IRAs do not have the operating and start-up costs typically associated with conventional employer-sponsored plans, according to American IRA. This makes for a favorable start for anyone looking for a more affordable way to begin an employer-based retirement plan.
The second distinct advantage was the amount of tax-deductible contributions allowed under the plan. In this way, a SEP IRA can function similar to a 401(k), allowing plenty of before-tax contributions that help an investor play "catchup" on a retirement portfolio. The high contribution limits are particularly attractive to those investors with high degrees of wiggle room within a budget for putting more money aside in retirement.
In the third advantage listed at the post, American IRA noted that SEP IRA contributions do not have to be the same every year. This adds to the flexibility that an investor can have, especially self-employed investors who have inconsistent incomes. When investors do not have to declare a set amount that a SEP IRA will contribute, it offers flexibility that allows the SEP IRA to adapt with changing economic times. The problems caused by the COVID-19 pandemic in 2020 highlighted the need for flexible investment options.
"The SEP IRA is one of the great secrets of many investors who want to put aside as much money for retirement investing as possible," said Jim Hitt, "but it's not really a secret. We at American IRA want people who qualify for SEP IRAs to know that this is a valid option for their retirement needs."
"American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $500 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties, or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."
SOURCE: American IRA, LLC