What are SEP & SIMPLE IRA's? We discuss the difference between the two, who they would most benefit, and what the rules are for both SEP & SIMPLE IRA accounts. SEP Rules: If you choose to contribute to your retirement plan, you have the ability to select the percentage of contribution for any given year (0-25% of earned income) for both yourself and your staff.

The only requirement is that the contribution percentage for a given year must be the same for each employee. If you would like a self-directed SEP and your current retirement plan does not allow self-direction, you may transfer all or part of the funds to a Mountain West IRA self-directed SEP so that you may choose your own investments.

Why consider a Mountain West IRA Self-Directed SEP?

• A Mountain West IRA self-directed SEP does not have the start-up and operating costs of a conventional employer plan.
• Allows for tax-deductible contribution. - You and your employees can have the flexibility to self-direct your retirement funds into real estate, mortgages, and other alternative investments.
• You are: a sole proprietor, independent contractor, self-employed, partner, corporation, or S corporation
• Your business pays no taxes on investment earnings
• You do not want to be locked into making contributions every year
• You would like a plan with low administrative costs
• You are looking for a wider range of investment choices
• 2022 SEP Contribution Limits: Employer Contribution. Up to 25% of compensation/ Max. of $61,000

SIMPLE IRA (Savings Incentive Match Plan for Employees) Tax advantages for you & an IRA for your employees.

• A Savings Incentive Match Plan for Employees (SIMPLE IRA) is an IRA-based plan that gives employers an easy way to make contributions toward the retirement of their employees and themselves. This type of plan is designed for small businesses with 100 employees.
• All contributions are made directly to the IRA account that has been established for each employee (SIMPLE IRA). Eventual distributions are taxed as ordinary income.
• Also, with a Mountain West IRA self-directed SIMPLE IRA, you can invest your retirement funds in real estate, notes, and many other alternative investments.

You May Want to Consider a Mountain West IRA Self-Directed SIMPLE IRA If...

• You have a company with less than 100 employees.
• You are looking for a plan with low start-up and administrative costs.
• You want a plan that provides you and you employees with a simplified way to contribute toward retirement.
• You need to reduce business taxes.
• You want a plan that can help you attract and retain quality employees.
• You are looking for a plan that is easy to set up and run.
• You want employees to contribute through convenient payroll deductions.
• You would like flexibility in how much to contribute to the employee's plan.
• You are looking for a wider range of investment choices including real estate, raw land, 1st trust deeds, LLCs, and more.

2022 SIMPLE IRA Contribution Limits:

• Employee Deferral, Under 50: $14,000- Employee Deferral, 50 and Over: $17,000
• Employer can elect from two different contribution methods.

Check with your employer which option they have chosen. Employer contributions are in addition to your elective deferrals.

Contact us today to transfer to a Mountain West IRA self-directed IRA!