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Are you a small business owner or employee of a small business looking for retirement plans that offer significant tax advantages and more flexibility than traditional employer-sponsored plans? 

In this guide, we’re going to explore the Gold SEP IRA - an alternative investment option available for employees of small businesses who want to invest in precious metals while also reaping similar tax benefits to a traditional SEP. 

Gold SEP IRAs provide unmatched potential growth opportunities, a wide variety of assets, no contribution limits, immediate contributions eligibility, and much more, but is it right for you, your employees, and your small business? 

Read on.

How do SEP Gold IRAs work?

An SEP (Simplified Employee Pension) is a form of self-directed individual retirement account, and gold SEPs work the same way.

how do gold sep IRAs work

With a SEP Gold IRA, you can invest in physical precious metals and enjoy the same tax-deferred benefits of a traditional SEP IRA. Gold SEP IRAs are a form of Self-directed IRAs (SDIRA) which allow you to invest in alternative assets for retirement

What can you purchase in a SEP Gold IRA?

In a SEP Gold IRA, you can purchase coins, bars, and rounds of gold, silver, platinum, or palladium. You can also purchase other alternative assets like art, real estate, and more - but for the purposes of this article, we’ll focus on gold and other precious metals.

The IRS secures the funds used for these purchases, and you can invest without incurring any taxes. A SEP gold IRA is a great way to diversify your retirement portfolio and achieve long-term financial security.

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  • Highest rated, most trusted gold IRA company
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How does it work for employees and how do they set up an account?

SEPs are usually best for self-employed individuals who file a Schedule-C, or small business owners who are expecting to be in a low tax bracket during retirement. They’re also great if you’re looking to max out contributions, as SEPs have a much higher contribution limit. 

setup a gold sep ira account

Investing in a SEP gold IRA begins with setting up an account with an approved trustee or custodian. 

This entity will be responsible for handling all aspects of the account, including managing transactions and ensuring that taxes are paid properly.

Once your account is established, you can select which precious metal products you want to invest in, such as gold coins or bars. Employees do not have to pay taxes on the money contributed by their employer until they make withdrawals from the account in retirement.

You must find an approved dealer from which you can purchase the metals. This dealer must be a verified Commodity Futures Trading Commission member and should be insured for any losses. Once your metals are purchased, they will be stored in your approved depository. The dealer or custodian occasionally covers the storage costs, but not always.

Our recommended gold IRA providers

Here are the best Gold IRA providers in the space right now.

Augusta Precious Metals - Best For High Net worth Individuals.

If you have $50,000 or more to invest, Augusta might be your best bet. You won’t qualify to work with Augusta for your retirement with less than $50K in a current account, or cash on hand. They specialize in a high-end service operation which will cater to your needs and can help you find the best investing products.

In our Augusta review, we detail everything you need to know about the company before working with them. 

Goldco - Best For Medium-Sized Accounts

If you have less than $25K to invest, Goldco is not for you, but if you’re comfortable with that initial account contribution limit, Golco can be an excellent gold retirement account partner.

With a great selection, solid customer service, and great reviews online and with rating companies, Goldco is worth a serious look

Related: Goldco vs Augusta

American Hartford Gold - Best For Smaller Accounts

A relative newcomer to the Gold IRA scene, American Hartford Gold has nonetheless made quite a name for themselves. If you want to start your gold SEP with a smaller initial contribution, AHG might be the right choice for you.

With excellent ratings, great customer service, and a solid inventory of gold and precious metals products, they’re definitely worth your attention.

Advantages of SEP gold IRAs vs other retirement accounts

SEP Gold IRA accounts have several unique advantages: 

  1. Firstly, the self-directed nature of SEP IRAs grants investors a higher level of control over their investments, as they can decide on the specific type of physical gold or other precious metals to invest in and when to execute buy or sell transactions. 
  2. This adaptability allows investors to capitalize on market fluctuations and make more knowledgeable investment choices.
  3. SEP Gold IRA accounts have different tax advantages than other IRAs. For example, contributions can be deducted from your taxes. 
  4. Finally, SEP Gold IRAs provide more diversification advantages than other traditional IRAs. By holding physical gold in their retirement savings portfolio, investors can safeguard themselves against inflation and market instability. This diversification can decrease the overall risk of a portfolio, which is particularly beneficial during times of economic insecurity.

What is the difference between a SEP IRA and a Traditional IRA?

A SEP IRA (Simplified Employee Pension Individual Retirement Account) is an employer-sponsored retirement pension plan allowing employers to contribute to employee retirement accounts. This type of account is similar to a traditional individual retirement account (IRA), but there are some key differences.

sep ira vs traditional ira

The contribution limits are the primary differences between a SEP IRA and a Traditional IRA. A SEP IRA allows employers to contribute up to 25 per cent of an employee's annual salary or $57,000 (whichever is less). Traditional IRAs have lower contribution limits and do not allow employer contributions.

Another significant distinction between a SEP IRA and a Traditional IRA is the tax implications of contributions. In a SEP IRA, employer contributions are not subject to individual taxation, making it an attractive option for employees who wish to save for retirement without incurring taxable income taxes on contributions.

An important difference between a SEP IRA and a Traditional IRA is that with a SEP IRA, employees must be offered the same contribution percentage for all eligible employees. This means an employer must provide the same retirement benefits to all eligible employees, regardless of seniority or salary level.

With traditional IRAs, contributions are made individually, so employers can determine which employees get higher or lower contributions.

To summarize, a SEP IRA is a retirement plan sponsored by an employer that offers higher contribution limits and tax benefits compared to traditional IRAs. However, it mandates employers to offer the same level of SEP IRA contributions to all eligible employees.

Traditional IRAs are personal accounts with lower contribution limits and no employer participation. Employers are not required to offer equal contributions or benefits to all eligible employees.

Both SEP IRA and Traditional IRA are suitable retirement savings options, and it is crucial to weigh the distinctions between them to make an informed decision on which one is most suitable for your needs.

Is a SEP Gold IRA worth it?


Yes, Investors and retirees seeking to diversify their portfolios may find a SEP Gold IRA a desirable choice, as it potentially provides both the opportunity for capital growth and protection against losses caused by stock market volatility or inflation. 

A SEP Gold IRA presents a superb chance to invest in an asset that has stood the test of time and is still commonly used as a safe haven against stock market volatility and inflation. Gold's enduring value makes it an appealing choice for long-term investors, as it maintains its worth over time

About the author 

Sam Rexford

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