For self-employed individuals, freelancers, independent contractors, and small business owners, the Simplified Employee Pension — better known as the SEP IRA — represents one of the most powerful retirement savings vehicles in the tax code. When structured as a self-directed account, a SEP IRA can hold the same IRS-approved physical precious metals as a standard Gold IRA. The result: an account combining the enormous contribution capacity of a SEP with the inflation-hedging potential of physical gold.
SEP IRA Basics
A SEP IRA is an employer-sponsored retirement plan that any self-employed person or small business can establish. Contributions are made by the employer (for a sole proprietor, that's you acting as your own employer) and are immediately 100% vested. Contributions are tax-deductible as a business expense. Growth within the account is tax-deferred. Distributions in retirement are taxed as ordinary income — exactly like a traditional IRA.
2025 SEP IRA Contribution Limits
The 2025 contribution limit for a SEP IRA is the lesser of: (1) 25% of eligible compensation, or (2) $70,000. For self-employed individuals, the effective maximum contribution rate is approximately 20% of net self-employment income (because the calculation is circular — you're deducting the SEP contribution from the income used to calculate the contribution). At a practical level, a self-employed person with $200,000 in net income can contribute roughly $37,140 to a SEP IRA for 2025. At $300,000, approximately $55,730. The maximum $70,000 contribution is available once net income reaches approximately $350,000.
Setting Up a SEP Gold IRA
Three steps: First, choose a self-directed IRA custodian that accepts SEP accounts and supports precious metals. Second, complete IRS Form 5305-SEP (a model SEP agreement) or a similar custodian-specific adoption agreement — a simple one-page form that officially establishes the plan. Third, make your annual contribution before the tax filing deadline including extensions. For self-employed individuals on extension, this allows SEP contributions as late as October 15 of the following year — a significant advantage over 401(k) plans, which must be established by December 31.
No Annual Filing Requirements
Unlike a SIMPLE IRA or solo 401(k), a SEP IRA requires no annual IRS filing (no Form 5500), no plan documents, no discrimination testing, and no actuarial calculations. The only recurring obligation is making the contribution and filing it on your tax return as a business deduction.
Precious Metals Eligible for SEP Gold IRAs
All IRS-eligible precious metals that qualify for a standard Gold IRA also qualify for a SEP Gold IRA: American Gold Eagles, American Gold Buffalos, Canadian Gold Maple Leafs, Austrian Gold Philharmonics, and gold bars of at least 99.5% purity from LBMA-accredited refiners. All metals must be stored at an IRS-approved depository.
SEP Gold IRA vs. Solo 401(k)
The solo 401(k) allows slightly higher contributions for high earners, supports Roth contributions, and allows plan loans. However, it requires an annual Form 5500 filing once assets exceed $250,000 and must be established by December 31. The SEP IRA is simpler, can be established up until tax filing, and is sufficient for most self-employed investors. Both can hold physical gold through a self-directed structure.
Universal Gold Group works with self-employed investors to establish SEP Gold IRAs efficiently and compliantly. Contact us to speak with a specialist or visit our Gold IRA overview.