SEP IRAs and Gold for Texas Ranchers and Farmers with Lumpy Income

Q: Does the 2 of 3 farmer estimated tax rule interact with a SEP deduction?

Yes. IRS Publication 225 allows a qualified farmer with at least two-thirds of gross income from farming in the current or prior tax year to pay all the tax due by March 2 of the following year, without quarterly estimated payments. The SEP deduction claimed on that same return reduces the tax owed by the March 2 deadline.

Affiliate disclosure: we may earn a commission when a reader opens an account through links on this page. The commission has no effect on what you pay or on what we publish. We are not a financial or tax advisor; consult a licensed advisor for your situation. Last reviewed June 2026.

Quick answer

A SEP-IRA fits a Texas rancher or farmer with lumpy income because the employer contribution is optional every year. You can shelter up to 25 percent of eligible compensation, capped at 72,000 dollars for tax year 2026, in a strong cattle year and contribute zero in a drought year, all without closing the plan. IRS Notice 2025-67 sets the 2026 numbers; IRS Publication 560 walks through the self-employed math.

A SEP Gold IRA is the same account with the invested balance held as IRS-approved bullion or coins at a self-directed IRA custodian. Texas has no state personal income tax, so the deduction and any later distribution touch federal tax only. Texas residents can now store the metal in-state at the Texas Bullion Depository in Leander through Equity Trust Company as the coordinating custodian.

Short on time? The essentials

A SEP-IRA is an employer-funded traditional IRA. A Schedule F farmer or rancher operating as a sole proprietor is both employer and participant. Contributions are discretionary each year, so a lean year takes zero.
The 2026 SEP ceiling is the lesser of 25 percent of eligible compensation or 72,000 dollars per IRS Notice 2025-67. Compensation used in the calculation is capped at 360,000 dollars.
For a self-employed owner, the effective rate on net earnings from self-employment works out to about 20 percent. Publication 560 Chapter 5 has the rate table.
Deadline. The SEP contribution deadline is the due date of your federal tax return, including extensions. A sole proprietor with an approved extension has until October 15 of the following year, which lets you size the check after harvest is priced and sold.
Qualified farmers who meet the 2 of 3 gross-income test can skip quarterly estimated tax and pay in one shot by March 2, per IRS Publication 225. That interacts with the SEP deduction on the same return.
Farm income averaging on Schedule J spreads elected farm income across the 3 prior base years, which can lower the tax rate on the year the SEP deduction is claimed.
A SEP Gold IRA holds bullion under the IRC Section 408(m)(3) exception. Gold must be at least 99.5 percent fine, silver 99.9 percent, platinum and palladium 99.95 percent, with named statutory exceptions for the American Eagle coins.
Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. The SEP deduction reduces federal income only; any future distribution or Roth conversion is taxed at the federal level only.
The Texas Bullion Depository in Leander is available for IRA storage through Lone Star Tangible Assets, which received IRS Nonbank Trustee status in 2023. Equity Trust Company is the first self-directed IRA custodian coordinating IRA storage there.

On this page

Why a SEP-IRA fits lumpy farm income
The Texas wedge on the after-tax bill
The 2026 SEP ceilings for a rancher or farmer
How the 25 percent rate works on Schedule F income
Farmer-specific tax tools that stack with a SEP
Ranch and farm employees under the SEP rules
Opening a SEP Gold IRA on a Texas ranch or farm
SEP versus SIMPLE versus traditional IRA for a solo operator
In-state storage at the Texas Bullion Depository
Worked example: a Panhandle cotton farmer
Estimate the eligible amount you can roll over
When a SEP Gold IRA is a bad idea on a ranch or farm
Rancher and farmer SEP Gold IRA FAQ

Why a SEP-IRA fits lumpy farm income

Ranch and farm income does not arrive on a schedule. Cull cows sell in the fall. Wheat clears the elevator in June. A drought year cuts pasture stocking rates and stretches feed bills across the winter. Prices swing on top of that, and the tax return for a Schedule F operator can drop from a six-figure net in one year to a small loss in the next.

A SEP-IRA is built for that shape. The employer contribution is discretionary every year. IRS Publication 560 states plainly that employers do not have to make SEP contributions each year. If a contribution is made, it must follow a written allocation formula that does not discriminate in favor of highly compensated employees. In a lean year you can contribute zero and leave the plan open.

Two other features matter for lumpy income. The plan is easy to adopt on IRS Form 5305-SEP, a two-page model document you complete and keep in your records. And the funding deadline is the due date of your federal tax return, including extensions, per Publication 560. A sole proprietor with an approved extension has until October 15 of the following year to size the check after harvest is priced and sold.

That combination gives a Texas rancher or farmer a real tool. You wait until the crop is in the bin and the invoices are cashed, then you decide how much of the year to shelter. The written 5305-SEP can even be adopted as late as the same deadline for the prior plan year.

The Texas wedge on the after-tax bill

Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. That changes what a SEP deduction is actually worth to a Texas operator compared to one in a high-tax state.

A ranch or farm in Texas already books all of its net income against federal tax only. A SEP deduction reduces federal taxable income the same way it does anywhere else. There is no Texas state income tax layer to add on top of the federal number, and there will not be one on the eventual distribution either.

For a Texas resident retiring in place, that means the retirement dollar coming out of a SEP-IRA passes through the same one federal tax filter it entered under, not two. RMDs beginning at age 73 for those born 1951 through 1959 (age 75 for those born 1960 or later per SECURE 2.0) are federal only. A Roth conversion event is federal only. A 10 percent early-withdrawal additional tax under IRC Section 72(t) is federal only.

The Texas wedge does not decide whether a SEP-IRA is the right plan for your ranch. It does mean the same 20 percent effective SEP rate on reduced net earnings buys a bigger after-tax cushion for a Texas operator than for a peer in California, New York, or Iowa.

The 2026 SEP ceilings for a rancher or farmer

The 2026 numbers come from IRS Notice 2025-67 and the IRS SEP contribution limits page. The employer contribution to each eligible employee's SEP-IRA cannot exceed the lesser of 25 percent of the employee's compensation or 72,000 dollars.

The compensation used in the 25 percent calculation is itself capped at 360,000 dollars for 2026. For a self-employed owner, "compensation" is not gross farm receipts. It is net earnings from self-employment, reduced by half of self-employment tax and by the SEP contribution itself. Publication 560 Chapter 5 walks through that reduction and supplies a rate table for the self-employed.

A SEP contribution does not use up the standard traditional IRA contribution limit. You can layer up to 7,500 dollars of your own money into a personal traditional IRA for 2026, plus the 1,100 dollar catch-up if you are age 50 or older. Deductibility of that personal contribution phases out at higher income if you or a spouse are covered by a workplace retirement plan.

Horizontal bar chart of 2026 IRS retirement-account ceilings a Texas rancher or farmer age 50 and above can stack in the same tax year, all figures from IRS Notice 2025-67 and the IRS SEP contribution limits page. Traditional IRA under age 50: 7,500 dollars. Traditional IRA age 50 and above with the 1,100 dollar catch-up: 8,600 dollars. SIMPLE IRA employee limit age 50 through 59 with the 4,000 dollar catch-up: 21,000 dollars. SIMPLE IRA employee limit age 60 through 63 with the 5,250 dollar SECURE 2 catch-up: 22,250 dollars. SEP-IRA maximum dollar cap on employer contributions: 72,000 dollars. Combined SEP-IRA plus separate traditional IRA age 50 and above: 80,600 dollars. Source: IRS Notice 2025-67 (IR-2025-111) and IRS SEP contribution limits page, checked June 2026. — 2026 IRS ceilings a Texas rancher or farmer can stack. A SEP-IRA lets a self-employed owner shelter far more in a good year than a traditional IRA alone. In a lean year the same owner can contribute zero and still keep the plan open. Source: IRS Notice 2025-67 (IR-2025-111) and IRS SEP contribution limits page, checked June 2026.

How the 25 percent rate works on Schedule F income

The 25 percent SEP rate is quoted on a W-2 basis. For a Schedule F rancher or farmer with no W-2 salary, the compensation number has to be reduced first, or the deduction double-counts itself.

Publication 560 supplies a rate table that shortcuts the algebra. For a plan contribution rate of 25 percent, the self-employed rate table returns 0.2000, meaning 20 percent of your reduced net earnings from self-employment. That is why the SEP rule of thumb is often quoted as "20 percent for the self-employed."

The 72,000 dollar dollar cap for 2026 is independent of the rate. Once the derived contribution equals or exceeds 72,000 dollars, that is the ceiling regardless of income. Confirm your specific number with a CPA who has your Schedule F and Schedule SE in front of them.

Farm losses complicate this. If Schedule F reports a net loss for the year, there is no compensation to base the 25 percent on and no SEP contribution can be made for that year. The plan stays open and can be funded again in a profitable year.

Farmer-specific tax tools that stack with a SEP

A SEP deduction lands on the same 1040 as several farmer-only tax tools. Three of them interact directly with the timing question.

The 2 of 3 estimated tax rule. IRS Publication 225 covers a special rule for qualified farmers. If at least two-thirds of gross income for the current or prior tax year is from farming, the farmer can skip quarterly estimated tax and pay all the tax due by March 2 of the following year. The SEP deduction taken on that same return reduces the tax owed by that March 2 deadline.

Farm income averaging on Schedule J. A farmer or rancher engaged in a farming business can elect to average all or part of farm income by using tax rates from the 3 prior base years, per Publication 225 and the Schedule J instructions. Averaging can drop the marginal rate in a boom year, which is often the same year a SEP deduction is claimed.

Deferred payments on farmland sales. Public Law 119-21 section 70437 added IRC Section 1062, which lets a seller elect to pay the net income tax on the sale or exchange of qualified farmland to a qualified farmer in four equal annual installments, per Publication 225. The interaction with a SEP deduction is worth mapping with a CPA if a farmland sale falls in the same year.

None of these tools change SEP mechanics. They change the tax base against which the SEP deduction is applied, so they change what the deduction is actually worth.

Ranch and farm employees under the SEP rules

The SEP eligibility rules are laid out in IRC Section 408(k)(2). An employee must be age 21 or older. The employee must have worked for the business in at least 3 of the last 5 years. And the employee must have earned at least the SEP minimum compensation, which is 800 dollars for 2026 under Notice 2025-67. Union employees and nonresident aliens with no United States wages can be excluded.

Two features of that test matter on a working ranch. First, part-year seasonal hands often trip the "3 of the last 5 years" test faster than owners expect. A cowboy who works six weeks every fall for four consecutive years is counted as having worked for the business in each of those years.

Second, the uniform-percentage rule means the same contribution percentage applies to every eligible employee. Adding a 25 percent contribution for the owner also means 25 percent for every eligible hand in that year.

Family labor follows the same rules. A spouse on the payroll is an eligible employee if the SEP tests are met. Sons and daughters working the operation are employees under the labor rules, though wages paid to a child under age 18 by a parent's sole proprietorship or a spouse-only partnership are exempt from federal FICA under IRC Section 3121(b)(3)(A). That FICA exemption does not change SEP eligibility on its own; it changes the SE tax layer.

H-2A agricultural workers are typically nonresident aliens with US-source wages that are exempt from FICA and Medicare under IRC Section 3121(b)(1). Whether an H-2A worker is a nonresident alien "with no US-source wages" for SEP purposes depends on facts and circumstances. Confirm treatment with your CPA before adopting a plan if your operation runs H-2A crews.

Opening a SEP Gold IRA on a Texas ranch or farm

The order below fits a typical Texas Schedule F operator (sole proprietor or single-member LLC taxed as a sole proprietor). The paperwork labels may differ between custodians. The sequence does not.

Confirm the business form and employee census. Sole proprietor filing Schedule F is the simplest case. Add a farm partnership, an S-corp, or eligible employees on payroll and the SEP math shifts. Pull a five-year payroll history so the eligibility test can be applied to every seasonal hand.
Adopt a written SEP plan. Complete IRS Form 5305-SEP for a solo operation. Do not file the form with the IRS; keep it in your records with the executed signature and the plan effective date. Give copies to any eligible employees.
Open a self-directed SEP-IRA at a qualified non-bank trustee. Equity Trust Company, STRATA Trust Company, GoldStar Trust, and Kingdom Trust are commonly cited names in the precious-metals space. The account you open is coded as a SEP-IRA on the custodian's side, not a plain traditional IRA.
Pick a gold IRA dealer. Your dealer sources the IRS-approved bullion or coins and coordinates with the custodian on payment and shipping. Ask which self-directed IRA custodians the dealer routinely works with before signing paperwork.
Fund the SEP-IRA from the farm or ranch. The business writes a check or sends a wire to the custodian labeled as a SEP contribution for the plan year. Deadline: the due date of the federal tax return, including extensions.
Place the metal order. Once cash is in the SEP-IRA, instruct the custodian to pay the dealer for bullion or coins meeting the IRC 408(m)(3) fineness rules. The dealer ships directly to an IRS-approved depository, which for a Texas resident can include the Texas Bullion Depository in Leander through Equity Trust as the coordinating custodian.
Confirm depository entry, designate beneficiaries, and record the deduction. The depository issues a receipt to the custodian. The metal appears on your next SEP-IRA statement. Complete the beneficiary form at the custodian. On the tax side, deduct the SEP contribution on Schedule 1 line 16 of Form 1040 under the SEP rules that apply to a self-employed filer.

SEP versus SIMPLE versus traditional IRA for a solo operator

A Schedule F operator with no employees usually has three self-employed retirement accounts to compare: a SEP-IRA, a SIMPLE IRA, and a plain traditional IRA. The table below covers the 2026 headline numbers.

2026 self-employed retirement account comparison, no employees
Account	2026 employee limit	2026 employer limit	Age 50+ catch-up	Bullion inside?
Traditional IRA	Not applicable	Not applicable	1,100 dollars (owner personal contribution)	Yes, self-directed traditional IRA
SEP-IRA	Not applicable (employer-only plan)	Up to 25 percent of eligible compensation, capped at 72,000 dollars	Not applicable at the plan level	Yes, self-directed SEP-IRA
SIMPLE IRA	17,000 dollars	Match up to 3 percent of compensation, or 2 percent nonelective	4,000 dollars ages 50 through 59; 5,250 dollars ages 60 through 63	Yes, self-directed SIMPLE IRA

Sources: IRS Notice 2025-67 (IR-2025-111), IRS SEP contribution limits page, IRS SIMPLE IRA plan FAQs, IRS traditional IRA contribution limits page. Bullion eligibility depends on the account being coded as self-directed at a qualified non-bank trustee under IRC Section 408(m)(3). Checked June 2026.

For a rancher or farmer with variable income and no employees, the SEP wins on ceiling and on year-to-year flex. A SIMPLE IRA can win on lower minimum contribution when income is thin, since the employer match is small. A solo 401(k) also enters the comparison at higher income, especially for owners over 50; that plan sits outside this page.

In-state storage at the Texas Bullion Depository

The Texas Bullion Depository is an agency of the State of Texas, authorized by HB 483 signed by Governor Greg Abbott on June 12, 2015. It has operated since 2017 on a purpose-built campus in Leander, Texas, north of Austin, under a contract with Lone Star Tangible Assets, referred to as LSTA on the depository website.

The depository stores gold, silver, platinum, palladium, and rhodium. LSTA received IRS approval as a nonbank trustee in 2023, opening the door to storing IRA assets in the depository. According to the depository's IRA Storage page, Equity Trust Company is the first custodian working with the Texas Bullion Depository since LSTA obtained IRS Nonbank Trustee status from the Department of Treasury.

The practical flow for a Texas SEP Gold IRA owner is straightforward. Your dealer coordinates with Equity Trust Company as the self-directed IRA custodian to route delivery to the Texas Bullion Depository. Storage fees for IRA assets are typically negotiated between the custodian, the dealer, and LSTA, per the depository's own statement. Confirm current fees and dealer requirements before signing.

The Texas Bullion Depository is the only state-administered precious-metals depository in the United States, per the depository website. That is a distinguishing feature, though it does not change the federal SEP mechanics or the eligibility of the metal itself. Modern Redbacks, the state's own small denomination bullion, do not qualify for holding in an IRA per the depository's IRA Storage page.

Worked example: a Panhandle cotton farmer

Worked example

Earl, age 58, farms 1,200 acres of dryland cotton and wheat outside Lubbock as a sole proprietor. His 2026 Schedule F, after all farm expenses and crop insurance recoveries, shows 165,000 dollars in net profit. He has no employees. He wants to open a SEP Gold IRA and contribute the maximum for tax year 2026.

Step one: figure net earnings from self-employment. His self-employment tax on 165,000 dollars of Schedule F net profit works out to about 23,318 dollars under the standard SE tax formula. Half of that, 11,659 dollars, is deductible on Form 1040. His reduced net earnings from self-employment are 165,000 minus 11,659, or 153,341 dollars.

Step two: apply the SEP self-employed rate table from IRS Publication 560. At a 25 percent plan rate, the table returns 0.2000. Earl's maximum SEP contribution for 2026 is 20 percent of 153,341, or roughly 30,668 dollars.

Step three: sanity-check against the ceilings. His derived contribution is far below the 72,000 dollar dollar cap and well below the compensation cap. Both ceilings clear.

Step four: layer the personal traditional IRA contribution. Earl is 58, so he can also contribute 7,500 dollars plus the 1,100 dollar catch-up to a personal traditional IRA, for another 8,600 dollars. His total 2026 retirement contribution potential is roughly 39,268 dollars.

Step five: qualified farmer estimated tax. More than two-thirds of Earl's 2026 gross income is from farming. He qualifies for the special estimated tax rule in Publication 225 and can pay all the tax due for 2026 by March 2, 2027, without quarterly estimated payments. The SEP deduction reduces the amount owed by that March 2 date.

Step six: farm income averaging. If Earl's 2023 through 2025 farm income was lower, he can elect to average all or part of his 2026 elected farm income across those 3 base years on Schedule J. The election can drop the marginal rate applied to the year of the SEP deduction.

Texas result. Zero state income tax on the SEP deduction, zero state income tax on any future distribution. Earl stores the metal at the Texas Bullion Depository in Leander through Equity Trust as the coordinating custodian. Confirm your own numbers with a CPA before writing the check.

Estimate the eligible amount you can roll over

Many ranchers and farmers already have retirement accounts elsewhere from prior W-2 jobs, from a spouse's plan, or from a farm-cooperative pension. If any of that could move into a SEP Gold IRA, the rollover eligibility question comes first. The tool below covers the common source-plan cases. It is a triage tool, not tax or legal advice.

Can you roll your account into a gold IRA? Eligibility checker

Most retirement money can move into a gold IRA once it is an eligible rollover distribution. Pick your account and situation for a general answer. Always confirm the specifics with your plan administrator or custodian.

Account type Your situation

General guidance only, not tax or financial advice. Eligibility depends on your specific plan document and IRS rules; confirm with your plan administrator and a tax advisor. A direct trustee-to-trustee transfer avoids the 60-day rule and 20% withholding.

Picking a company that explains every fee up front is the first step. Get the free gold IRA company checklist.

Your next step

If a SEP Gold IRA looks like a fit for your operation, the highest-leverage action is to vet the dealer and the custodian before signing plan documents. Augusta Precious Metals is our primary affiliate partner and publishes a free gold IRA company checklist built for that vetting step.

Get the Augusta Precious Metals gold IRA company checklistSponsored link. Use the checklist to evaluate any dealer or custodian you call about a SEP Gold IRA, including Augusta itself. Past performance is not a guarantee of future results.

When a SEP Gold IRA is a bad idea on a ranch or farm

A SEP Gold IRA is not the right move for every Texas rancher or farmer. The failure modes are repeatable. We list them here with no CTA attached.

You run year-round hired labor and have not modeled the uniform-percentage rule. Adding a 25 percent contribution for the owner also means 25 percent for every eligible employee in that year. On a payroll with two full-time hands earning 45,000 dollars each, a 25 percent owner contribution triggers a 22,500 dollar contribution obligation for the labor line before you write the owner check. Model the full payroll.

You need cash-flow flex before age 59 and a half. Participant loans are not permitted in a SEP-IRA. An in-service withdrawal counts as a taxable distribution and, if you are under 59 and a half, is subject to the 10 percent additional tax under IRC Section 72(t) unless an exception fits.

Your Schedule F is showing a loss year. A SEP contribution requires compensation to base the 25 percent on. A net-loss year means no SEP contribution and no deduction, though the plan stays open for future years.

Your first-year balance is small and the fee stack is flat. A 12,000 dollar first-year SEP with 250 dollars of custodian fees and 150 dollars of storage carries a 3.33 percent annual fee drag on operating cost alone, before any dealer markup. Plan for the balance to scale up or postpone.

The dealer is steering you into premium or proof coins. Wide markups on graded coins are a common reason a SEP Gold IRA underperforms the broader gold market. Common bullion coins and bars carry tighter spreads over spot.

You want the metal in the ranch safe. A SEP-IRA cannot hold metal at your home or ranch. McNulty v. Commissioner (157 T.C. No. 10, November 18, 2021) treated home storage as a full distribution and triggered the 10 percent penalty for taxpayers under age 59 and a half.

You have not confirmed your Schedule SE and rate-table numbers. A SEP contribution above the derived ceiling is an excess contribution. IRC Section 4973 imposes a 6 percent excise tax on the excess each year it stays in the account.

Rancher and farmer SEP Gold IRA FAQ

Can a Schedule F farmer open a SEP Gold IRA?

Yes. The IRS SEP plan page confirms that a business of any size, including a self-employed individual, can establish a SEP. A sole proprietor filing Schedule F qualifies as the employer and the participant. The account is a self-directed traditional IRA coded as a SEP by the custodian. Adopt Form 5305-SEP, open the SEP-IRA at a qualified non-bank trustee, and fund it as the employer.

What is the 2026 SEP contribution limit for a Texas rancher or farmer?

The 2026 dollar cap is 72,000 dollars, per IRS Notice 2025-67. The percentage cap is 25 percent of eligible compensation. For a self-employed owner, compensation is net earnings from self-employment reduced by half of SE tax and by the SEP contribution itself. Under the Publication 560 rate table, this yields an effective ceiling of about 20 percent on reduced net earnings. Compensation used in the calculation is capped at 360,000 dollars.

Can I skip a SEP contribution in a drought year?

Yes. IRS Publication 560 confirms that employers are not required to make SEP contributions every year. A rancher or farmer can contribute in a strong year and skip in a drought year. The plan stays open. If a contribution is made in any year, the written allocation formula must be followed for all eligible employees.

Does the 2 of 3 farmer estimated tax rule interact with a SEP deduction?

Yes. Publication 225 allows a qualified farmer with at least two-thirds of gross income from farming in the current or prior tax year to pay all the tax due by March 2 of the following year, without quarterly estimated payments. The SEP deduction claimed on that same return reduces the tax owed by the March 2 deadline. Confirm your farming-income percentage with a CPA before relying on the rule.

Can farm income averaging on Schedule J apply to a year I take a SEP deduction?

Yes. Schedule J lets a farming business average elected farm income across the 3 prior base years, per Publication 225 and the Schedule J instructions. The averaging election can drop the marginal rate on a boom year, which is often the same year the SEP deduction is claimed. The two elections apply to the same 1040 in the same tax year.

Does Texas tax a SEP-IRA distribution?

No. Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. A future SEP-IRA distribution, a Roth conversion, or an early withdrawal is taxed at the federal level only. The 10 percent federal additional tax under IRC Section 72(t) still applies to early distributions before age 59 and a half unless an exception fits.

Can my SEP Gold IRA be stored at the Texas Bullion Depository?

Yes, through a supporting custodian. Lone Star Tangible Assets, the state-selected operator of the Texas Bullion Depository in Leander, received IRS Nonbank Trustee status in 2023. Equity Trust Company is the first self-directed IRA custodian coordinating IRA storage with the Texas Bullion Depository. Confirm the current process, fees, and dealer requirements with your custodian before signing. Source: texasbulliondepository.gov IRA Storage page, checked June 2026.

Are Texas Lone Star or Texas Modern Redback coins allowed inside a SEP Gold IRA?

The 2026 Texas Lone Star Commemorative gold coin is described by the depository as .9999 fine gold. It would meet the general 99.5 percent fineness rule for gold under IRC Section 408(m)(3). Eligibility inside an IRA also depends on custodian acceptance. Texas Modern Redbacks do not qualify for holding in an IRA per the Texas Bullion Depository's IRA Storage page. Confirm coin-level eligibility with your custodian before purchase.

Can I roll an old 401(k) or traditional IRA into a SEP Gold IRA?

Yes. IRS Publication 560 confirms that SEP-IRAs can receive rollovers from most other IRAs and qualified plans. Direct rollovers preserve tax deferral and avoid the 10 percent default withholding that IRC Section 3405 applies to indirect rollovers. The receiving account remains a SEP-IRA on the custodian's records.

Sources

Internal Revenue Service. Simplified Employee Pension Plan (SEP). irs.gov SEP plan sponsor page. Checked June 2026.
Internal Revenue Service. SEP contribution limits (including grandfathered SARSEPs). irs.gov SEP contribution limits page. Checked June 2026.
Internal Revenue Service. COLA increases for dollar limitations on benefits and contributions. irs.gov COLA page (Notice 2025-67 / IR-2025-111). Checked June 2026.
Internal Revenue Service. Publication 560, Retirement Plans for Small Business. irs.gov/publications/p560. Checked June 2026.
Internal Revenue Service. Publication 225, Farmer's Tax Guide. irs.gov/publications/p225. Checked June 2026.
Internal Revenue Service. Form 5305-SEP, Simplified Employee Pension. irs.gov Form 5305-SEP PDF. Checked June 2026.
Internal Revenue Service. Instructions for Schedule J (Form 1040), Income Averaging for Farmers and Fishermen. irs.gov Instructions for Schedule J. Checked June 2026.
Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions. irs.gov Rollovers page. Checked June 2026.
Internal Revenue Code Section 408(k). Simplified Employee Pension rules. uscode.house.gov. Checked June 2026.
Internal Revenue Code Section 408(m). Collectibles rule and bullion exception. uscode.house.gov. Checked June 2026.
Internal Revenue Code Section 72(t). Additional 10 percent tax on early distributions. uscode.house.gov. Checked June 2026.
Internal Revenue Code Section 3121(b)(3)(A). FICA exemption for wages paid by a parent to a child under 18. uscode.house.gov. Checked June 2026.
Internal Revenue Code Section 4973. Excise tax on excess IRA contributions. uscode.house.gov. Checked June 2026.
Public Law 119-21, Section 70437. Deferred payment election on the sale of qualified farmland (IRC Section 1062). congress.gov. Checked June 2026.
United States Tax Court. McNulty v. Commissioner, 157 T.C. No. 10 (November 18, 2021). Home storage of IRA metals treated as a full distribution.
Texas Bullion Depository. IRA Storage Services. texasbulliondepository.gov/ira-storage. Checked June 2026.
Office of the Texas Comptroller of Public Accounts. Texas Bullion Depository overview. comptroller.texas.gov. Checked June 2026.
Texas Constitution, Article 8, Section 24. Prohibition on a state personal income tax. statutes.capitol.texas.gov. Checked June 2026.

By the Harry’s Coins Editorial team. Last reviewed June 2026.