Opening a SEP Gold IRA for the Self-Employed
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Short on time? The essentials
- A SEP-IRA is an employer-funded traditional IRA. For a sole proprietor or single-member LLC, you are the employer and the participant. IRS Publication 560 has the rules.
- The 2026 SEP ceiling on employer contributions 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. The math is in Publication 560 Chapter 5 and uses the rate table for self-employed individuals.
- An eligible employee must have reached age 21, worked for you in 3 of the last 5 years, and earned at least 800 dollars in 2026. You must contribute the same percentage to every eligible employee's SEP-IRA.
- All SEP contributions are 100 percent vested from day one. Participant loans are not allowed. In-service withdrawals count as taxable distributions.
- Deadline: contribute by the due date of your business federal tax return, including extensions. A 5305-SEP itself can be adopted as late as the same deadline for the plan year.
- The 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. Distributions, RMDs, and any 10 percent early-withdrawal penalty under IRC Section 72(t) are federal 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 custodian coordinating IRA storage there.
On this page
- What a SEP-IRA is, and who can open one
- Turning a SEP-IRA into a SEP Gold IRA
- The 2026 SEP contribution ceiling
- The self-employed math: 25 percent of what, exactly
- Opening a SEP Gold IRA in seven steps
- Fee stack on a SEP Gold IRA
- What Texas changes
- Worked example: a San Antonio consultant
- Estimate the fee drag on your balance
- When a SEP Gold IRA is a bad idea
- SEP Gold IRA FAQ
What a SEP-IRA is, and who can open one
A Simplified Employee Pension is an employer-funded traditional IRA arrangement created by Congress in 1978 and codified at IRC Section 408(k). The account itself is a traditional IRA, one per participant. The plan sits on top and specifies who gets a contribution and how much.
A business of any size can adopt one, and that includes a sole proprietor with zero employees. The IRS SEP plan page states plainly that a self-employed individual can establish a SEP. Only the employer contributes; the employee cannot make elective deferrals into a modern SEP-IRA.
Since SECURE 2.0, a SEP-IRA can also accept designated Roth contributions if the plan document permits. Most model plans (Form 5305-SEP) still funnel contributions into a traditional IRA, which is the default assumption on this page. Confirm the Roth option separately with your custodian if that route is relevant.
Eligibility for participation follows IRC Section 408(k)(2). An employee must be age 21 or older. They must have worked for the business in at least 3 of the last 5 years. They must also 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.
The employer contribution rate must be uniform for every eligible employee. If you contribute 15 percent of your own compensation, every eligible employee gets 15 percent of theirs. Employees are always 100 percent vested from day one.
Turning a SEP-IRA into a SEP Gold IRA
A SEP Gold IRA is not a separate plan type. It is a SEP-IRA whose invested balance is held as physical precious metals inside a self-directed IRA. The paperwork sequence and the tax treatment are the same as any SEP-IRA.
The wrapper matters. IRC Section 408(m) forbids collectibles inside an IRA. Bullion and specific coins meeting a fineness threshold are carved out as a statutory exception under IRC 408(m)(3). To hold physical metal, the SEP-IRA must be self-directed at a qualified non-bank trustee or a bank trustee that accepts precious-metals holdings.
The metal itself has to be held by an IRS-approved depository. You cannot take personal possession. The 2021 Tax Court decision in McNulty v. Commissioner treated home storage of IRA metals as a full distribution and triggered the 10 percent penalty. Storage rules apply the same to a SEP Gold IRA as to any other precious-metals IRA.
Once the account is open and funded, the flow is simple. Your business contributes cash to the SEP-IRA. The custodian pays your chosen dealer for approved bullion or coins. The dealer then ships the metal to the depository under the custodian's name for your benefit.
The 2026 SEP contribution ceiling
The 2026 numbers come straight from IRS Notice 2025-67 and the SEP contribution limits page.
The employer contribution to each eligible employee's SEP-IRA cannot exceed the lesser of two ceilings. The first ceiling is 25 percent of the employee's compensation. The second ceiling is a fixed dollar amount, which is 72,000 dollars for tax year 2026, up from 70,000 dollars for 2025.
The compensation used in the 25 percent calculation is itself capped at a maximum. For 2026, the SEP maximum compensation is 360,000 dollars. Any compensation above that line is ignored for the SEP contribution math.
A SEP contribution does not use up the standard traditional IRA contribution limit. You can also make a personal traditional IRA contribution of up to 7,500 dollars, plus the 1,100 dollar catch-up if you are age 50 or older, into the same SEP-IRA account or a separate traditional IRA. Deductibility of the personal contribution phases out at higher income if you are covered by a workplace retirement plan.
The self-employed math: 25 percent of what, exactly
The 25 percent SEP rate is stated on a W-2 basis. For a self-employed owner with no W-2 salary, the compensation number has to be reduced first, or the deduction double-counts itself.
IRS Publication 560 walks through the calculation in Chapter 5. Compensation used in the SEP formula is net earnings from self-employment, minus one-half of self-employment tax, minus the SEP contribution itself. Because the contribution appears on both sides of the equation, the effective ceiling on net earnings drops from 25 percent to about 20 percent.
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 you often see the SEP rule of thumb quoted as "20 percent for the self-employed."
The 72,000 dollar dollar cap for 2026 is independent of the rate calculation. Once your 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 SE in front of them.
Opening a SEP Gold IRA in seven steps
The order below fits a typical solo owner (Schedule C, single-member LLC, or S-corp with self-employment income routed through the owner). The paperwork labels may differ between custodians; the sequence does not.
- Adopt a written SEP plan. For most solo owners, the simplest path is IRS Form 5305-SEP, a two-page model plan you complete but do not file with the IRS. If you already run another qualified plan or want a calendar year different from your business year, you cannot use 5305-SEP and will need a prototype or individually designed document from your custodian.
- Notify eligible employees. Give each eligible employee a copy of the executed 5305-SEP and its instructions, along with the participation requirements and the allocation formula. For a true one-person business, this step is procedural but must still be documented for the file.
- 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 your custodian on payment and shipping. Ask the dealer which self-directed IRA custodians they routinely work with before you sign paperwork.
- Fund the SEP-IRA from the business. 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 business federal income 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 IRC 408(m)(3) fineness rules. The dealer ships directly to an IRS-approved depository. You do not touch the metal.
- 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 your business return under the SEP rules that apply to your entity type.
Fee stack on a SEP Gold IRA
A regular SEP-IRA at a brokerage usually carries no annual account fee; the broker earns from fund expense ratios and spreads. A SEP Gold IRA is a self-directed IRA holding physical metal, so several stacked fees appear. The table below covers the categories you will see on a custodian schedule.
| Fee | What it pays for | How it is usually charged |
|---|---|---|
| SEP-IRA setup fee | Account opening and initial SEP paperwork review at the custodian | One-time flat fee |
| Annual custodian fee | Recordkeeping, Form 5498 filing, IRS reporting on SEP contributions | Flat annual fee or tiered by account value |
| Annual storage fee | Depository vault space, insurance, audits | Flat annual fee, sometimes scaled by account value |
| Dealer markup on metal | Spread between spot price and the price you pay at the dealer | Embedded in the metal price; rarely itemized |
| Wire and shipping fees | Incoming wire from the business, dealer-to-depository shipping | Per-event flat fee |
| Buyback spread | Difference between dealer bid and current spot when you sell | Only when you sell back to the dealer |
| Roth-conversion fee | Some custodians charge a small conversion fee if you convert to Roth | Per-event flat fee (only if applicable) |
Sourced from public fee schedules at Equity Trust, STRATA Trust, GoldStar Trust, Kingdom Trust, Delaware Depository, and the Texas Bullion Depository. Confirm current pricing with each provider before signing. Checked June 2026.
Dealer markup is the widest line in that stack. Common bullion coins and bars carry tight spreads over spot. Proof coins and premium or exclusive coins carry markups that can be several times higher. Contributions look great on the tax return but stall the year they are absorbed by a 25 to 35 percent coin premium.
What Texas changes
Federal SEP rules apply the same in every state. What Texas changes is the wrapper around them.
Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. A future SEP-IRA distribution, a required minimum distribution, or a Roth conversion event is taxed at the federal level only. There is no Texas state income tax layer to add.
Texas also offers an in-state storage option that no other state runs. 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 (LSTA).
The depository accepts gold, silver, platinum, palladium, and rhodium. LSTA received IRS approval as a nonbank trustee in 2023, which opened the door to storing IRA assets at the depository. Equity Trust Company is the first self-directed IRA custodian coordinating with the Texas Bullion Depository for precious-metals IRAs.
The practical takeaway for a self-employed Texan is straightforward. The federal SEP contribution math does not change at the state line. Texas keeps the state income tax bill at zero on the contribution and on later distributions. And the metal can be held inside Texas at a state-audited depository rather than out of state. None of that decides whether the SEP itself fits your business.
Worked example: a San Antonio consultant
Estimate the fee drag on your balance
The value of a SEP Gold IRA depends on the balance you build. A flat annual fee stack that is invisible on a 200,000 dollar balance can compound painfully on a 20,000 dollar first-year account. The calculator below estimates the annual drag on the amount you enter, using representative custodian and storage ranges. It is a triage tool, not tax or investment advice.
Texas gold IRA fee-drag calculator
Texas gold IRAs charge mostly flat dollar fees (setup, annual custodian, storage). Flat fees take a much bigger bite out of a small account than a large one. Enter your numbers to see the drag.
Estimate only. Fee amounts vary by provider and are often not published; enter figures you confirm in writing. This tool ignores metal price changes and the dealer spread, which also affect returns. Not financial advice.
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 business, the highest-leverage action is to vet the dealer and the custodian before signing a plan document. 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 it 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
A SEP Gold IRA is not the right move for every self-employed owner. The failure modes are repeatable. We list them here with no CTA attached.
You have common-law employees you have not planned for. The SEP rule forces the same contribution percentage for every eligible employee. Adding a 25 percent contribution for the owner also means 25 percent for every eligible employee in that year. Model the full payroll before adopting.
You expect cash-flow needs 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 age 59 and a half, is subject to the 10 percent additional tax under IRC Section 72(t) unless an exception applies.
You want employee elective deferrals. A modern SEP-IRA does not accept employee salary deferrals. If your goal is for the owner-employee to shelter more of a lower base salary, a solo 401(k) or a SIMPLE IRA can outperform a SEP at similar income. Compare all three before deciding.
Your balance in year one is small and your fee stack is flat. A 15,000 dollar first-year SEP with 250 dollars of custodian fees and 150 dollars of storage carries a 2.67 percent annual fee drag on operating cost alone, before any dealer markup. Plan for the balance to scale up quickly or postpone.
The dealer is steering you into premium or proof coins. Wide markups on graded coins are the most common way a SEP Gold IRA underperforms. Common bullion coins and bars carry tighter spreads over spot.
You want the metal at home. A SEP-IRA cannot hold metal at your house. McNulty v. Commissioner (T.C. 2021) treated home storage as a full distribution, plus the 10 percent penalty if under age 59 and a half.
You have not confirmed your Schedule SE numbers. A SEP contribution that exceeds 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. Confirm with a CPA before writing the check.
SEP Gold IRA FAQ
Can a sole proprietor 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. The account itself is a self-directed traditional IRA coded as a SEP by the custodian. You adopt a written plan (usually 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 self-employed owner?
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 minus half of self-employment tax minus the SEP contribution itself, which yields an effective ceiling of about 20 percent on reduced net earnings. Publication 560 Chapter 5 walks through the rate table.
Can I still contribute to a traditional IRA if I already max the SEP?
Yes. A SEP contribution does not use up the standard IRA contribution limit. For 2026 you can add up to 7,500 dollars to a traditional IRA (or the same SEP-IRA account) plus the 1,100 dollar catch-up if you are age 50 or older. Deductibility of that personal contribution can phase out if you or a spouse are covered by a workplace retirement plan.
When is the deadline to fund a SEP Gold IRA?
The SEP contribution deadline is the due date of your business federal income tax return for the year, including extensions. A sole proprietor with an approved extension has until October 15 of the following year. The written 5305-SEP can also be adopted as late as that same deadline for the prior plan 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 there. Confirm the current process, fees, and dealer requirements with your custodian before signing. Source: texasbulliondepository.gov IRA Storage page, checked June 2026.
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.
Are gold and silver American Eagle coins allowed inside a SEP Gold IRA?
Yes. IRC Section 408(m)(3) names the American Gold Eagle and the American Silver Eagle as statutory exceptions. The Gold Eagle is allowed at 91.67 percent fine even though the general gold rule is 99.5 percent. Proof Eagles qualify when held in original mint packaging with the certificate of authenticity.
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 590-A, Contributions to Individual Retirement Arrangements (IRAs). irs.gov/publications/p590a. Checked June 2026.
- Internal Revenue Service. Form 5305-SEP, Simplified Employee Pension. irs.gov Form 5305-SEP PDF. 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 4973. Excise tax on excess IRA contributions. uscode.house.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.