A SEP gold IRA small business owner faces unique setup traps that cost thousands. The $70,000 contribution limit for 2026 sounds generous. Calculate it wrong and you trigger 6% excess penalties. The SEP gold IRA small business rules require equal contributions for every eligible employee. Home storage disqualifies the entire account. Three entities must coordinate: your business, an IRS-approved custodian, and an approved depository. Miss one piece and penalties stack fast.

📋 TL;DR – Quick Summary (Click to Expand)

The biggest SEP gold IRA small business mistakes include contribution miscalculations. Use 20% of net self-employment income, not 25% of gross. Excluding eligible employees disqualifies your plan. Anyone 21+ who earned $750 and worked 3 of last 5 years qualifies for SEP gold IRA small business contributions. Home storage schemes violate IRS rules completely. Gold must meet 99.5% purity standards under IRC Section 408(m). American Eagles get a special exception despite 91.67% purity. Setup requires Form 5305-SEP filed by your tax deadline. Annual costs run $400-$1,500 depending on custodian and storage choices.

📑 Table of Contents (Click to Expand)

• The Setup Process and Where It Goes Wrong
• Contribution Limits and the 20% Trap
• Employee Eligibility Rules
• Choosing Your Self-Directed Custodian
• IRS-Approved Metals Requirements
• Storage Rules and Home Storage Scams
• Fee Breakdown and Hidden Costs
• Real-World Case Studies
• SEP IRA vs Solo 401(k) Comparison
• Tax Advantages for Business Owners
• Frequently Asked Questions

The SEP Gold IRA Small Business Setup Process

Setting up a SEP gold IRA small business account requires steps in a specific order. Skip one step. Reverse two steps. The IRS does not care about your intentions. They care about compliance.

Most business owners rush the SEP gold IRA small business setup during tax season. They want the deduction. They shortcut the paperwork. They create problems that cost more than the tax savings.

Step 1: Establish Your SEP IRA Plan

You need a written agreement to provide benefits to all eligible employees. IRS Form 5305-SEP works for most small businesses. Some situations require custom plan documents for your SEP gold IRA small business arrangement.

This must happen by your business tax filing deadline including extensions. For most businesses, that means April 15 or October 15 with an extension.

The critical mistake: thinking you can set this up in January and backdate contributions to the previous tax year without having the plan formally established. You can make contributions until your tax deadline. The plan itself must exist during the year you are contributing for.

Step 2: Select Your Self-Directed IRA Custodian

Traditional brokerages do not handle physical precious metals. Your SEP gold IRA small business account needs a custodian specifically approved for self-directed IRAs with alternative assets.

Fees vary dramatically. Some custodians charge $200 annually. Others charge $500 or more. Add transaction fees, storage fees, and setup fees that can exceed $300.

Annual costs range from $400 to over $1,500 depending on custodian selection and gold holdings. Get the complete fee schedule in writing before committing. Companies hiding fees upfront will surprise you later.

For guidance on evaluating custodians, review our gold IRA custodian comparison guide.

Step 3: Fund the Account

You can contribute directly from business funds or roll over from another retirement account. For 2026, the SEP gold IRA small business limit is the lesser of $70,000 or 25% of compensation.

Self-employed individuals face a different calculation. More on that in the contribution limits section. This is where most penalty situations originate for SEP gold IRA small business owners.

Step 4: Purchase IRS-Approved Metals

Your custodian works with approved dealers to purchase metals on your behalf. You cannot buy gold yourself and transfer it into the IRA. That triggers a taxable distribution.

The metals must meet minimum fineness requirements under IRC Section 408(m). Not all gold qualifies for your SEP gold IRA small business account. Not all dealers understand what qualifies.

Step 5: Store It Properly

The gold goes to an IRS-approved depository. Not your home. Not your office safe. Not a bank safe deposit box you control.

Take physical possession and the IRS treats the entire amount as a distribution. Income tax on the full value. Plus 10% early withdrawal penalty if under 59½. Your SEP gold IRA small business benefits disappear instantly.

Setup Component	Common Mistake	Cost of Mistake
Plan Establishment	Not filing Form 5305-SEP by tax deadline	Contributions become non-deductible taxable income
Contribution Calculation	Using gross income instead of net SE income	6% excise tax annually on excess amount
Employee Coverage	Excluding employees who meet eligibility	Plan disqualification plus back contributions with interest
Metal Selection	Buying collectibles or non-approved coins	Full distribution treatment plus 10% penalty
Storage Location	Home storage or personal possession	Entire account disqualified as distribution
Custodian Selection	Using non-approved or high-fee custodian	Account issues plus excessive ongoing costs

SEP Gold IRA Small Business Contribution Limits

The SEP gold IRA small business contribution limit sounds straightforward. Up to 25% of compensation or $70,000 for 2026. Whichever is less.

For employees, that calculation works exactly as stated. For self-employed SEP gold IRA small business owners, the math changes completely.

Self-employed individuals must calculate contributions based on net self-employment income after the deduction for half of self-employment tax. The effective maximum drops to approximately 20% of net earnings.

Here is why this matters for your SEP gold IRA small business planning:

A sole proprietor with $200,000 gross business income calculates 25% and contributes $50,000. Wrong calculation. After SE tax deduction and the contribution deduction itself, the actual limit might be closer to $37,000.

That $13,000 excess triggers 6% excise tax annually. $780 per year until corrected. Miss it for three years before your CPA catches it and you have paid $2,340 in penalties before even addressing the correction.

The excess contribution correction requires withdrawing the excess plus attributable earnings by your tax deadline. Miss that deadline and the 6% keeps accruing. Work with a tax professional on your SEP gold IRA small business contribution calculation. The formula involves multiple deductions that affect each other.

SEP Gold IRA Small Business Employee Rules

If you have employees, the SEP gold IRA small business rules require equal treatment. Contribute 20% for yourself? You owe 20% for every eligible employee.

You cannot pick favorites. You cannot exclude part-time workers who meet the criteria. You cannot decide this year to skip employee contributions because business was slow.

Employee eligibility under IRS SEP rules:

• At least 21 years old
• Earned minimum $750 in 2026
• Worked for you in at least 3 of the last 5 years

That three-out-of-five-years rule creates surprises for SEP gold IRA small business owners. A seasonal worker you have used for four years suddenly qualifies. A part-time employee who worked 10 hours per week for three years qualifies.

Excluding eligible employees triggers plan disqualification. That means your contributions are no longer deductible. You owe back contributions to excluded employees with interest. The IRS Employee Plans Compliance Resolution System can help fix this, but correction costs add up.

Track employee eligibility annually. The qualifying threshold is low enough that almost any regular worker will eventually meet it.

Choosing Your Self-Directed Custodian

Regular SEP IRAs at traditional brokerages hold stocks, bonds, and mutual funds. Physical gold requires a self-directed IRA allowing alternative assets for your SEP gold IRA small business holdings.

The custodian handles administrative work. They confirm IRS compliance. They coordinate with depositories. They process your purchase and sale orders through approved dealers.

They do not give investment advice. If a custodian recommends specific gold products or pushes particular dealers aggressively, that is a warning sign.

Questions to ask before selecting a custodian for your SEP gold IRA small business:

• What is your complete fee schedule including setup, annual, transaction, and storage fees?
• Which depositories do you work with?
• What is your typical processing time for purchases?
• How do you handle required minimum distributions?
• Are you registered with the IRS as an approved custodian?

Get multiple quotes. Fee structures vary significantly. A $200 annual fee difference compounds over a 20-year holding period into thousands of dollars.

IRS-Approved Metals Requirements

The IRS restricts precious metals in IRAs to specific purity standards under IRC Section 408(m)(3)(A). Your SEP gold IRA small business account must hold only approved products.

Metal	Minimum Purity	Common Approved Products
Gold	99.5% (.995 fineness)	Gold Buffalo, Canadian Maple Leaf, Australian Kangaroo
Gold (Exception)	91.67% (American Eagle only)	American Gold Eagle coins specifically
Silver	99.9% (.999 fineness)	American Silver Eagle, Canadian Maple Leaf
Platinum	99.95% (.9995 fineness)	American Platinum Eagle, Canadian Maple Leaf
Palladium	99.95% (.9995 fineness)	Canadian Palladium Maple Leaf

American Gold Eagles receive a specific statutory exception despite being 22-karat (91.67% pure). This exception exists only for U.S. Mint bullion coins. Do not assume other 22-karat coins qualify for your SEP gold IRA small business account.

Collectible coins, numismatic pieces, and jewelry do not qualify regardless of gold content. Dealers who push rare coins for IRA accounts are selling you ineligible products with inflated markups.

Verify eligibility with your custodian before any purchase. Get written confirmation. Keep documentation. The IRS treats non-approved metals as distributions triggering full taxation.

For details on specific coin eligibility, see our American Gold Eagle review.

Storage Rules and Home Storage Scams

The IRS requires all IRA precious metals be held at an approved depository. This rule exists in IRC Section 408(m)(3)(B). No exceptions. No workarounds for SEP gold IRA small business accounts.

Some promoters advertise “home storage gold IRAs” or “checkbook IRA” schemes. They claim LLC structures create legal separation allowing you to keep metals at home while maintaining IRA tax benefits.

The IRS disagrees. Courts disagree. Multiple promoters of these schemes have faced enforcement actions.

If you take personal possession of your SEP gold IRA small business gold, the IRS treats the entire account value as a taxable distribution. Income tax on the full amount. Plus 10% early withdrawal penalty if under 59½. Plus potential accuracy-related penalties for underpayment.

A $75,000 contribution converted to home storage can result in $30,000+ in taxes and penalties. The “convenience” is not worth the risk.

Approved depositories provide:

• Full insurance coverage
• Regular third-party audits
• Segregated or commingled storage options
• 24/7 security monitoring
• IRS compliance documentation

Storage fees typically run $100-$300 annually depending on holdings and storage type. Segregated storage (your specific metals kept separate) costs more than commingled (tracked separately but stored together).

SEP Gold IRA Small Business Fee Breakdown

Total annual cost for a SEP gold IRA small business account typically includes:

• Custodian setup fee: $50-$300 (one-time)
• Annual custodian fee: $75-$300
• Transaction fees: $40-$100 per purchase or sale
• Storage fees: $100-$300 per year
• Dealer markup: 3-10% over spot price when buying

Some custodians charge percentage-based fees instead of flat rates. A 0.5% annual fee on $200,000 in metals equals $1,000 per year. That same custodian with $50,000 in metals costs only $250.

The fee structure matters based on your expected SEP gold IRA small business account size and trading frequency. Low flat fees favor larger accounts. Percentage fees favor smaller accounts with less activity.

Watch for hidden charges:

• Wire transfer fees
• Account termination fees
• Paper statement fees
• Inactivity fees
• Minimum balance penalties

Request the complete fee schedule in writing. Compare total annual costs across multiple custodians before deciding.

Real-World SEP Gold IRA Small Business Case Studies

Case Study 1: The Excess Contribution Disaster

Self-employed consultant. Gross business income of $250,000. Calculated 25% and contributed $62,500 to his SEP gold IRA small business account.

Problem: After the SE tax deduction and contribution deduction calculation, his actual limit was approximately $46,000. He over-contributed by $16,500.

The 6% excise tax triggered $990 annually. He did not catch the error for two years. Total penalty: $1,980 before correction.

The correction required withdrawing the excess plus earnings. He owed income tax on the withdrawn earnings. CPA fees for amended returns and calculations added another $1,500.

Total cost of the calculation error: over $4,000.

Case Study 2: The Home Storage Trap

Business owner convinced by a promoter that an LLC structure allowed home storage of SEP gold IRA small business metals. He contributed $80,000 and kept the gold in his home safe.

IRS audit three years later. The entire $80,000 treated as a taxable distribution in the year of the transaction. At age 54, he owed:

• Federal income tax: approximately $22,000
• 10% early withdrawal penalty: $8,000
• State income tax: approximately $4,000
• Interest and penalties: approximately $3,500

Total damage: $37,500 on what was supposed to be tax-advantaged retirement savings. The promoter company had already dissolved.

Case Study 3: The Employee Exclusion Problem

Restaurant owner with six employees. Established her SEP gold IRA small business account and contributed $45,000 for herself (25% of compensation). No contributions for employees.

Two employees qualified under the three-of-five-years rule. She owed matching contributions of approximately $12,000 total plus lost earnings calculated at market rates.

IRS correction program fees. Legal consultation fees. Back contributions with interest. Total cost exceeded $18,000 to fix what should have been $12,000 in proper contributions.

SEP IRA vs Solo 401(k) Comparison

Solo business owners without employees have another option: the Solo 401(k). Understanding the differences helps you choose correctly for your SEP gold IRA small business needs.

Feature	SEP IRA	Solo 401(k)
2026 Contribution Limit	$70,000 (employer only)	$70,000 total ($23,500 employee + employer)
Catch-up Contribution (50+)	None	Additional $7,500
Contribution Type	Employer contributions only	Employee + employer contributions
Roth Option	No	Yes
Loan Provision	No	Yes (up to $50,000)
Form 5500 Filing	Generally not required	Required when assets exceed $250,000
Gold IRA Availability	Widely available	Fewer custodian options

For business owners whose primary goal is holding physical gold, the SEP IRA typically offers more custodian choices and simpler administration. Solo 401(k) gold options exist but require more research to find qualified custodians.

For a deeper dive into retirement account comparisons, see our IRA comparison guide.

Tax Advantages for Business Owners

SEP gold IRA small business contributions are deductible as a business expense. The tax savings are immediate and substantial.

At a 24% marginal tax rate, a $50,000 contribution saves $12,000 in federal taxes that year. Add state income tax savings and the benefit increases further.

Inside the account, metals appreciate tax-deferred. Gold moving from $2,000 to $3,000 per ounce creates no taxable event until distribution. You control when that tax event occurs based on your retirement timing.

Distributions in retirement are taxed as ordinary income. Some view this as disadvantageous compared to capital gains rates. However, the upfront deduction and decades of tax-deferred growth typically offset this concern.

Business owners approaching retirement can also consider Roth conversions during low-income years. Convert when gold prices are depressed. Pay taxes on the lower value. Future appreciation becomes tax-free.

📋 Frequently Asked Questions (Click to Expand)

Can I store SEP gold IRA metals at home?

No. The IRS requires all IRA precious metals be stored at an approved depository under IRC Section 408(m). Taking personal possession triggers full distribution treatment with income tax and potential 10% early withdrawal penalty. Home storage schemes promoted by some companies violate IRS rules.

What happens if I contribute too much to my SEP gold IRA small business account?

You pay a 6% excise tax on the excess contribution for every year it remains in the account. The correction requires withdrawing the excess plus attributable earnings by your tax filing deadline. You will also owe income tax on the withdrawn earnings. Work with a tax professional to calculate the proper correction amount.

Do I have to contribute for all my employees?

Yes. If you contribute to your own SEP gold IRA small business account, you must contribute the same percentage for every eligible employee. Employees qualify if they are at least 21, earned $750 or more, and worked for you in at least 3 of the past 5 years. Excluding eligible employees can disqualify your plan.

What types of gold qualify for a SEP gold IRA?

Gold must be 99.5% pure or better under IRC Section 408(m). American Gold Eagles get a special exception despite being 91.67% pure. Canadian Maple Leafs, American Gold Buffalos, and bars from approved refiners qualify. Collectible coins and jewelry do not qualify regardless of gold content.

How much does it cost annually to maintain a SEP gold IRA small business account?

Expect $400-$1,500 per year depending on custodian, storage, and account size. This typically includes $75-$300 custodian fees, $100-$300 storage fees, and occasional transaction fees of $40-$100. Get the complete fee schedule in writing before opening an account.

Can I convert my existing SEP IRA to a gold IRA?

Yes. Open a self-directed IRA with a custodian handling precious metals, then execute a trustee-to-trustee transfer from your existing SEP. This is not a taxable event if funds move directly between custodians. The process typically takes 2-4 weeks.

What is the difference between SEP IRA and Solo 401(k) for gold investing?

SEP IRAs offer more custodian options for gold holdings and simpler administration. Solo 401(k)s allow higher contributions for some income levels and offer Roth options, but fewer custodians handle Solo 401(k) gold investments. Both allow physical precious metals in self-directed versions.

When is the deadline to establish a SEP gold IRA small business plan?

You must establish the plan by your business tax filing deadline including extensions. For most businesses, this is April 15 or October 15 with an extension. You can make contributions for the prior year until this deadline, but the plan must be formally established.

How is the contribution limit calculated for self-employed individuals?

Self-employed individuals use approximately 20% of net self-employment income after the SE tax deduction adjustment, not 25% of gross income. The calculation involves multiple interdependent deductions. Work with a tax professional to determine your exact limit and avoid excess contribution penalties.

Can I have both a SEP IRA and a traditional IRA?

Yes. You can contribute to both, but the combined contribution affects deductibility limits for the traditional IRA if you or your spouse are covered by a workplace retirement plan. SEP gold IRA small business contributions come from employer/business funds and have separate limits from personal IRA contributions.