Redwood Agent Retirement Program

Welcome to this guide tailored specifically for agents at CENTURY 21 Redwood Realty! As you continue your successful journey in real estate, it's crucial to explore and leverage the financial advantages available to you. One significant benefit is the option to contribute automatically to a Simplified Employee Pension Individual Retirement Account (SEP IRA) by deducting from your real estate agent commissions. This guide will provide insights into the benefits of a SEP IRA, the process of setting up automatic contributions, and how this can enhance your long-term financial planning.

As an agent with CENTURY 21 Redwood Realty, taking advantage of automatic SEP IRA contributions can significantly contribute to securing your financial future. By aligning the benefits with your real estate income and leveraging the convenience of automatic deductions, you can effortlessly streamline your retirement savings while focusing on your thriving career. Here’s a summarized process to get started:

1. Fill out the Sign-Up Form:
   • Access the form using this link: SIGN UP FORM LINK
   • This form will ask you to provide personal and income information, beneficiary details, and the required form of identification.
2. Wealth Advisor Onboarding:
   • Once the form is completed, expect a Wealth Advisor from Revolution Wealth to contact you.
   • They will guide you through the remaining onboarding process.
3. Initiate Automatic Deductions:
   • After completing the onboarding, automatic deductions from your commissions will commence.
   • Look for a deduction line item on your Commission Breakdown email, indicating the SEP IRA Contribution.

Helpful information about SEP IRAs:

What is a SEP IRA?

A SEP IRA is an individual retirement account that employers or self-employed individuals can establish on behalf of their employees.

Benefits of a SEP IRA:

1. Tax Advantages:
   • Tax-deferred contributions benefit both employers and employees, promoting increased retirement savings.
   • Investment growth within the SEP IRA is tax-deferred.
2. High Contribution Limits:
   • SEP IRAs offer higher contribution limits compared to SIMPLE IRAs and Traditional IRAs.
3. Investment Flexibility:
   • Choose from diverse investment options, including stocks, bonds, mutual funds, and real estate.
   • Customize your investment strategy based on your risk tolerance and financial goals.
4. Roth Option:
   • Achieve tax diversification through Roth contributions, allowing for tax-free growth and withdrawal.
   • Professionally managed by a Certified Plan Fiduciary Advisor (CPFA®) and CERTIFIED FINANCIAL PLANNER™ (CFP®) at Revolution Wealth.

How Much Can You Contribute to a SEP IRA in 2023?

The total SEP IRA contribution limit for 2023 is the lesser of 25% of compensation or $66,000.

When to Set Up and Fund Your SEP IRA?

SEP IRA accounts must be established before the due date (including extensions) of your business’s income tax return for the filing year. For contributions in 2023, establish the account before filing your business income tax return in 2024. Following the initial plan setup year, make SEP IRA contributions before the filing date or extended due date of your personal tax return.

Will I receive a tax document for my recurring contributions?

Yes, you will receive a tax document for your contributions to your mailing address from the plan custodian. CENTURY 21 Redwood Realty will not be issuing this form, however, we can provide a copy of your commission deductions for your earnings. Your detailed commission breakdown will be uploaded to your 1099 paperless file. CLICK HERE to learn more about 1099 FAQs.

What if I have more questions about wealth management?

You can reach out to a Wealth Advisor from Revolution Wealth. Below are their contact details: