SEP IRA: Simplified Employee Pension Plan

Simplified Employee Pension Plans (SEP IRAs) help self-employed individuals and small-business owners get access to a tax-deferred benefit when saving for retirement.

Account benefits

  • Potential tax-deferred savings growth and tax-deductible employer contributions
  • No annual tax filings required; easy plan administration
  • Flexibility to increase, lower, or skip annual employer contributions

Why Fidelity

  • Only $4.95 for online U.S. equity trades*
  • A wide range of Fidelity and non-Fidelity funds, as well as stocks, bonds, ETFs, and CDs—plus help choosing them
  • Comprehensive research and tools to help you find, analyze, and track investment performance
  • Knowledgeable retirement specialists to help you create and maintain your plan

What you should know

  • Employer contributions ranging from 0%-25% of compensation ($53,000 cap for 2016; $54,000 cap for 2017), with each eligible employee receiving the same percentage
  • Required minimum distributions generally beginning at age 70½ (10% withdrawal penalty for distributions if under age 59½, with exceptions)
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

$4.95 commission applies to online U.S. equity trades in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). Other conditions may apply. See for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules.