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.

Reasons to consider a Fidelity SEP IRA

Easy set up and maintainance
Open an account and contribute online, by phone, or by mail.

Tax advantages
Earnings grow tax deferred and contributions are tax-deductible.

Flexible annual contributions
Contribute from 0% to 25% of compensation.

Self-Employed Contribution Calculator
Answer 5 simple questions to help you decide how much you may be able to contribute to your plan.

Tax advantages

Tax-deferred growth potential

Tax-deductible contributions

Investment options

Get access to a wide range of investment options, see them here.

Support and guidance

We offer one-on-one guidance—in person, online, or over the phone. Plus, our research and tools can help you choose investments and create a long-term plan.


Must be sole proprietor, a business owner, in a partnership, or earn self-employment income by providing a service

Contribution rules

Must be made by the employer

Can vary each year between 0% and 25% of compensation (maximum $53,000 for 2016 and $54,000 for 2017), and each eligible employee must receive the same percentage

Calculate how much you can contribute using our Self-Employed Contribution Calculator.

You also can use our SEP IRA Contribution Worksheet (PDF).

Establishment deadline

SEP IRAs must be established and funded by your tax filing deadline plus applicable extensions.

As an example, for a sole proprietor April 15 would be the deadline to establish and fund a SEP for the prior tax year. If an extension was filed a sole proprietor can establish and fund a SEP IRA by October 15.


Employee notification of employer's contribution

Employers must fill out and retain Form 5305 SEP (PDF) in their records.

No plan tax filings with IRS


Each employee must open an individual SEP IRA account.


10% early withdrawal penalty may apply for withdrawals taken prior to age 59½ if no exceptions apply. Penalty-free withdrawals for qualifying first-time home purchase and certain college expenses. Required minimum distributions starting at age 70½.

Account fees

No fee to open or maintain your account.*

*There is no cost to open and no annual fee for Fidelity's Traditional, Roth, SEP, and Rollover IRAs. A $50 account close out fee may apply. Fund investments held in your account may be subject to management, low balance and short term trading fees, as described in the offering materials. For all securities, see the Fidelity commission schedule for trading commission and transaction fee details.

Trading fees

$4.95 per online U.S. equity trade will apply.

Next steps

Open a SEP IRA
or call 800-544-5373 to speak with a small-business retirement specialist.

Self-Employed Contribution Calculator
Answer 5 simple questions to help you decide how much you may be able to contribute to your plan.