Self-employed 401(k) A 401(k) to help self-employed individuals reduce taxes and save more

Self-employed individuals, owner-only businesses, and partnerships can save more for retirement through a 401(k) plan designed especially for you.


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Benefits of a Fidelity Self-employed 401(k)


Higher contribution limits

Up to $72,000 for 2026 (employer & employee), plus "catch-up" options for ages 50+.


Tax advantages

Potential deductions for employers, with employee tax advantages through traditional and Roth contributions.


No fees

No account fees for your plan with Fidelity.1,2

One plan, multiple ways to save on taxes


Looking to reduce your taxable income and grow your savings tax-advantaged? A self-employed 401(k) from Fidelity can help.


Cut your income taxes: Deduct traditional 401(k) contributions from your business and/or personal tax returns, as applicable.


Tax-free growth potential: Your investments have the potential for tax-free growth until withdrawal.


Add a Roth option: Make after-tax contributions that may grow—and be withdrawn—tax-free if requirements are met.



Open an account

Add Roth contributions for tax flexibility and savings potential—at any age


New from Fidelity, the potential for tax-free growth in your Self-employed 401(k) with our optional Roth feature.


For some individuals, a Roth will be required (starting January 1, 2026) for making catch-up contributions when:



  • You're a W2 employee age 50 or older
  • Your income exceeds $150,000 (in 2025 for 2026 contributions, adjusted annually)



New and existing customers can add the Roth feature anytime by selecting "Open an account."

Self-employed 401(k) contribution limits

Know your limit: Answer 4 questions—we'll calculate your contribution limit to all plans available to you.


Calculate your personal limit

See how it's done: Learn how to make a contribution, including salary deferral elections.


Learn more about making a contribution

Easy online account opening


In a few clicks, we'll walk you through the questions to complete your:


  • Self-employed 401(k) account application: This is where we gather all your important personal and business information to get your account opened.
  • Adoption agreement: This is the form used to define the eligibility requirements you'd like to set for your plan.

Keep in mind: By selecting Open an account, new and existing customers also have the ability to add the optional Roth feature.


Note: Some situations below may require you to print and mail the forms to Fidelity.


Open an account



Do any of these situations apply?


  • You're not the plan administrator
  • You operate multiple qualified plans for your business
  • You're part of an affiliated group of employers
  • You need to integrate the plan with Social Security

If so, please download and complete the following forms, and return them to Fidelity (keep a copy for your records):



Please review, download, save (or print for your records), and complete in the case of the Trust Agreement:


Frequently asked questions

Plan details

Eligibility

  • Who is a Self-employed 401(k) plan appropriate for?

    A self-employed 401(k) plan may be appropriate for sole-proprietors and other small businesses who have no eligible employees other than owners and spouses of the owners. Individuals with corporations (Corp.), limited liability corporations (LLC), and partnerships may also be able to establish a self-employed 401(k), provided there are no common law employees of the business.

  • Who can participate in the Self-employed 401(k)?

    In addition to the business owners, the owners' spouses may participate in the plan provided they are compensated employees of the business.

  • When would a Self-employed 401(k) not be appropriate?

    If the company has common law employees this plan is not appropriate. This plan might not be appropriate if you have ownership interest in more than one business or are a participant in a company sponsored 401(k) or other salary deferral retirement plan. If you are looking for a plan with loans, hardship withdrawals, in plan conversions to Roth, or the ability to make employer contributions as Roth, this would not be appropriate for your business as these features are not offered at this time.

  • What are the administrative requirements associated with the plan?

    The plan administrator, who is typically the business owner, would be responsible for the administration of the plan, and is required to maintain and update, when needed, all plan records and documents pertaining to the plan. Making and tracking contributions to and approving distributions from the plan are also the plan administrator's responsibility. In addition, the plan administrator is responsible for the tax filing that is required for some plans annually and all plans upon termination. Please see Maintain your 401(k) for more information.

  • What is the deadline to establish a Self-employed 401(k) plan?

    The deadline to open a new plan is generally the tax filing deadline (including extensions) of the sponsoring business. Note: For partnerships and corporations that establish their plan after the business's year end, only the employer profit sharing contributions are allowed for the first year. Sole proprietors who establish their plan after the business's year end and before their tax filing deadline (no extension) must make their deferral contribution by their tax filing deadline (no extension). Sole proprietors who establish their plan after their tax filing deadline but before their extension deadline may only make profit sharing contributions for the plan's establishment year.

  • How do I add my spouse to the plan?

    A spouse, who is also a compensated employee of the business, may be added to the plan by using the Self-Employed 401(k) account application.

Ways to contribute


Build your savings today by using one of the following options:


Electronic funds transfer (EFT)

Move money from an external bank to your Fidelity account.



Contribute nowLog In Required

Transfer from a Fidelity account

Make a contribution from a Fidelity account.



Contribute nowLog In Required

Mobile check deposit

Using your phone or mobile device, deposit in a snap using just your camera and the Fidelity app.


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Contribution limits


Contribution type 2025 maximum4 2026 maximum4
Employee Salary Deferral Contributions $23,500 $24,500
Catch-up opportunity (Ages 50-59 and age 64+) $7,500 $8,000
Catch-up opportunity (Ages 60-63) $11,250 $11,250
Employer profit sharing contribution5 $70,000 $72,000

Note: The employee salary deferral contribution has one overall annual limit that’s aggregated between your traditional and Roth contributions to a Self-employed 401(k).

Want to calculate your limit based on your personal circumstances? Use our fast and easy Small Business Retirement Plan Contribution Calculator.



Contribution deadlines

  • The year your plan is established, contribution deadlines are based on your business structure and other considerations. See establishment deadlines.
  • For subsequent years, employee salary deferrals and company profit sharing contributions must be completed by business's tax filing deadline, including extensions.
  • Commencement of salary deferral is a written salary deferral election (PDF), typically by the business's fiscal year end.

Call a retirement specialist at 800-544-5373, and say "retirement representative," to get help with a rollover into a Fidelity Self-employed 401(k).

Ways to move outside accounts to a Fidelity Self-employed 401(k)

If you have retirement accounts elsewhere, you can still take advantage of Fidelity Self-employed 401(k).

Have a Self-employed 401(k) elsewhere?
Transferring to Fidelity is fast and easy.


Transfer all or part of your non-Fidelity Self-employed 401(k)—including stocks, bonds, mutual funds, and other security types—without needing to sell your investments.3


Start a transferLog In Required

How to roll over an old workplace plan to a Fidelity Self-employed 401(k)

If you have an old workplace retirement account, such as a 401(k), you have the option to roll it over into a Self-employed 401(k). Be sure to consult with a tax advisor before making a change to your retirement plan.  If you decide to rollover assets, here are the steps:

  1. Start by opening a Fidelity Self-employed 401(k) online
  2. Initiate the rollover of your money by calling your workplace plan provider or using their website
  3. Prepare a Letter of Acceptance (LOA) to accompany your rollover

    We've included a sample letter to show you what to include your LOA. Fidelity requires a copy of the LOA, and your old provider may require a copy as well. Keep a copy for your plan records.


    Please note: You cannot move pre-tax assets into a Roth Self-employed 401(k) account; Fidelity does not support conversions.
  4. Deposit your money in your Fidelity Self-employed 401(k), along with your LOA
    Your old workplace plan provider will give you a choice:

    •  Have your old provider send the money directly to us, or

    •  Deposit it yourself


    You have multiple options for sending the money to Fidelity. If by check, make it payable to Fidelity Investments, 
FBO [name of plan participant]. Checks do not need to be endorsed and should include your Fidelity Self-employed 401(k) 
account number.

    If your old provider sends the money to Fidelity, be sure to mail your LOA to Fidelity in advance of the check’s arrival, with a letter instructing Fidelity to expect a rollover check. For support, please call 800-544-5373 and say "Small Business Retirement."

    Note: The employee salary deferral contribution has one overall annual limit that's aggregated between your traditional and Roth contributions to a Self-employed 401(k).

Frequently asked questions

  • How do I set up my salary deferral elections?

    If you have an unincorporated business, you (and your spouse if they are an employee of the business) must make a written salary deferral election before the end of the year. Employees of incorporated businesses must make a written salary deferral election before they can begin deferring from paychecks and that must be before the end of the business's tax year.

    You may use the sample 401(k) Salary Reduction Agreement Form (PDF). Fill it out and have each participating owner (including the business owner's spouse, if applicable) complete a Salary Reduction Agreement Form if they will be making salary deferral contributions to the plan.

    Please keep this form for your own records. There is no need to send a copy to Fidelity.

  • How much can I contribute to my Self-employed 401(k)?
    • Individuals may elect a salary deferral amount up to $23,500 for 2025 and $24,500 for 2026.
    • Employers may contribute a profit-sharing amount up to 25% of compensation, with the maximum allowed combined employer and salary deferral contribution amount of $70,000 for 2025 and $72,000 for 2026.
    • For participants age 50-59 or 64+, additional salary deferral catch-up contributions are allowed of $7,500 for 2025 and $8,000 for 2026. For participants age 60-63 the catch-up contribution $11,250 for 2025 and 2026.
  • What contribution types can be made to the Roth Self-employed 401(k)?
    Only employee salary deferral contributions can be made into the Roth Self-employed 401(k).
  • How are the Roth contributions made?

    Some participants will need to make their catch-up contributions as Roth starting in 2026. It's voluntary for everyone else. Beginning January 1, 2026, section 603 of the SECURE 2.0 ACT of 2022 requires that eligible participants in a 401(k) plan whose wages for the preceding calendar year exceeded $150,000 (adjusted annually), must make any catch-up contributions as designated Roth deferrals.

  • What is the benefit of the Roth Self-employed 401(k)

    Qualified distributions are tax free—that includes the earnings. You do not, however, receive a tax deduction when you make the contribution. See your tax advisor if you have questions on whether tax free distributions are best for you.

  • How do I establish to the Roth Self-employed 401(k)?

    If you are ready to establish your Roth Self-employed 401(k) you'll need an account setup and you'll need to fill out the Roth Self-employed 401(k) Addendum (PDF).

Get started with your activated plan


Once you've established your Self-employed 401(k), don't forget to:

  1. Become familiar with the Defined Contributions Retirement Plan document (PDF), which contains the IRS-approved rules for your plan, as well as a definition of terms. The plan administrator must abide by the rules detailed in the plan document.
  2. Make timely contributions. Missing your deadline can cost you money. For details, see Contribute to your Self-employed 401(k).

Remember to keep good records


You'll want to keep a file of all relevant documents, starting with the forms used to establish your plan. This is not a comprehensive list, but among the important documents you will need to keep are the:

  • Defined Contributions Retirement Plan document (PDF)
  • The Defined Contribution Retirement Plan-Trust Agreement
  • Designated Roth contributions addendum to a Defined Contribution Retirement plan
  • Defined Contribution Retirement Plan - 401(k) Salary Reduction Agreement
  • The Defined Contribution Retirement Plan - Profit Sharing/401Ik) Plan Adoption Agreement No. 001
  • Records of all contributions and distributions
  • The year of first contribution if you have made Roth deferrals
  • Any corrections of errors of operation, should they occur

Over the life of your self-employed 401(k), you may have reason to amend your adoption agreement. You should keep any older versions, along with the most current version. You should operate your plan under the most recent version of the plan document, however, you should keep a copy of all versions your plan has operated under. Note: Fidelity doesn't retain these records on your behalf.

Be aware of who's eligible for your plan


Fidelity's Self-employed 401(k) is designed for self-employed individuals or small owner-only businesses with no employees other than spouse-employees.


Should you hire an employee, even part time, you may be required to cover them with your plan.


The rules for eligibility and how much you must contribute for employees can be very complicated, and you'll likely need to consult a tax advisor for assistance.


Rules for participation
As a result of the SECURE Act and the SECURE Act 2.0, the strictest age and service requirements that you can apply to an employee before they can participate in a 401(k) are:

  1. The employee must be at least 21 years old with service time of at least 1 year (12 months) and no less than 1,000 hours 
of service,

    OR

  2. The employee must have completed 3 consecutive years (36 months) of service, with at least 500 hours of service or more each year, provided the employee turned age 21 by the close of the third year. The later could make 401(k) deferrals under the plan available to certain part-time employees starting 1/1/2024. Beginning in 2023, the SECURE Act 2.0 reduces the 3-year rule to 2 years. This could affect employees starting 1/1/2025.

Note: In accordance with IRS Notice 2024-73, employees' ability to defer into the plan is delayed until 1/1/26.

Rules and tax ramifications for withdrawals


Participants are eligible for a withdrawal once a triggering event occurs. To see a full list of triggering events and to submit a distribution request, please see the Defined Contribution Retirement Plan One-Time Withdrawal form (PDF).



From the Traditional Self-employed 401(k) account: Distributions are taxable as ordinary income. If you withdraw before age 59½, you may be subject to an IRS penalty. Once you reach age 73, you must take a required minimum distribution (RMD) annually, even if you're still working. Distributions from a Traditional Self-employed 401k are penalty-free provided certain conditions or circumstances are met, please see the Defined Contribution Basic Plan Document (PDF) for exceptions and rules.

From the Roth Self-employed 401(k) account: Qualified distributions from your designated Roth account are tax free. To be qualified, your designated Roth account must have met its 5-year aging requirement and your distribution must be made at age 59½ years of age or older, due to disability, or from an inherited account. Unqualified distributions are done proportionally between your contributions and earnings. The earnings may be subject to taxes and penalties.

Other maintenance considerations

  • Factors that impact your tax reporting

    The plan administrator is responsible for retaining records of all contributions into the plan, as well as the year of first contribution. Fidelity retains this information for plans established, and contributions made, at Fidelity. If any Roth contributions need to be updated due to a transfer or rollover, you may update the information here.

    If the plan administrator needs to update the year of first contributions, please use the Retirement Plan Information Form (PDF).

    If part of the plan is maintained outside of Fidelity—or any in-plan rollovers (IRRs) have been done outside of Fidelity—the plan administrator will be responsible for providing, upon any withdrawals, the principal amount in the plan, the taxable amount of the distribution, and any IRR amount.

  • 5500 tax filing

    401(k)s have a tax filing that will be required of the plan administrator, sometimes on an annual basis or perhaps just once. Factors that determine how often and what version of form 5500 the plan administrator must file depends partly on whether or not you have employees in your plan, and what your plan assets are in total. Each year in late April, Fidelity will send you an Annual Valuation Statement (AVS) for your plan to help you determine if a filing is necessary. Most owner only plans can file the 5500EZ after plan assets exceed $250,000, but consult the IRS of your tax advisor if you are unsure of which version applies to your plan and if you are required to file. See Understanding form 5500 for more information and help with 
the filing.

  • Correcting errors of operation

    If an error is made operating your plan, it's your responsibility as the plan administrator to make necessary corrections. See Helpful resources below for more information.


    A common error of operation is over-contributing to the plan, resulting in an excess contribution. You should do everything you can to avoid over-contributing, as it can be costly and difficult to correct an excess contribution. There are multiple types of excess, but the two most common are:

  • Terminating your plan when necessary

    An active plan should have substantial and recurring contributions. If you're ready to terminate your plan, please see the Self-employed 401(k) Termination Guide (PDF).

    If instead if a self-employed 401(k) you have a money purchase and/or a profit-sharing plan please use one of the 
following guides:

    Money Purchase Termination Guide (PDF)
    Profit Sharing Termination Guide

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Have more questions?

Call 800-544-5373 and say "Small Business Retirement"

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