Self-employed 401(k)

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

With Fidelity, you have no account fees and no minimums to open an account.1 You'll get exceptional service as well as guidance from our team.

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Key things to know

Who is eligible

Self-employed individuals and owner-only businesses. The owner's spouse may participate in the plan.

Tax benefits

Tax-deferred growth, tax-deductible contributions, and pre-tax deferral contributions.

Learn more about the tax advantages of self-employed 401(k)s

Who contributes

Funded by compensation deferrals and employer contributions.

Contribution
amounts

Individuals may contribute up to $19,500 for 2020 and for 2021. Employers may contribute up to 25% of compensation, up to a maximum of $57,000 in 2020 and $58,000 for 2021. Profit sharing contributions allowed up to 25% of compensation,2 up to the annual maximum of $57,000 for 2020 and $58,000 for 2021. Total contributions cannot exceed $57,000 in 2020 and $58,000 for 2021. Additional salary catch up of $6,500 for 2020 (if age 50 or older) and $6,500 for 2021.3

Withdrawals

Cannot take withdrawals from the plan until a "trigger" event occurs, such as turning age 59½, disability or death. 10% early withdrawal penalty applies if you are under age 59½ and taking a distribution. Required minimum distributions start at age 72.4

Investment
options

A wide range of mutual funds, stocks, bonds, ETFs, and FDIC-insured CDs.

Fees

There is no opening cost, closing cost, or annual fee for Fidelity's self-employed 401(k). $0 commission for online US stock, ETF, and options trades.*^

Administrative
responsibilities

Annual IRS Form 5500 filing after plan assets exceed $250,000.

Deadlines

The deadline to open a new plan is generally December 31 (or fiscal year end) if compensation deferrals are intended. The SECURE Act change to tax filing deadline including extensions allows for profit sharing only.

How to make
contributions

By phone or by mail.

Ready to get started?

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For all small-business plans, call us at
800-544-5373