• Print
  • Default text size A
  • Larger text size A
  • Largest text size A

Self-Employed 401(k) Plans

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

Plan features

Tax benefits

Tax-deferred growth

Tax-deductible contributions

Pre-tax employee deferral contributions

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

No setup or annual account fee1


Self-employed individuals and owner-only businesses and partnerships are eligible.

Owners’ spouses may also participate.

IRS maximum

Salary deferrals up to $17,500 for 2014 and $18,000 for 2015

See how much you may be able to contribute to your plan with our Self-Employed Contribution Calculator.

Catch-up contribution

Additional salary deferral of $5,500 for 2014 and $6,000 for 2015 (if age 50 or older)2

Profit sharing

Up to 25% of compensation,3 up to the annual maximum of $52,000 for 2014 and $53,000 for 2015

Establishment deadline

The deadline to open a new plan is December 31 (or fiscal year-end).


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


Minimum required distributions starting at age 70½

10% early withdrawal penalty if under age 59½ and no exceptions apply

Investment options

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

Support and guidance

One-on-one guidance—in person, online, or over the phone

Research and tools to help you create a long-term plan and choose investments

Next steps

Open a Self-Employed 401(k).
Call 800-544-5373 and select option 3 to speak with a small-business retirement specialist.

Get started on your own. Get a jump on the paperwork for your new plan.
Rated 4.1 out of 5 by 115 reviewers.
Rated 4 out of 5 by Convenient, flexible, and secure Service and convenience is excellent. The boilerplate setup documents are provided to start. I can make contributions and manage investments of myost any type and at any time from home on my computer. The annual tax reporting documents are easy to fill out with the documentation Fidelity provides. The information infrastructure and password policies keep things secure. I understand there is the ability to contribute to a self-employed Roth. I don't think Fidelity offerst that yet. So that is is the only shortcoming. Fidelity's people are the best. There are so helpful! February 16, 2013
Rated 4 out of 5 by works fine I have no issues with the program: I send money; it accepts it; I invest it how I see fit. Only improvement would be to allow ach transfers into the account. February 16, 2013
Rated 4 out of 5 by MySavings It is very good savings account. I would like to have some more fixed income products that allow us to reasily switch money between fixed income and other investments. February 15, 2013
Rated 5 out of 5 by Simple way to protect resources The 401(k) plan has been an excellent savings vehicle for me and has saved me significant amounts in taxes. Initially it had to be set up with care, and Fidelity was excellent at navigating me through the rules and regulations. Afterwards, it pretty much ran smoothly with minimal additional paperwork. A great savings option! February 15, 2013
Rated 2 out of 5 by Tired of Customer No-Service Complaint: No electronic access for deposits or distributions. In what century were these created? More flexibility in administration would give me more interest in investing with your firm. February 15, 2013
Rated 5 out of 5 by Excellent product This is a great opportunity for me to save a lot of money. Fidelity took charge of the details in setting this up as government rules are confusing. February 15, 2013
Rated 4 out of 5 by Deficiencies This plan needs to include a stable value fund as an investment option. All of my other retirement plans have them so there is no excuse not to. February 15, 2013
Rated 5 out of 5 by Easy way to maximize retirement savings Fidelity's 401k plan has made it easy for this self-employed individual to sock away as much as possible with a minimum of paperwork. Investing is easy and doesn't rack up giant, return-gobbling fees. February 15, 2013
Rated 5 out of 5 by SEP 401k I like that it doesnt cost anything and I can control the fund. I would like to make my deposits electronically however. February 15, 2013
Rated 4 out of 5 by 401K Review The 401K plan is good but does not have loan facilities in fidelity but whereas the other 401K allows loans. Also, no direct deposit is allowed. This is needed. Mailing the form is tedious. We need electronic submission and direct withdrawal from our corp account. February 15, 2013
Rated 5 out of 5 by Informative I am very happy with Fidelity. The customer service is great. The product is great. I especially like the commission free ETF's though not a part of the retirement plan. Keep doing exactly what you are doing! It is superb!!! February 15, 2013
Rated 2 out of 5 by Secure Home page should have links to order status, confirms and statements. Covered call orders should be easier to place. The option chain needs to be clearer and easier to place orders. February 15, 2013
Rated 3 out of 5 by Fidelity Not my Favorite My indiv. 401K is with Fidelity. They were one of the few doing these accounts 7 yrs ago so I appreciate their help. Fidelity service has been excellent. But here are my issues when compared to other firms that I have Roth 401K and Roth IRA's with. 1. The website and statements are difficult to use. 2. I transfer the data to a spreadsheet to manage my investments and it is very difficult to to this. 3. Commissions are higher than other firms. 4. Broker and Mutual Fund statements are not consolodated well, though I know they are required. Not required with broker firms that do not also have fund operations. I am happy with Fidelity but new funds are being directed to others. February 15, 2013
Rated 5 out of 5 by So far, so good As a self-employed individual, I was very happy to finally be able to set up my own 401(k) without being charged an enormous amount of money to simply set up a plan. February 15, 2013
Rated 3 out of 5 by Self employed 401k You need to have an automatic mechanism and better index fund options. If I could get here elsewhere I would switch. I shouldn't have to give up these elements tht you offer for others just because I have my own small company! February 15, 2013
Rated 5 out of 5 by flexible and convenient I used employer sponsored 401K at fidelity before. Fidelity self employed 401(K) offers the complete flexibility, excellent for people who knows what to do with the investment choices. I recommend fidelity self-employed 401(k). February 15, 2013
Rated 5 out of 5 by Tax savings and Fedelity's expertise in setting up. The benefit of tax savings far exceeded that of an IRA, and Fidelity staff guided me through the setup and forms to file and the annual contributions and profit sharing process to realize the maximum benefit. February 15, 2013
Rated 4 out of 5 by RRSW Very pleased overall with Fidelity Solo 401-k plan....However, really thing Fidelity needs to step up and offer a Roth plan as well (since you provide for your employees) and since most other retail brokers now offer this too.. I may have to open one at another brokerage firm as I've now been asking and waiting 2 plus years for Fidelity to roll-out.. February 15, 2013
Rated 4 out of 5 by Great Product; needs one improvement Everthing about the Fidelity Individual 401k is great. Convenience of finding information and forms online is excellent, including comparison tools with other plans such as SEP-IRA. Lots of investment choices. The nearby Fideltiy Financial Center is definitely a plus. One thing is missing. I would like to see a Individual 401k Roth option. February 15, 2013
Rated 5 out of 5 by All-in-One Fidelity provides multiple accounts so that all my money is within one login. Bill paying is available. My credit card adds money automatically for me each month. Having everything in one place saves me many hours each month. One of the best sites for serious investors and retirees. February 15, 2013
Rated 5 out of 5 by sole proprietor Fidelity's self-employed 401(k) is fantastic for the sole proprietor. It is inexpensive to set up and maintain. The investment options are flexible including RITs, Stocks, bond and mutual funds, and ETF's. The fees are very reasonable and the data and reporting is easy to follow. Tracking your progress is also easy on their web site. I have not utilized their investment advice section. February 15, 2013
Rated 5 out of 5 by Great overall with one suggestion I love the Self-Employed 401k. My only suggestion would be to allow an on-line deposit from a bank account or other account. I currently have to transfer the money from my investment account to my bank account, then manually write a check and mail it to Fidelity. Would be nice to do the transaction entirely on-line. February 15, 2013
Rated 4 out of 5 by Very nice and easy to use product This is a very good product easy to set up and use, The only thing I think us missing is the ability to contribute to a Roth also I wrote customer service awhile back and would Like to see it incorporated into the product to make it an excellent product Fidelity does a good job February 15, 2013
Rated 5 out of 5 by Simple and fast I could not believe how easy it was to set up this account with Fidelity, and also what a difference it made as a self-employed individual to be able, in simple fashion, to achieve the sort of savings possible. It would help to have some additional follow-ups, particularly for the IRS form 5500 which is required for plans when a certain value is reached. Penalties for failing to file this are severe. February 15, 2013
Rated 4 out of 5 by 401k self employed I like the plan prototype and the ability to invest in funds and stocks etc. I did not like the recent experience to have to file with Revenue Canada to stop possible backup withholding from my account. They needed copies of Fidelity trust and plan document. Why was this work not done for me on my behalf by Fidelity as a huge provider of such plans? I was told when I met with my Fidelity rep last week that the exemption form sent to me by Fidelity to do the admin work on this should not have been sent out to me... I would think this should be something you would want to do for your investors using a Fidelity prototype.. February 15, 2013
Rated 1 out of 5 by Diverse investment products, easy to purchase and manage Fidelity offers a wide range of investment products. The well-designed website enables me to research, compare, buy, and manage all of my investments easily. February 15, 2013
Rated 4 out of 5 by A good effort with one flaw A good all-purpose plan with access to all investments I would want. Commission-free ETFs are a definite plus; wider array of choices would be good. The only fatal flaw is that the plan doesn't offer a Roth 401(k) option. With competitors offering Roths, Fidelity can't afford to ignore the benefit of including a Roth option in their plans. Apart from that, I'm quite satisfied. February 15, 2013
Rated 3 out of 5 by needs electronic deposit overall im pretty happy with it but the fact that i have to send in a check and paperwork is an inconvenient anacronism February 15, 2013
Rated 5 out of 5 by Title Once I spent some time on the phone with one of your retirement plan representatives, everything has gone smoothly since. However, inasmuch as you have my E-mail address and know that I have a Fidelity retirement account, it would be nice if you would notify me when you update your SEP 401(K) online documentation. At times it can be a bit difficult searching for it on your huge website. February 15, 2013
Rated 4 out of 5 by 401K Need more tax info on self employed who also have full time jobs. Max contribution on all qualified combined plans for 2012?? February 15, 2013
  • 2015-04-01T09:50:57.254-05:00
  • bvseo_lps, prod_bvrr, vn_prr_5.6
  • cp-3, bvpage2n
  • co-hasreviews, tv_115, tr_115
  • loc_en_US, sid_013, prod, sort_default
<<prev 2 3 4 next>>
Although consultations are one on one, guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.
Note that the total of salary deferrals and profit sharing contributions cannot exceed $52,000 ($57,500 if age 50 or older) for 2014 and $53,000 ($59,000 if age 50 or older) for 2015.
1. 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.
2. With catch-up provisions, individuals 50 and older may defer up to $23,000 in 2014 and $24,000 for 2015, subject to the combined deferral and employer contribution limit.
3. Maximum compensation on which contributions can be based is $260,000 for 2014 and $265,000 for 2015. If you are self-employed, compensation means earned income.
For further information on your specific situation, consult with your tax advisor.
The initial customer ratings and reviews for this product (those dated before 3/18/2013) were provided to Fidelity through an email solicitation for feedback on the product. All ratings and reviews are provided to Fidelity on a voluntarily basis and are screened in accordance with the guidelines set forth in our Customer Ratings and Reviews Terms of Use. For additional information on which ratings and reviews may be posted, please refer to our Customer Ratings and Review Terms of Use. Featured Reviews have been selected based on subjective criteria and reviewed by Fidelity Investments. The average rating is determined by calculating the mathematical average of all ratings that are approved for posting per the Customer Ratings and Reviews Terms of use and does not include any ratings that did not meet the guidelines and were therefore not posted. Ratings and reviews are added continuously to the website (after a delay for screening against guidelines) and average ratings are updated dynamically as reviews are added or removed.
The ratings and experience of customers may not be representative of the experiences of all customers or investors and is not indicative of future success. The accuracy of information included in the customer ratings and reviews cannot be guaranteed by Fidelity Investments. Customers who post ratings may be responsible for disclosing whether they have a financial interest or conflict in submitting a rating and review.
Please contact a Fidelity representative if you have additional questions or concerns about the ratings and reviews posted here.

Tax Advantages of Self-Employed 401(k)s

A Self-Employed 401(k) may substantially reduce your current income taxes because generally, you can deduct the entire amount of your plan contributions from your taxable income each year.

  • If your business is unincorporated, you can deduct contributions for yourself from your personal income.
  • If your business is incorporated, you can generally deduct contributions as a business expense.
  No Plan Self-Employed 401(k)
Net Business Profits $100,000 $100,000
Less Deduction for ½ Self-Employment Tax -7,065 -7,065
Less Max. Contribution (25% of earned income)3 -0 -18,587
Less Salary Deferral -0 -17,000
= Taxable Income = $92,935 = $57,348
Taxes Due4 $19,937 $11,256
Taxes Saved $0 $8,681

How a Self-Employed 401(k) contribution can add up

As you can see from the example below, for 2012 a self-employed business owner who is age 50 with $100,000 in compensation may save up to $20,500 more with a Self-Employed 401(k) than with a SEP-IRA or Profit Sharing Plan.

2012 Example No Plan Self-Employed 401(k)
Employer's Tax Deductible Contribution Up to 25%3 of compensation (not to exceed $50,000) $18,587 $18,587
(25% x $74,348)
Employee's Deferral Option (not to exceed $17,000) Not applicable $17,000
Employee's Catch-Up Deferral Option if age 50 or older (not to exceed $5,500) Not applicable $5,500
Final Total Contribution $18,587 $41,087

Note: Fidelity also offers a Profit Sharing Plan which lets you contribute the same amount as a SEP-IRA. A Profit Sharing Plan may be better suited for your needs if you have multiple employees and want more restrictive eligibility requirements to participate in the plan. Please contact a Fidelity retirement representative at 800-544-5373 and select option 3 for more information.