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.

Reasons to consider Self-Employed 401(k) Plans

  • Access to Fidelity retirement professionals to help with your plan
  • Wide range of investments
  • Contributions by phone or by mail
  • No setup or annual account fee1

Call us at 800-544-5373

Select option 3 to speak with a small-business retirement specialist.

Or start the paperwork on your own first.

Self-Employed Contribution Calculator
Answer five simple questions to see how much you may be able to contribute to your plan.

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
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

Eligibility

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

Owners’ spouses may also participate.

IRS maximum contribution

Salary deferrals up to $18,000 for 2015 and 2016

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 $6,000 for 2015 and 2016 (if age 50 or older)2

Profit sharing contribution

Up to 25% of compensation,3 up to the annual maximum of $53,000 for 2015 and 2016

Establishment deadline

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

Administrative responsibilities

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

Withdrawals

Minimum required distributions starting at age 70½

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

Account fees

No annual fees, no establishment fees*

*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

$7.95 for online U.S. equity trades

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.
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Rated 4.1 out of 5 by 150 reviewers.
Rated 4 out of 5 by Convenient with Lots of Options My Self-Employed 401K has turned out to be a great way to shelter some of my self-employed income. Fidelity offers a wide variety of investment choices. The only improvement I can think of would be for Fidelity to offer a more convenient way of depositing new money into the account. February 16, 2013
Rated 5 out of 5 by Year end Can you make IRS reprting simpler? Tell me what I need to file and when, and send me the form to fill out, or provide a link to it; ie: Form 5500, etc. February 16, 2013
Rated 4 out of 5 by jaa review secure and also fairly assessed. Good value and will continue to use Fidelity February 16, 2013
Rated 5 out of 5 by Efficient and Reliable I am a CPA running a one man practice set up as a corporation. I established this plan a little over seven years ago and it suits my circumstances just fine. I have also recommended this type of plan to clients of mine. For the future, I am curious to find out if there is a way to remit my periodic elective deferral contributions and year-end profit-sharing contribution electronically via the internet at the Fidelity website. Also, I was wondering if this type of plan can be amended to allow for ROTH 401(k) elective deferrals. February 16, 2013
Rated 4 out of 5 by Needs ROTH option The Self-Employed 401k plan should give the employee the option of making non-deductible ROTH contributions. February 16, 2013
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
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