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.
Questions?
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.
| 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. |
| Eligibility |
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 $54,000 for 2017 and $55,000 for 2018), 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. |
| Administrative
responsibilities |
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 |
| Employee
responsibilities |
Each employee must open an individual SEP IRA account. |
| Withdrawals |
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 opening cost or annual fee for Fidelity's Traditional, Roth, SEP, SIMPLE, and rollover IRAs. Fund investments held in your account may be subject to management and short-term trading fees, as described in the offering materials. For all securities, see Fidelity commission schedule (PDF) 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 and select option 3 to speak with a small-business retirement specialist.
or call 800-544-5373 and select option 3 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.
Answer 5 simple questions to help you decide how much you may be able to contribute to your plan.
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