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. And there are no account fees or minimums to open.
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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 |
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| Contribution rules |
Must be made by the employer Can vary each year between 0% and 25% of compensation (maximum $56,000 for 2019 and $57,000 for 2020), 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 July 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 72.1 |
| Account fees |
There is no opening cost, closing cost or annual fee for Fidelity's Traditional, Roth, SEP, SIMPLE, and rollover IRAs.2 |
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| Trading fees |
$0 commission for online US stock, ETF, and option trades* |
| Mobile check deposit |
Make deposits directly into your account using your device's camera. Learn more |
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| By mail |
Submit a check by mail using this Deposit Slip (PDF). Be sure to include your account number on the check. |
| Fidelity BillPay® |
Our free, online service lets you easily make payments and manage your bills. If mailing a check, be sure to include your account number in the memo line. |
| Online |
Contribute securely using an electronic funds transfer (EFT). |
| By phone |
Limits will apply. |
SEP IRAs are deductible by the business and therefore should be funded from a business source.
Next steps
Open a SEP IRA
or call 800-544-5373 to speak with a small-business retirement specialist.
or call 800-544-5373 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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