SEP IRA

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Mutual Funds and Mutual Fund Investing - Fidelity Investments

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Small Business Overview

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.

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.

Questions

800-544-5373

Chat with a representative

Quick links

Compare all small-business plans

SEP IRA Contribution Worksheet (PDF)

Key things to know

Who is eligible	Self-employed individuals or small-business owners, primarily those with only a few employees.² Must be a sole proprietor, a business owner, in a partnership, or earn self-employment income by providing a service.
Tax benefits	Earnings are tax-deferred and contributions are tax-deductible.
Who contributes	Funded by employer contributions.
Contribution amounts	Must be made by the employer and can vary each year between 0% and 25% of compensation (maximum $58,000 for 2021 and $61,000 for 2022). Each eligible employee must receive the same percentage.
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.
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 SEP IRA. $0 commission for online US stock, ETF, and options trades.*^†
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. Each employee must open an individual SEP IRA account. As an example, for a sole proprietor April 18 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.
Deadlines	SEP IRAs must be established and funded by your tax filing deadline plus applicable extensions.
How to make contributions	Deposit checks by mail or through mobile deposit, contribute online through Bill Pay or via EFT, or call us. Always be sure to include your account number with your contributions. Learn more

For SEP IRA
get started online

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

Investing involves risk, including risk of loss.

$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs), and options (+ $0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions^® are subject to different commission schedules.

†

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

No account fees or minimums to open Fidelity retail IRA accounts. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs), and commissions, interest charges, and other expenses for transactions, may still apply. See Fidelity.com/commissions for further details.

2. Most SEPs require employers to contribute to each employee's plan at the same percentage of their salary/wages. For this reason, SEPs are rarely chosen by those with greater than 20 employees.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

903811.7.0

Contribution methods depend on the business structure, and include:

Mobile check deposit through Fidelity mobile app (account owner must log in)
Electronic funds transfer (ETF) from a personal bank account (generally only for sole proprietors.)
On Fidelity.com from an individual account (only for Sole Proprietors)
By check, mailed or deposited at an investor center. (Deposit Slip) If funding multiple accounts with one check, please include a spreadsheet with the instructions to split between accounts.
By BillPay from a business bank account that mails a check
By phone through a representative from a corporate account, and other accounts depending on business structure (certain limits apply)
By wireLog In Required

See all SEP IRA FAQs

Mutual Funds and Mutual Fund Investing - Fidelity Investments

Questions

Key things to know

Ready to get started?

Contribution methods depend on the business structure, and include: