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.

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.


Must be made by the employer and can vary each year between 0% and 25% of compensation (maximum $57,000 for 2020 and $58,000 for 2021). Each eligible employee must receive the same percentage.


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 required starting at age 72.3


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


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.*^


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 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.


SEP IRAs must be established and funded by your tax filing deadline plus applicable extensions.

How to make

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.

Ready to get started?

For SEP IRA or a Simple IRA,
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