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.

Get form 5305-SEPHelp

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.


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 $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 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.


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.


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

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

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.


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.