SEP IRA An easy-to-maintain plan for a company with up to 4 employees1

With employer-only contributions, Fidelity's SEP IRA makes it easy to maximize tax-deductible contributions for a small business or a self-employed individual.


Open a SEP IRA


Compare all small business plans

Benefits of a Fidelity SEP IRA


Low maintenance

Save time and simplify plan administration with employer-only contributions.


High contribution limit

Employers can contribute up to 25% of an employee's salary, up to $72,000 annually.


Hands-off investing option

Fidelity Go® robo-advisor can do the investing for you, keeping you on track.

Lower taxes today, with tax-advantaged savings for tomorrow


A SEP (Simplified Employee Pension Plan) IRA simplifies retirement savings for you and typically up to 4 employees.


  • Employer-only contributions are tax-deductible
  • Investment growth for employees is tax-deferred
  • No IRS filings or reporting
  • Quick account setup and management with Fidelity’s comprehensive digital experience
  • Flexibility to change your annual contributions

How a SEP IRA works



  1. To start, open your account online in just minutes. Each eligible employee will need to open their own account
as well.
  2. Once each SEP IRA is opened, employers can make tax-deductible contributions online. Keep in mind, each eligible employee must receive the same percentage.
  3. After each SEP IRA is funded, employees have the potential for tax-deferred growth for their retirement.
  4. Finally, as the business owner, understand your plan maintenance responsibilities with our help.

Open a SEP IRA

Whether you want to be hands-on or hand-off investor, we have a SEP IRA that fits your investing style.

Select your own investments

Manage your own portfolio using our free planning tools.2


  • No minimum to open an account—invest with as little as $13
  • Choose from a broad range of investment options, including those designed for retirement such as target date funds

Open an account

Investments personalized for you

Fidelity Go® is one of several managed account services that can help you with both financial planning and investing.


  • No minimum to open an account—invest with as little as $104
  • $0 advisory fee for balances under $25K (0.35% for balances of $25K+)5
  • Designed for investing goals of 3+ years

Get startedFidelity Go

Fidelity has you covered

A wide range of investments: Your employees can invest these contributions in a broad selection of stocks, bonds, mutual funds, and ETFs.


View investment options

Not sure if a SEP IRA is right for you?: Our easy online tool can help identify a small-business retirement plan that fits you.


Help me find my retirement plan match

Frequently asked questions

  • Who is a SEP IRA appropriate for?
    • Small business owners who are comfortable making all of the contributions. The SEP IRA is funded only by employer contributions, not by employee salary deferral.
    • Self-employed individuals who are interested in contributing more to their retirement savings than a traditional or Roth IRA allows but do not want the administrative responsibilities of a 401(k).
    • An individual who participates in their employer's retirement plan can open a SEP IRA if they have self-employed income.
    • The SEP IRA is not appropriate if the business owner wants to have more restrictive eligibility requirements, or allow employees to participate in a salary deferral feature.
  • Can I have a SEP IRA for my business if I also have a retirement plan at another job where I am not an owner?

    Yes, you can have a SEP IRA for your business if you have a retirement plan at another company that you do not own.

Ways to contribute

Build your savings today by using one of the following options:


Electronic funds transfer (EFT)

Move money from an external bank to your Fidelity account.



Contribute nowLog In Required

Transfer from a Fidelity account

Make a contribution from a Fidelity account.



Contribute nowLog In Required

Mobile check deposit

Using your phone or mobile device, deposit in a snap using just your camera and the Fidelity app.



Download app

Contributions limits

Contribution type 2025 maximum 2026 maximum
Contributions are made by the employer only. Each eligible employee must receive the same percentage Between 0% and 25% of compensation to a maximum of $70,000 Between 0% and 25% of compensation to a maximum of $72,000

Note: The employee salary deferral contribution has one overall annual limit that's aggregated between your traditional and Roth contributions to a SIMPLE IRA.


Want to calculate your limit based on your personal circumstances? Use our fast and easy Small Business Retirement Plan Contribution Calculator.


Contribution deadlines

Employer contributions must be completed by the business's tax filing deadline, including extensions.

Ways to move outside accounts to a Fidelity SEP IRA

If you have retirement accounts elsewhere, you can still take advantage of Fidelity's SEP IRA.

Have an existing SEP IRA elsewhere?
Transferring to Fidelity is fast and easy.


Transfer all or part of your non-Fidelity SEP IRA—including stocks, bonds, mutual funds, and other security types—without needing to sell your investments.2


Start a transfer

How to roll over an old workplace plan to a Fidelity SEP IRA

If you have an old workplace retirement account, such as a 401(k), you have the option to roll it over into a SEP IRA. Be sure to consult with a tax advisor before making a change to your retirement plan.  If you decide to rollover assets, here are the steps:

  1. Start by opening a Fidelity SEP IRA online
    We'll walk you through it, step by step.
  2. Initiate the rollover of your money by calling your workplace plan provider or using their website
    They may require forms, like a Letter of Acceptance (LOA) from Fidelity, or their own paperwork, signed by you or Fidelity. You can create an LOA onlineLog In Required .
  3. Deposit your money in your Fidelity SEP IRA
    Your old workplace plan provider will give you a choice:

    •  Have your old provider send the money directly to us, or

    •  Deposit it yourself


    You have multiple options for sending the money to Fidelity. If by check, make it payable to Fidelity Investments, FBO [name of plan participant] . Checks do not need to be endorsed and should include your Fidelity SEP IRA account number.

    Please note: Your rollover will be deposited in cash. You will be responsible for investing your money as a next step.

Frequently asked questions

  • What are the eligibility requirements for a making a SEP IRA contribution?
    • Self-employed individuals or small businesses that are structured as sole proprietorships, partnerships, C corporations and S corporations can establish and contribute to a SEP IRA.
    • Employers can customize eligibility requirements within limits, and can change them from year to year.
      To be eligible an employee must:
      • Have reached age 21
      • Have performed services for your business in 3 or more of the last 5 years
      • Have received at least $750 in compensation from your business during the current year
      • Be covered under collective bargaining agreements
      • Be non-resident aliens that did not earn U.S. sourced income
    • The owner/employer is also considered an employee and must meet the same eligibility requirements.
    • For any contributions to be made, all eligible employees must be included.
  • Can I contribute to a SEP IRA and a traditional IRA or Roth IRA in the same year?

    Yes, you can contribute to both a SEP IRA and either a traditional IRA or Roth IRA (presuming you meet income limit requirements) in the same year. The deductibility of traditional IRA contributions may be impacted by the SEP IRA contribution.

  • How much can I contribute to my SEP IRA?
    • The maximum contribution is 25% of compensation.
    • The definition of compensation differs with business structure.
    • All eligible employees must receive the same percentage of compensation.
    • Use the Small business retirement contribution calculator to help you determine the amount you may be able to contribute.
  • How are SEP IRA contributions reported?

    Fidelity reports SEP IRA contributions on IRS Form 5498 in the year they are made, which may not be the deduction year. A common misconception is that the reporting should mirror the contribution year reporting for traditional and Roth IRAs. It is the employer's responsibility to claim the deduction for the appropriate tax year.

  • What other ways can I contribute?

    Once you've opened your SEP IRA plan, you can fund your account by:

    • Electronic funds transfer (EFT) from your bank
    • Transfer from another Fidelity account
    • Mobile check deposit

    You also have 2 additional ways to fund your account:

    • Bank wire
    • Billpay service from a non-Fidelity account

Get started with your activated SEP IRA


Now that you've established your plan, you must:


  1. Notify your eligible employees of the plan.
  2. Provide your eligible employees with a copy of the 5305-SEP. View details in the next section.
  3. Have them set up their SEP IRA accounts to receive the company contribution and have them provide you with the information to fund their accounts.
  4. Make your contributions before the deadline. For more information on contributions and deadlines, see Contribute to your SEP IRA.

Remember to follow the 5305-SEP terms


Your plan's governing documents include IRS form 5305-SEP and the Fidelity IRA Custodial Agreement and Disclosure Statements.


It's important to read the 5305-SEP and familiarize yourself with the information and rules for your plan.


While there's typically no special tax filing for the SEP IRA, the 5305-SEP states that there are certain steps the employer must take to qualify for relief from the annual 5500 filing.


The 5305-SEP covers what you need to know about your eligibility to offer this plan, the eligibility of employees, contribution limits, and more.

Updating your plan document


If you change any of the information you provided on the 5305-SEP from year to year, you'll need to fill out a new version and provide that to your eligible employees. It's a good idea to keep any 5305-SEP that you have completed for your records and in the event of an IRS audit.


Correcting errors of operation


If an error is made operating your plan, it's your responsibility as the employer to make necessary corrections. You may wish to review the IRS SEP Plan Fix-It Guide from the IRS and/or consult a tax advisor.

One of the most common errors is over-contributing to an employee's SEP IRA. A good practice is to double check all contributions before making them. Over-contributing can be hard to correct, costly, and difficult to properly report to the IRS. If you find that you've over-contributed and need to remove funds from the account(s), please fill out the SEP IRA Return of Excess Contribution Request form (PDF) and return it to Fidelity for processing. Note: Funds must be in cash to be distributed.

Frequently asked questions

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Have more questions?

Call 800-544-5373 and say "Small Business Retirement"

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