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 $70,000 annually.


Hands-off investing option

Fidelity Go® robo-advisor can help your employees invest and keep on track

Reduce 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 by the employer/plan sponsor
  • 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

How to make contributions

With a SEP IRA, you have a variety of ways to contribute:

About contributions and annual limits

SEP IRA contributions must be made by the employer and can vary each year between 0% and 25% of compensation (maximum $70,000 for 2025 and $69,000 for 2024). Each eligible employee must receive the same percentage. SEP IRAs must be established and funded by your tax filing deadline plus applicable extensions.

Not sure of your contribution limit? Try our fast and easy Small Business Retirement Plan Contribution Calculator.

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 SEP IRA Contribution Worksheet (PDF) 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.

  • How do I select investments for my SEP IRA?
    • Employees are responsible for investing their own SEP IRAs. The employer has no further responsibility after making the contribution.
    • After funding the account, you can select from a wide range of investment options. These include Fidelity and non-Fidelity mutual funds along with stocks, bonds, ETFs, and CDs.
    • To learn more about your investment options
  • Can my account have automatic investments?
    • Inside the account you can establish automatic investments from the cash core to a mutual fund.
    • Sole proprietors can establish automatic contributions from a bank account by mailing a form.
    • You can send contributions by using a Billpay service that mails recurring checks from your business bank account. Monitor payments to avoid IRS penalties for over-contributing.

How to maintain your plan

The list below of your responsibilities as a retirement plan sponsor does not necessarily cover all of your responsibilities. You may want to consult the IRS or a qualified tax advisor if you have additional questions.


Employer Responsibilities

  • Establish your plan

    To establish your plan, you as the employer must fill out and retain Form 5305 SEP (PDF) by your business' tax filing deadline (including extensions, if filed). Each employee eligible for participation must open a SEP IRA accountLog In Required.

    Note: SEP IRA accounts are in the name of the participating employee only. Neither the company's name nor tax ID appear on the account. If you're the employer, you must obtain the account number and institution where the account is held from your employee to contribute on their behalf.

  • Notify employees of employer contributions and contribute to the account(s)

    a. The deadline to contribute to your participants' accounts is your business' tax filing deadline plus extensions.


    • Contributions must be made by the employer and can vary each year between 0% and 25% of compensation (maximum $70,000 for 2025 and $69,000 for 2024). Each eligible employee must receive the same percentage.
    • If your business is unincorporated and you need help calculating you may use this SEP IRA Contribution Worksheet (PDF).
    • Funding for the company contribution should be done by the company only. To fund from a company account, you may send a check using this deposit slip (PDF).
      • If you choose to contribute from your personal account, you may set up electronic funding online or use our app for a mobile deposit. This may not be appropriate for a company contribution, please see your tax advisor with questions.
  • Abide by the terms of the 5305-SEP

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

    Note: It's important to read the 5305-SEP; this is the IRS document that contains the 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.

  • Update your plan document

    If you change your plan from year-to-year, you'll need to fill out a new 5305-SEP form and retain it in your files along with all previous versions. If you are audited the IRS may ask you for your current contribution agreement and all previous versions.

  • Correct 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 SEP IRA 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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