SEP IRAs let small business owners and the self-employed contribute up to $69,000 per employee with tax-deductible dollars and minimal paperwork. We compared the top five providers on fees, fund selection, and ease of setup so you can pick the right one.
A Simplified Employee Pension (SEP) IRA lets small business owners and self-employed individuals contribute up to 25% of each eligible employee's compensation, with a maximum of $69,000 per person in 2024.3 Contributions are tax-deductible, grow tax-deferred, and the plan requires far less paperwork than a 401(k) — no annual IRS filing is required.3
The catch: if you contribute for yourself, you must contribute the same percentage of compensation for every eligible employee.3 That makes SEP IRAs especially attractive for solopreneurs or very small teams where the equal-percentage rule isn't a dealbreaker.
We compared the top SEP IRA providers on the factors that matter most to small business owners:127
All five providers below offer $0 commissions on online stock and ETF trades, but they differ in fund selection, account minimums, and the availability of automated investing options.
Fidelity stands out for combining $0 account minimums, no maintenance fees, and a broad investment selection that includes proprietary zero-expense-ratio index funds.4 The online SEP IRA setup process is straightforward, and Fidelity's education center is among the best in the industry for business owners learning the ropes.1
If you want one provider that does everything well — low costs, wide fund access, and strong support — Fidelity is the pick.
Schwab matches Fidelity on cost ($0 commissions, no account minimum) and adds an extensive list of no-transaction-fee mutual funds.5 Where Schwab pulls ahead is customer service: dedicated small-business support and consistently top-rated phone and chat assistance make it a strong choice for owners who want a human to call.17
Vanguard built its reputation on low-cost index funds, and its SEP IRA is ideal for buy-and-hold investors who want to keep expense ratios as close to zero as possible.6 With $0 commissions and access to Vanguard's industry-leading index fund family, this is the pick for cost-conscious owners who plan to set a simple allocation and stick with it.2
ETRADE shines for small business owners opening their first retirement plan. The platform offers $0 commissions, $0 minimum, and a robust educational library with daily webcasts and articles.2 If you're new to retirement planning and want a provider that'll teach you the basics while you build your portfolio, ETRADE is a solid choice.
For owners who'd rather not pick individual funds at all, Schwab Intelligent Portfolios offers automated, diversified portfolios with a 0% advisory fee.5 The trade-off is a $5,000 minimum investment. If you want true set-and-forget investing inside your SEP IRA, this is the most cost-effective robo-advisor option among the major providers.1
| Feature | Fidelity | Schwab | Vanguard | E*TRADE | Schwab Intelligent |
|---|---|---|---|---|---|
| Account minimum | $0 | $0 | $0 | $0 | $5,000 |
| Commissions | $0 | $0 | $0 | $0 | 0% advisory fee |
| Investment selection | Widest | Extensive NTF funds | Index fund focus | Solid + education | Automated portfolios |
| Robo-advisor | Fidelity Go | Schwab Intelligent | Vanguard Digital | — | Built-in |
| Education | Excellent | Strong | Good | Best for beginners | Moderate |
SEP IRAs are simpler than 401(k)s in several ways: no annual filing requirement, flexible contribution amounts (you can skip years), and minimal administrative overhead.3 The main limitation is the equal-percentage rule — you must contribute the same percentage of compensation for all eligible employees, which can get expensive for businesses with several staff members.3
For solopreneurs, freelancers, and very small teams, a SEP IRA often delivers the highest contribution limits with the least hassle. If you have growing headcount, a SIMPLE IRA or solo 401(k) may be worth comparing.
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