Best SEP IRA Providers for Small Business Owners
Dec 15, 2025
Running a small business means wearing a lot of hats. You are the boss, the planner, the problem-solver, and often the one worrying about taxes at night. Retirement planning usually falls somewhere near the bottom of the list. Not because it is not important, but because it feels confusing, time-consuming, and easy to put off.
That is where a SEP IRA can help. It is simple, flexible, and powerful. But choosing the right SEP IRA provider is just as important as choosing the plan itself. The provider you pick affects your fees, your investment choices, how easy the account is to manage, and how smooth things are if you ever add employees.
This guide focuses on exactly that. Not definitions. Not theory. Real comparisons that help you choose.
In this guide, you will learn:
Which SEP IRA providers are best for small business owners
Which providers work best for freelancers, startups, and small teams
How to choose the right SEP IRA provider for your business
Let’s get started!
Best SEP IRA Providers at a Glance
If you want the short answer first, here it is.
Best overall SEP IRA provider: Fidelity
Best low-fee SEP IRA provider: Charles Schwab
Best SEP IRA for self-employed and freelancers: Vanguard
Best hands-off SEP IRA option: Betterment or Wealthfront
Below, we break each one down in detail so you can see why they rank where they do.
Comparison Table: SEP IRA Providers for Small Business Owners
Here is a simple side-by-side look at the top SEP IRA providers.
Provider | Account Fees | Minimum Balance | Investment Options | Best For |
Fidelity | No setup or annual fees | None | Stocks, ETFs, mutual funds | Best overall |
Charles Schwab | No setup or maintenance fees | None | Stocks, ETFs, funds | Lowest fees |
Vanguard | No setup fee, small annual fee under $100k | None | Mutual funds, ETFs | Long-term investors |
E*TRADE | No annual fee | None | Stocks, ETFs, funds | Active investors |
Merrill Edge | No annual fee | None | Stocks, ETFs, funds | Bank of America clients |
Betterment | 0.25% annual fee | None | Automated portfolios | Hands-off investors |
Wealthfront | 0.25% annual fee | None | Automated portfolios | Simple investing |
This table gives you the big picture. Now let’s look deeper.
In-Depth Reviews of the Top SEP IRA Providers
Now let’s look at each major provider more closely.
Fidelity
Why does it rank best overall?
Fidelity checks almost every box for small business owners.
Key features
No setup fees
No annual account fees
No minimum balance
Commission-free stocks and ETFs
Investment options
Stocks
ETFs
Mutual funds
Target-date funds
Pros
Very low cost
Excellent research tools
Strong customer service
Cons
It can feel overwhelming for beginners
Best for
Small business owners who want flexibility, low fees, and full control.
Charles Schwab
Why is it the best low-fee option?
Schwab is known for cost control and simplicity.
Key features
No setup or maintenance fees
No minimum balance
Wide range of investments
Investment options
Stocks
ETFs
Mutual funds
Pros
Excellent customer support
Simple platform
Strong education tools
Cons
Fewer proprietary funds than Fidelity
Best for
Owners who want the lowest ongoing costs with solid support.
Vanguard
Why do long-term investors like Vanguard?
Vanguard is famous for low-cost investing.
Key features
No setup fee
Small annual service fee for smaller accounts
Focus on index funds
Investment options
Mutual funds
ETFs
Pros
Extremely low fund expense ratios
Great for buy-and-hold investors
Cons
The platform feels basic
Fewer tools
Best for
Self-employed owners focused on long-term growth.
E*TRADE
Why do active investors choose E*TRADE?
E*TRADE shines if you like hands-on investing.
Key features
No annual account fees
Advanced trading tools
Investment options
Stocks
ETFs
Mutual funds
Pros
Strong platform
Good research tools
Cons
Less beginner-friendly
Best for
Experienced investors who want more control.
Merrill Edge
Why do Bank of America clients prefer Merrill?
Merrill Edge integrates well with banking.
Key features
No annual fees
Strong research
Investment options
Stocks
ETFs
Mutual funds
Pros
Banking integration
Premium research access
Cons
The platform feels dated
Best for
Owners who already bank with Bank of America.
Betterment
Why does Betterment stand out?
Betterment is designed for business owners who want retirement investing done for them.
Key highlights
Fully automated investing
0.25% annual advisory fee
No account minimums
Professionally diversified portfolios
Investment approach
ETF-based portfolios
Automatic rebalancing
Tax-efficient asset placement
Best for
Busy small business owners who prefer simplicity over control.
Not ideal for
Owners who want to pick individual stocks or funds.
Wealthfront
Why is Wealthfront different?
Wealthfront focuses on automation with a tech-first approach.
Key highlights
0.25% annual advisory fee
No minimum balance
Automatic portfolio management
Investment approach
ETF portfolios
Automatic rebalancing
Goal-based investing tools
Best for
Solo owners and freelancers who want a simple, modern platform.
Not ideal for
Businesses with multiple employees or complex needs.
Best SEP IRA Provider by Business Type
Not every business needs the same thing. The best SEP IRA provider depends on how you work and who you work with.
Best SEP IRA for Sole Proprietors and Freelancers
If you work alone or freelance, you usually want three things. Low fees, easy setup, and flexibility.
Top picks: Fidelity and Vanguard
Easy online setup
No required yearly contributions
Simple account management
Fidelity is often the best choice here because there are no account fees and no minimum balances. Vanguard is also strong if you like long-term, low-cost investing.
Best SEP IRA for Small Businesses With Employees
When you have employees, things get more serious. You must contribute the same percentage of pay for everyone. That means administration matters.
Top picks: Fidelity and Charles Schwab
Clear employee setup process
Strong customer support
Simple paperwork
These providers make it easier to handle multiple SEP IRA accounts without confusion.
Best SEP IRA for Startups and New Businesses
Startups often have uneven income. Some years are great. Others are tight.
Top picks: Fidelity and Schwab
No required yearly contributions
No penalties for skipping a year
No account maintenance fees
This flexibility is one of the biggest reasons startups choose SEP IRAs in the first place.
Best SEP IRA for Hands-Off Business Owners
If you do not want to pick investments or rebalance portfolios, robo-advisors may be a better fit.
Top picks: Betterment and Wealthfront
Automatic investing
Diversified portfolios
Very little work is required
The trade-off is cost. You pay about 0.25 percent per year, which adds up over time. Still, for busy owners, this simplicity is worth it.
How to Choose the Right SEP IRA Provider
Use this simple checklist.
Choose a provider that:
Has no or very low fees
Is easy to set up
Offers investments you understand
Can handle employees if needed
Fits your comfort level
If you want control, choose a brokerage.
If you want simplicity, choose a robo-advisor.
Final Thoughts
Choosing the best SEP IRA provider is not about finding a perfect option. It is about finding the right option for how your business works today.
For most small business owners, Fidelity or Charles Schwab will be the best place to start. If you want hands-off investing, Betterment or Wealthfront can make life easier. And if you love low-cost index funds, Vanguard remains a solid choice.
Pick a provider that keeps things simple, affordable, and flexible. Your future self will thank you.
If you want extra guidance, consider speaking with a financial professional who can help you choose the right SEP IRA based on your income, business structure, and long-term retirement goals. A little expert advice now can save you time, money, and stress later.
Moreover, if you’re new to SEP IRAs, check out our full guide on what a SEP IRA is and how it works.
Frequently Asked Questions
What is the best SEP IRA provider for small business owners?
Fidelity is the best overall choice for most small business owners due to low fees and flexibility.
Which SEP IRA provider has the lowest fees?
Charles Schwab and Fidelity both offer no setup or annual account fees.
Can I open a SEP IRA completely online?
Yes. Most major providers allow full online setup.
Can I change SEP IRA providers later?
Yes. You can transfer a SEP IRA to another provider without taxes if done correctly.
Are SEP IRAs better for self-employed or small teams?
They work well for both, but having employees increases the cost because contributions must be equal.