SEP IRA

Learn how a SEP IRA is a practical savings option for business owners.

Saving for retirement shouldn’t be a hassle for small business owners or self-employed individuals. Prepare for your future with a SEP IRA. 

Open a SEP IRA

For other IRA options, check out SoFi's Roth IRA and traditional IRA accounts.

What is a SEP IRA?

A Simplified Employee Pension (SEP) IRA is a retirement account—similar to a traditional IRA—for self-employed individuals and small business owners. It lets you make tax-deductible contributions and grow your savings tax-deferred until retirement.

How does a SEP IRA work?

Who’s eligible for a
SoFi SEP IRA?

To be eligible for a SoFi SEP IRA, you need to either be self-employed or a small business owner. SoFi doesn’t support multi-participant SEP IRAs. If you have employees, they aren’t eligible. 

Who contributes funds to a SEP IRA?

As the employer, you contribute funds to your own 
SEP IRA. 

Contribution
limits

In 2024, you can contribute up to 25% of your total net earnings with a maximum of $69,000 in 2024. 

Withdrawals

You may be subject to a 10% penalty if you withdraw before age 59 ½. Required minimum distributions begin at age 72 (or age 73, if you reach age 72 after Dec. 31, 2022). 

Why choose a SoFi SEP IRA.

Tax-deferred earnings.

With a SEP IRA, your retirement savings won’t be taxed until you withdraw.

Contribute more.

The contribution limits of a SEP IRA are much higher than a traditional IRA.

Various investment options.

From stocks, ETFs, alternative assets and more, there are a variety of investment options to choose from. 

Easy and flexible.

There are no fees to establish a SoFi SEP IRA. Other fees apply. Plus, the plan is easy to manage and doesn’t require much paperwork. 

How to open a SEP IRA with SoFi:

  • Select your IRA account type.

    Select SEP IRA as your account option. 

  • Select how you'd like to invest.

    You have the option to invest your money exactly how you want to or you can share your goals with us and we’ll do it for you. 

  • Open an account.

    Open an investment account through SoFi and share a few personal details. 

Open a SEP IRA

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FAQs


Both SEP IRAs and solo 401(k)s offer tax benefits and saving options for retirement. However there are a few differences. SEP IRAs have higher contribution limits and are a better option for small businesses that have employees (note that SoFi doesn’t support multi-participant IRAs). Solo 401(k)s offer Roth options and loans. 
While a SEP IRA may be a great option for small business owners, there are a few considerations to keep in mind:

• There are penalties for early withdrawals.
• No catch-up contributions, however, the contribution limits are much higher for SEP IRAs.
• You can’t take a loan from your SEP IRA savings. 
• There isn’t a Roth option.

No. You can open a SoFi SEP IRA at no cost.
In 2024, you can contribute up to 25% of your net earnings, but no more than $69,000. 
You’ll pay income taxes when you withdraw in retirement. You may also be subject to a 10% tax penalty for withdrawing before age 59 ½.
A SoFi SEP IRA account holder will pay taxes on their withdrawals during retirement. For multi-participant SEP IRAs, employers can claim a tax deduction for contributions they make to their employees SEP IRAs. SoFi doesn’t offer multi-participant SEP IRAs, however.
Similar to other retirement plans, you can withdraw your contributions and earnings any time, but you may have to pay a tax penalty if you withdraw before age 59 ½.
Yes, you can have a SEP IRA without employees. In fact, SoFi only offers solo SEP IRAs. 

 Save more for retirement
with a SEP IRA today.

Open a SEP IRA