The best online investing platforms for SEP IRA in 2026 are Ark7, Charles Schwab, Fidelity, investor.vanguard.com, Betterment, Merrill Edge, and SoFi, with Ark7 listed first for offering self-employed investors a self-directed Traditional or Roth IRA option to hold fractional rental real estate shares.
- Ark7 – fractional rental real estate shares held inside a self-directed IRA
- Charles Schwab – full-service brokerage with stocks, options, futures, and forex
- Fidelity – brokerage and wealth management platform covering stocks, ETFs, and crypto
- investor.vanguard.com – cash management account with bank sweep and money market funds
- Betterment – automated and self-directed investing with retirement plan administration
- Merrill Edge – self-directed and advisor-managed brokerage accounts
- SoFi – banking, lending, and investing products including self-directed and robo investing
| Platform | Asset Class / Product Focus | Minimum Investment | Income / Return Mechanism |
|---|---|---|---|
| Charles Schwab | Stocks; ETFs; options; bonds; CDs; mutual funds; futures; forex | Not published | Not published |
| Fidelity | Stocks; ETFs; crypto; retirement; wealth management | Not published | Not published |
| investor.vanguard.com | Cash savings alternative; money market funds | $3,000 minimum each for money market funds | Bank sweep (FDIC-eligible); money market fund yields |
| Betterment | Automated investing; cash; checking; retirement; 401(k) | $0-$24K: $5/mo; Premium: $100,000 min | Not published |
| Merrill Edge | Self-directed & managed investing (stocks, ETFs, options) | $1,000 (Guided Investing); $20,000 (Guided Investing with Advisor) | Not published |
| SoFi | Banking, credit cards, investing, loans, crypto, insurance | Not published | Not published |
Self-employed retirement savings is no longer a niche question. The rest of this guide breaks down what each provider actually offers, how SEP IRAs work mechanically, and how to pick one without guessing.
Why Self-Employed Workers Are Shopping for a SEP IRA Now
Freelancing, consulting, and small-business ownership have become durable parts of the economy, not a side hustle phase. The Bureau of Labor Statistics counted 12.1 million business establishments and 155.7 million employed workers in 2025, a tally built from employer payroll records.
The BLS tally, by the agency’s own description, excludes proprietors and the unincorporated self-employed, which means the actual population of people running their own businesses without a traditional payroll is larger than payroll data alone suggests.
The gap between payroll-counted workers and the self-employed matters for retirement planning. People who work for themselves don’t get an employer 401(k) match or an HR department reminding them to enroll. A SEP IRA fills that gap by letting a business owner contribute on their own behalf, with contribution limits far above a standard IRA. Choosing where to open one determines not just the account’s cost structure but what you’re allowed to invest in once the money lands. This article compares the platforms self-employed investors actually consider, including one that adds an asset class the rest of this list does not offer.
Key Takeaways
- SEP IRA contribution limits dwarf standard IRAs. For 2026, SEP contributions can reach 25% of compensation or $72,000, whichever is lower, compared to a $7,500 limit for a standard IRA.
- Fee structures vary widely by provider type. Traditional brokerages often charge $0 commissions on trades but add account-level or advisory fees; alternative-asset custodians charge flat per-property or per-fund fees instead.
- Minimum investment amounts range from a few dollars to six figures, depending on whether the account is self-directed or professionally managed.
- Most SEP IRA providers restrict holdings to stocks, ETFs, mutual funds, or cash equivalents. Adding a non-correlated asset class like rental real estate requires a self-directed IRA structure.
- Only the employer contributes to a SEP IRA. Employees cannot add their own money to the plan, which simplifies administration for solo business owners.
- A SEP IRA and a Solo 401(k) serve overlapping but distinct needs, and the right choice depends on whether the business has employees and how the owner wants to control contribution timing.
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Explore Ark7 OpportunitiesWhat Defines a Strong SEP IRA Provider in 2026
A good SEP IRA provider should make three things clear up front: cost, investable assets, and entry point. Custodial and management fees matter more for SEP IRAs than standard IRAs because SEP balances tend to be larger, so a percentage-based fee compounds faster.
Asset variety is the second filter. Most providers on this list route SEP IRA money into stocks, ETFs, and mutual funds. A smaller number support self-directed structures that can also hold alternative assets, which matters for business owners trying to diversify retirement savings away from public market volatility. The final filter is practical: how easily a solo founder can open, fund, and manage the account without a dedicated advisor or HR team doing it for them.
Top SEP IRA Providers for 2026
1. Ark7
Ark7 is an online investment platform that lets individuals buy shares in curated rental homes rather than shares of a company or fund. Properties are typically held long-term, and investors can sell shares after a minimum holding period or continue holding for potential appreciation.
For retirement savers, Ark7 offers a self-directed IRA option built on Traditional and Roth IRA structures. There is no fee to open an IRA on the Ark7 platform. The account’s custodian, Inspira Financial Company, charges a $100 annual fee per property invested in, and that fee is capped at $400 per year. If the average account balance exceeds $100,000, the annual fee is waived entirely. These fees apply to Ark7’s Traditional and Roth IRA structures. Because a SEP IRA is structured as a type of traditional IRA under IRS rules, SEP balances may potentially be moved into a self-directed Traditional IRA through a trustee-to-trustee transfer.
What sets Ark7 apart
- Monthly cash flow: investors receive monthly rental distributions directly to their account, rather than waiting on quarterly dividends or fund-level payouts.
- No platform fee to open: Ark7 charges $0 to open the IRA itself; the only cost is the custodian’s per-property fee.
- Fee cap and waiver: the $100 per-property custodial fee is capped at $400 annually and waived above a $100,000 balance.
- Full disclosure access: legal and financial disclosures for each property are accessible 24/7 and readily searchable.
- App Store rating: Ark7 holds a 4.7 rating on the Apple App Store.
Retirement savings built entirely from public securities can leave a portfolio exposed to the same market swings an investor is trying to diversify away from. Adding a physical asset class like rental real estate, inside a tax-advantaged structure, changes that exposure without requiring the investor to buy and manage a property directly.
How to Open an Ark7 IRA as a Self-Employed Investor
Self-employed investors can explore Ark7’s IRA option to transfer an existing SEP IRA through a trustee-to-trustee transfer into a self-directed Traditional IRA structure, a process that does not trigger a taxable distribution and can typically be initiated directly through the Ark7 platform.
2. Charles Schwab
Charles Schwab provides brokerage, banking, and financial advisory services, including self-directed investing, active trading, automated investing, and wealth management. Clients can trade through Schwab.com, the thinkorswim platform, or Schwab’s mobile and API tools, and can also work with a full-service wealth advisor.
Schwab’s retirement account options cover stocks, ETFs, options, bonds, CDs, mutual funds, futures, and forex. According to a SEP IRA comparison, Schwab’s account has no monthly maintenance fees, account minimums, or opening fees, and charges $0 per online trade.
Key Features
- Online stock and ETF trades at $0 commission
- Options trading at $0 base commission plus $0.65 per contract, per Schwab’s own pricing page
- Access to thinkorswim desktop, web, and mobile trading tools
- Futures trading at $2.25 per contract, per Schwab’s own pricing page
- Full-service wealth management available for clients who want advisor support
3. Fidelity
Fidelity offers investing, retirement, health savings, education savings, and wealth management services. Customers can manage their own portfolio or work with Fidelity to build one, choosing from stocks, ETFs, crypto, and other asset classes.
Fidelity’s SEP IRA option is positioned alongside other employer-sponsored retirement plans, including a self-employed 401(k) and a SIMPLE IRA, giving business owners a range of structures to compare within one provider. Clients can also collaborate with a dedicated Fidelity advisor to build a broader wealth management strategy.
Key Features
- $0 account fees and $0 commissions on standard trades
- Ability to trade in any dollar amount, including fractional shares
- Access to stocks, ETFs, and crypto within the same platform
- Collaboration with a dedicated Fidelity advisor for wealth management
- Multiple retirement plan structures available side by side (SEP IRA, self-employed 401(k), SIMPLE IRA)
Pricing
Per Fidelity’s own pricing page, the account structure lists $0 account fees and $0 commissions on standard online trades.
4. investor.vanguard.com
Vanguard’s online platform centers on cash management and index-style investing rather than active trading. Its Cash Plus Account functions as a savings account alternative, sweeping deposits into program banks for FDIC eligibility or into Vanguard money market funds.
For SEP IRA specifically, an independent comparison reports a $0 minimum deposit and a $25 annual fee for Vanguard’s single-participant SEP IRA. A separate review of provider fees found that Vanguard’s single-participant SEP IRA carries a $25 annual fee, while the multi-participant version charges $20 annually for each Vanguard fund held in the account. The same review notes that these fees are generally waived when the account holder signs up for electronic delivery of statements and required notices, which in practice makes the account close to fee-free for most users.
Key Features
- Bank sweep program moving cash into FDIC-eligible program banks
- Access to five Vanguard money market funds for diversification
- Compatibility with PayPal and Venmo for transfers
- Mobile check deposit and bill pay
- No minimum account balance to maintain the Cash Plus Account itself
Pricing
Vanguard’s SEP IRA carries a published $25 annual fee for single-participant accounts and $20 per fund annually for multi-participant plans, both of which are commonly waived with e-delivery enrollment.
5. Betterment
Betterment is an investing, saving, cash, and retirement platform offering both automated and self-directed investing, along with workplace retirement plans including Solo 401(k) administration. Its automated service handles trading, rebalancing, dividend reinvesting, and tax management, while its workplace product provides plan administration, compliance support, and payroll integration.
Key Features
- Automated portfolio construction, rebalancing, and tax management
- Self-directed investing in stocks and ETFs with no trading commissions
- Plan administration and compliance support for Solo 401(k) and workplace plans
- Payroll integrations including Gusto, Trinet, and QuickBooks Online
- High-yield cash account option alongside investment accounts
Pricing
Per Betterment’s own pricing page, the automated investing tier costs $5 per month for balances between $0 and $24,000, or 0.25% annually with a $200+ monthly recurring deposit or a balance between $24,000 and $1 million. The Premium tier costs 0.65% annually and requires a $100,000 minimum balance.
6. Merrill Edge
Merrill Edge offers both self-directed and advisor-managed investing programs: Merrill Edge Self-Directed for building your own portfolio, Merrill Guided Investing for a professionally built and managed portfolio, and Merrill Guided Investing with Advisor for one-on-one advisor access.
Each tier carries its own minimum and fee structure, making Merrill Edge a provider that can scale from a fully self-directed account to a fully advised one within the same institution.
Key Features
- Unlimited $0 online stock, ETF, and option trades through Self-Directed
- Professionally managed portfolios through Merrill Guided Investing
- One-on-one advisor access through Merrill Guided Investing with Advisor
- Idea Builder and Merrill Edge MarketPro research tools
- Personal Retirement Calculator for contribution planning
Pricing
Per Merrill Edge’s own pricing page, Self-Directed charges $0 on online stock, ETF, and option trades, though $0.65 per-contract option fees still apply. Merrill Guided Investing charges 0.45% annually with a minimum investment as low as $1,000, while Merrill Guided Investing with Advisor charges 0.85% annually with a minimum as low as $20,000.
7. SoFi
SoFi’s platform spans banking, credit cards, investing, loans, crypto, and insurance products under one account. Its investing arm includes both self-directed trading and automated robo investing, alongside access to SoFi Coach for broader financial guidance.
Key Features
- Self-directed investing alongside automated robo investing
- Checking and high-yield savings accounts within the same app
- SoFi Coach for financial planning support
- Credit score monitoring and budgeting tools
- Personal loan products available alongside investment accounts
Side-by-Side Comparison Table of All Providers
| Dimension | Ark7 | investor.vanguard.com | SoFi | Fidelity | Charles Schwab | Betterment | Merrill Edge |
|---|---|---|---|---|---|---|---|
| Asset Class / Product Focus | Fractional rental real estate shares | Cash savings alternative; money market funds | Banking, credit cards, investing, loans, crypto, insurance | Stocks; ETFs; crypto; retirement; wealth management | Stocks; ETFs; options; bonds; CDs; mutual funds; futures; forex | Automated investing; cash; checking; retirement; 401(k) | Self-directed & managed investing (stocks, ETFs, options) |
| Minimum Investment | Not published | $3,000 minimum each for money market funds | Not published | Not published | Not published | $0-$24K balance tier: $5/mo (Automated); $100,000 min (Premium) | $1,000 (Guided Investing); $20,000 (Guided Investing with Advisor) |
| Pricing / Fee Structure | $0 Ark7 fee to open; custodian fee per property | $25/year for single-participant SEP IRA; $20/year per fund for multi-participant plans | Not published | Not published | $0 online commission (stocks & ETFs); $0.65/contract (options); futures and OTC equity fees listed on Schwab’s own pricing page | $5/mo (Automated, <$24K); 0.25%/yr (Automated, $24K-$1M); 0.65%/yr (Premium, $100K+ min) | $0 online stock/ETF/option trades (Self-Directed); 0.45%/yr (Guided Investing); 0.85%/yr (Guided Investing with Advisor) |
| Income / Return Mechanism | Monthly rental distributions + potential share appreciation | Bank sweep (FDIC-eligible); money market fund yields | Not published | Not published | Not published | Not published | Not published |
| Access / Platform Coverage | Apple App Store; 10 markets | Online; app; program banks; 5 Vanguard money market funds | Not published | Not published | Schwab.com; thinkorswim desktop/web/mobile; Schwab Mobile; Schwab APIs | Betterment platform; Betterment Advisor Solutions; Betterment at Work | Not published |
| Human / Advisory Access | Not published | Not published | SoFi Coach | Dedicated Fidelity advisor (wealth management) | Full-service wealth management available | Fiduciary services; plan administration (at Work) | One-on-one advisor (Guided Investing with Advisor, $20K+ min) |
| Liquidity / Exit Constraints | Minimum holding period before selling shares; properties typically held long-term | ACH deposits $250,000 daily limit; ACH withdrawals $100,000 daily limit; 7-day holding period possible; 60-day holding for new accounts | Not published | Not published | Not published | Per Betterment’s own pricing page, a $75 flat fee applies per investing account transfer out; Solo 401(k) distribution restrictions apply | Per Merrill Edge’s own pricing page, sales of ETFs are subject to a $0.01-$0.03 per $1,000 transaction fee; $0.65/contract options fee |
How We Chose the Best SEP IRA Platforms
The platform comparison weighed four factors equally: published fee structures, minimum investment requirements, the range of assets each provider supports inside a retirement account, and how clearly each provider discloses its terms. Figures come from provider pages where available and from cited comparison sources where provider pages did not provide the figure. Where a specific figure is unavailable, the table notes that.
What Is a SEP IRA and How Does It Work
A SEP IRA, or Simplified Employee Pension plan, is a retirement account that lets a self-employed person or small-business owner make tax-deductible contributions on their own behalf or on behalf of eligible employees. Only the employer contributes; employees do not add their own money to a SEP IRA. For 2026, SEP contributions can reach 25% of compensation or $72,000, whichever amount is lower, a limit set far above the standard IRA contribution cap.
Contributions are made directly into a traditional IRA structure held in the employee’s or owner’s name, so once funded, the money can generally be invested in whatever the chosen custodian allows: stocks, ETFs, mutual funds, cash equivalents, or, through a self-directed structure, alternative assets.
Because the account is technically a traditional IRA, standard IRA withdrawal rules apply, including penalties for early withdrawal before age 59 and a half.
How to Open a SEP IRA Step by Step
Opening a SEP IRA is simpler than setting up a Solo 401(k) because there is less paperwork and no annual filing requirement in most cases.
The basic steps are:
- Confirm eligibility. Many self-employed individuals and small-business owners, including sole proprietors, partnerships, and corporations, can establish a SEP IRA if they meet the applicable IRS requirements.
- Adopt a formal written agreement. Most employers use IRS Form 5305-SEP to adopt the plan without needing a prototype document from a financial institution, or Form 5306-SEP if using a sponsor’s pre-approved plan.
- Choose a provider. Select a brokerage or custodian and open individual SEP IRA accounts for the owner and any eligible employees.
- Fund the account. Contributions can be made any time up to the business’s tax filing deadline, including extensions, for the relevant tax year.
- Invest the funds. Once the account is funded, choose investments based on what the provider supports, whether that is stocks and funds or a self-directed structure that can hold alternative assets.
SEP IRA Deadlines and the IRS Forms You Need
SEP IRA contributions are not due by December 31. Instead, a business owner can contribute up to the company’s tax filing deadline, including any extension, for that tax year. This gives sole proprietors and small-business owners more flexibility than a standard IRA, which generally has an April deadline with no extension option.
Two IRS forms matter most when setting up the plan itself. Form 5305-SEP is used by an employer adopting a SEP plan without a sponsoring financial institution’s prototype document. Form 5306-SEP is used by financial institutions and other sponsors to get IRS approval for a prototype SEP plan that employers can then adopt. Neither form is filed with the IRS annually; they establish the plan itself, not yearly contributions.
SEP IRA vs. Solo 401(k) vs. SIMPLE IRA: Which Is Right for You
Both a SEP IRA and a Solo 401(k) allow high contribution limits for self-employed individuals, but they differ in flexibility and administration. A SEP IRA only allows employer contributions, calculated as a percentage of compensation. A Solo 401(k) allows the owner to contribute both as an “employee” and as an “employer,” which can produce a higher total contribution at lower income levels. Solo 401(k) plans with no full-time employees other than a spouse are generally restricted to owner-only businesses, and once total assets exceed $250,000, a one-participant plan generally must file Form 5500-EZ or Form 5500-SF, a filing obligation SEP IRAs do not have.
A SIMPLE IRA sits below both in contribution limits but allows employee salary deferrals in addition to employer contributions, and it is often used by small businesses with employees who want to contribute their own money alongside the owner.
For comparison, a standard traditional or Roth IRA caps 2026 contributions at $7,500, with a $1,100 catch-up contribution for savers age 50 or older, far below any of the three self-employed plan types. The right choice depends on whether the business has employees, how much the owner wants to contribute in a given year, and how much administrative overhead the owner is willing to manage.
Calculating Your SEP IRA Tax Deduction
SEP IRA contributions are tax-deductible as a business expense, which reduces taxable income for the year. For a sole proprietor, the calculation is slightly different than for an employee of their own corporation, because the deduction is based on net self-employment income after subtracting half of the self-employment tax owed for the year, rather than gross compensation.
In practice, this means a sole proprietor’s effective maximum contribution rate works out to roughly 20% of net profit. The full 25% rate applies to W-2 compensation for an S-corp or C-corp owner, though the dollar cap is the same $72,000 ceiling for 2026 regardless of business structure. A business owner who is unsure how net self-employment income translates into an allowable contribution should use the worksheet in IRS Publication 560 or consult a tax professional. Getting the number wrong can trigger an excess contribution penalty.
Frequently Asked Questions About SEP IRAs
Can I open a SEP IRA by myself?
Yes. A self-employed individual with no employees can open and fund a SEP IRA on their own, using IRS Form 5305-SEP to adopt the plan and choosing any provider that offers SEP IRA accounts.
Can employees contribute to a SEP IRA?
No. Only the employer contributes to a SEP IRA. Employees cannot add their own salary deferrals to the account, which distinguishes it from a SIMPLE IRA or a 401(k).
Can I contribute to both a SEP IRA and a 401(k)?
Generally yes, if the accounts come from different employment relationships or business structures, though total contributions across all employer-sponsored plans are subject to combined annual limits set by the IRS.
Does a SEP IRA have annual fees?
It depends on the provider and account structure. Some brokerage-style SEP IRAs charge a flat annual fee, such as Vanguard’s published $25 single-participant fee, while self-directed structures like Ark7’s IRA option charge a per-asset custodial fee of $100 per property, capped at $400 annually and waived above a $100,000 balance.
What is the SEP IRA contribution deadline for 2026?
SEP IRA contributions for a given tax year can be made any time up to the business’s tax filing deadline, including extensions. SEP contributions can therefore be made later than the April deadline that applies to standard IRAs, since extensions push the due date further for most business filers.
Do SEP IRAs require Form 5500 filing?
No. SEP IRAs do not require an annual Form 5500 filing. This differs from a Solo 401(k), which generally must file Form 5500-EZ or Form 5500-SF once total plan assets exceed $250,000.
Can a SEP IRA hold ETFs, stocks, and mutual funds?
Yes, at most providers. Traditional brokerage SEP IRAs typically support stocks, ETFs, mutual funds, and bonds. Self-directed SEP IRA structures can also hold alternative assets, such as fractional real estate shares, depending on the custodian.
Can I take a loan from a SEP IRA?
No. SEP IRAs follow standard IRA rules, which do not permit loans against the account balance, unlike some 401(k) plans that allow participant loans.
Self-employed investors comparing SEP IRA providers for 2026 now have a clearer picture of where each platform fits: brokerage-style accounts for public securities, cash management accounts for short-term savings, and a self-directed structure for adding real estate to the mix.
What happens to a SEP IRA if I hire employees?
If you hire eligible employees, you must contribute the same percentage of compensation to each eligible employee’s SEP IRA that you contribute for yourself. This equal-percentage requirement is a key distinction from a Solo 401(k), which is generally restricted to owner-only businesses with no full-time employees other than a spouse.
Real estate investing involves risk, including potential loss of principal. Past performance does not guarantee future results. This article is for informational and educational purposes only and does not constitute investment, legal, or financial advice.
