Best SEP IRA Plan Provider in 2024

Best no-fee, low cost SEP IRA plan provider. Top rated SEP IRA account brokerage company for self employed investing.

Etrade IRA Commissions
Stocks and ETFs $0
Options $0.65 per contract
Mutual funds $0
Bonds $1 per bond with $10 minimum, $250 maximum
Futures $1.50 per contract, per side + fees
Certificates of Deposit (CDs) $24.95

* - 50 cents per options contract for users who make 30 or more trades in the prior calendar quarter.

Etrade SEP IRA Fees

  • IRA setup fee: $0
  • Annual IRA fee: $0
  • IRA termination fee: $0
  • IRA premature distributions, removing excess contributions, and recharacterizations: $25

Etrade SEP Plan Overview

Retirement savers looking for an IRA should check out Etrade. With a wide selection of different types of Individual Retirement Accounts along with good customer service, investors saving for life after work can do well here.

Etrade IRA Types

Etrade offers investors several different IRAs. The broker's clients can open Roth, Traditional, SIMPLE, or SEP accounts. The firm also offers a OneStop Rollover. This account converts a 401(k) into a professionally-managed IRA. It is supervised by Etrade Capital Management, and the minimum rollover amount is $10,000.

The broker also offers a Beneficiary IRA (in both Roth and Traditional formats). It is a type of inherited account. It is created by a beneficiary of a Roth, Traditional, SEP, or SIMPLE account.

Retirees at Etrade can open a Complete IRA. This type of retirement account is for people over the age of 59½. Account holders can make withdrawals with a debit card, checks, and bill pay.

An IRA for Minors is also available at Etrade. This product is a Roth or Traditional account that is opened in the name of a legal minor who has earned income for the tax year.

Etrade has retirement specialists available at 1-877-921-2434 who can assist people with questions about any of the firm's IRAs.

Best SEP IRA Plan

Etrade IRA Costs

An IRA with Etrade comes with no setup, inactivity, or annual fees. Paper statements do cost $2. Making any type of early withdrawal (before the age of 59½) carries a $25 fee. Excess contributions are also assessed a $25 charge. Another $25 charge, a recharacterization fee, is applied to a Roth IRA conversion that is converted back to a Traditional, or when a contribution is changed from a Roth to a Traditional.

Inside a retirement account, Etrade customers pay the same commission schedule as any other account pays. The broker charges $0 for stock and ETF trades that are placed on-line. Alternatively, traders can buy and sell securities using a living, breathing broker over the phone. This route costs an additional $25.

IRA Tools

A good library of calculators and educational materials are on the Etrade website to help retirement savers manage their own retirement accounts. For example, the broker has a helpful tool that guides users step-by-step to help determine whether a Roth or Traditional IRA would be a better choice.

Best SEP IRA Account

A retirement distribution tool helps investors calculate if and when distributions should be taken from an IRA. Helpful advice is also given by the tool. This advice covers certain situations, such as when an account has both deductible and non-deductible contributions, or when an account has investment losses.

Best SEP IRA: Retirement Calculator

Other resources include an IRA rollover tool, a calculator that determines required minimum distributions from an account, a conversion calculator, a small business plan selector, and an IRA beneficiary calculator.

Besides calculators and tools, the Etrade website also has good educational resources for retirement savers. Articles cover topics such as contribution limits, saving for retirement, and portfolio management during retirement. There is also information on retirement plans for small businesses and a FAQ covering important requirement issues. Videos and web seminars cover topics such as setting retirement goals and retirement planning.

Funds for IRAs

Retirement savers interested in mutual funds won't be disappointed with Etrade. The broker offers over 4,200 funds with no transaction fee and no load. In total, there are more than 8,000+ mutual funds available to trade.

Seventy target-date mutual funds are available at Etrade. Some of them have no load and no transaction fee. These products are ideal for retirement savers. Each fund has a target date, such as 2035, that is the expected date of retirement. As the date approaches, the fund becomes more conservative in its investment strategies, taking on less equity and more debt.

Etrade clients who aren't interested in mutual funds should consider commission-free ETFs. All exchange-traded funds now cost nothing to buy and sell. Many of these ETFs have investment objectives that will appeal to retirement savers, such as a dividend fund and a real estate fund. Many ETFs have expense ratios below 1.00%, and some are below 0.50%.

Etrade IRA Review: Distributions

Best SEP IRA Conclusion

Etrade customers who are trying to save for retirement can find good resources on the broker's website. With excellent pricing and large selection of IRA investments and funds the firm offers one of the best SEP IRA plans on the market today.