- Self-employed individuals, owner-only businesses, and partnerships can now save more for retirement through a tax-free 401(k) plan
BOSTON, December 3, 2025 -- Fidelity Investments® has announced the launch of its Roth Self-Employed 401(k), a new retirement savings option for small businesses that furthers the firm’s commitment to expanding retirement savings benefits for more Americans.
With the Roth Self-Employed 401(k), self-employed individuals or small business owners with no employees other than a spouse can now choose to make after-tax, salary-deferred contributions to a Roth account within their existing Self-Employed 401(k) plan. This is particularly timely for high earners, as a SECURE 2.0 act provision will require certain individuals with W-2 income earning more than $145,000 for tax year 2025 to make all catch-up contributions to a Roth account starting in 2026[1]. In fact, recent Fidelity research finds interest in Roth savings vehicles is increasing among many retirement savers, likely in large part due to their tax-efficiency over the long term.
“Self-employed individuals face unique challenges when planning for retirement since they are not able to leverage more traditional workplace savings options,” said Roger Morrisette, Vice President of Small Business Retirement Products at Fidelity. “Not only do they juggle the day-to-day operations of a business, they are also navigating the most effective way to secure their financial future. A Roth option within the 401(k) can offer greater clarity around how much savings will be available in retirement since that portion has already been taxed.”
Fidelity has offered its traditional Self-Employed 401(k) since 2003. Funded through a combination of employee deferrals and employer contributions, these accounts enable small business owners to maximize the amount they can save. Fidelity’s Roth Self-Employed 401(k) now joins Fidelity’s comprehensive suite of retirement solutions tailored for small business owners, which also includes SEP IRAs, SIMPLE IRAs and Fidelity Advantage 401(k)SM, a Pooled Employer Plan.
Small business owners interested in adding a Roth option to their existing Self-Employed 401(k) or opening a new plan can start here. To compare retirement plan options and find the best fit for their business, they can learn more here.
About Fidelity Investments
Fidelity’s goal is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $17.5 trillion, including discretionary assets of $6.8 trillion as of September 30, 2025, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 79 years, Fidelity employs more than 78,000 associates across the United States, Ireland, and India. For more information about Fidelity
Investments, visit https://about.fidelity.com/.
Investing involves risk, including risk of loss.
Past performance is no guarantee of future results.
Views expressed are of the date indicated, based on the information available at that time, and may change based on market or other conditions. Fidelity does not assume any duty to update any of the information.
###
Fidelity Brokerage Services LLC, Member NYSE, SIPC,
900 Salem Street, Smithfield, RI 02917
Fidelity Distributors Company LLC,
900 Salem Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC,
245 Summer Street, Boston, MA 02205
1219691.1.0
© 2025 FMR LLC. All rights reserved
[1] Starting in 2026, Section 603 of Secure Act 2.0 requires 401(k) plans to require catch up contributions to be on made a Roth basis for any plan participant that makes in excess of $145,000 as of 2025. The amount increased to $150,000 for 2026 as it is indexed to inflation.
