Freelancers: Say Hello to Our New SEP IRA

Wealthsimple makes powerful financial tools to help you grow and manage your money. Learn more

Being on your own, career-wise, has its plusses and minuses.

Plusses? No boss, no cubicles, no problem if you want to work from the beach. Minuses? Well, besides a pretty skimpy public safety net, you have to figure out how to be smart about saving and investing without the help of an HR department or a 401(k).And that's why the feds created the SEP IRA. And it's why we just launched our very own optimized-return, low-fee version of it.

Why is the SEP IRA the best way to save for retirement if you're freelance?

Well a traditional IRA is great — among other virtues, every dollar you contribute lowers your income tax. The problem is you can only contribute $5,500 to it annually. That's way less than a 401(k) — which maxes out at $18,000, plus any contributions your employer makes on your behalf.

The SEP IRA — it stands for Simplified Employee Pension Plan, by the way, not Self-Employed Pension Plan — has the same advantages as a traditional IRA, though the tax deductions are calculated a little differently (if you want to know more about how, click here.) But more importantly, a SEP also allows you to contribute up to 25% of your net income to a maximum of $54,000.

Wealthsimple uses technology and smart, friendly humans to help you grow and manage your money. Invest and save in a better, simpler way

Money Diaries


Spike Lee Tells Us Why He Never Feels Bad Asking for Money


Get the best stories from our magazine every month

Sign up for our email newsletter

  • News

    Introducing Roundup. Automatically Invest Your Spare Change.

    We've created a new way to turn spending your money into investing your money. Roundup lets you — you guessed it — round up your credit and debit card purchases, so your spare change works harder.

  • News

    We Published Our Own Print Magazine

    Yes! A real print magazine. To touch, smell, and use to both entertain yourself and become a bona fide financial genius. Why did we do it? We're so glad you asked.


    A new kind of financial company

    Invest, trade, save, spend, and even do your taxes in a better, simpler way.

    see-more cta
  • News

    We Studied Ourselves: Wealthsimple’s First Diversity Report

    We wanted to measure diversity and inclusivity so we anonymously asked Wealthsimple employees about it. The results weren’t what we hoped for, but that’s not why we did it.

  • News

    Wealthsimple: The Story of Who We Are

    A short, (interactive!) tour of how we work and why that matters.


A new kind of financial company

Invest, trade, save, spend, and even do your taxes in a better, simpler way.

GET STARTEDright arrow icon

Our best stories, once a month.

Sign up for our newsletter

The content on this site is produced by Wealthsimple Technologies Inc. and is for informational purposes only. The content is not intended to be investment advice or any other kind of professional advice. Before taking any action based on this content you should consult a professional. We do not endorse any third parties referenced on this site. When you invest, your money is at risk and it is possible that you may lose some or all of your investment. Past performance is not a guarantee of future results. Historical returns, hypothetical returns, expected returns and images included in this content are for illustrative purposes only. By using this website, you accept our (Terms of Use) and (Privacy Policy). Copyright 2020 Wealthsimple Technologies Inc.