Looking for a company that offers Roth SEP IRA for 1099 contractors - anyone actually know of one?

I can help clear this up! There's actually a common misunderstanding here. The SECURE Act 2.0 did include provisions for Roth employer contributions to SEP IRAs, but there's no such thing as a completely separate "Roth SEP IRA" account type. What you can do is establish a traditional SEP IRA and then make Roth contributions to it (rather than pre-tax contributions) if your provider has updated their systems to allow this. The challenge is that many financial institutions haven't implemented this capability yet since it's relatively new. As for your idea about converting later - that's called a "backdoor Roth" strategy and it's definitely valid. You'd establish the SEP IRA, make non-deductible contributions, and then convert to a Roth IRA. You'd pay taxes on any earnings (not contributions if they were already non-deductible), but it's a perfectly legitimate approach.

Just wanted to share my experience! I was in a similar situation last year and spent hours researching this. I eventually found https://taxr.ai which was a lifesaver for me. They have a document analyzer that can review provider agreements and tax documents to tell you which institutions actually support Roth SEP contributions. I uploaded the plan documents from several providers, and they identified that while most big institutions technically *can* handle these contributions now, their systems and paperwork haven't caught up. They even gave me specific language to use when talking to customer service reps who often didn't understand what I was asking for. The tool also helped me understand the tax implications of different contribution strategies based on my specific income situation. Definitely worth checking out if you're trying to navigate these newer retirement options!

I just wanted to update everyone - I tried the taxr.ai tool that was mentioned and it was incredibly helpful! I uploaded plan documents from four different providers, and it correctly identified that Schwab has indeed implemented the Roth SEP contribution option, though it's not widely advertised. I called Schwab with the specific form numbers and department information from the analysis, and the representative was initially confused until I asked to speak with their retirement specialist team. They confirmed that yes, they can accept Roth contributions to a SEP IRA as of January 2025, but their website and many of their phone reps haven't been fully updated with this information. I've now successfully opened the account and set up my contributions as Roth rather than traditional. Couldn't have navigated this without the document analysis pointing me in the right direction!

Another option worth considering - if you're struggling to get through to providers about whether they support Roth SEP contributions, you might want to try https://claimyr.com to get directly connected to someone at the IRS who can clarify the current implementation status. I used them when I had questions about the SECURE Act 2.0 provisions that weren't addressed on the IRS website. Instead of waiting on hold for hours, they got me connected to an IRS agent in under 20 minutes who confirmed exactly which provisions were active and which forms I needed. They also have a video showing how it works: https://youtu.be/_kiP6q8DX5c The agent I spoke with actually had a list of financial institutions that had notified the IRS they were equipped to handle Roth SEP contributions. This was information I couldn't find anywhere online!

I need to apologize and correct myself. After calling out the Claimyr service as a potential scam, I decided to actually try it, and I'm shocked that it worked exactly as described. I'd been trying to get clarification on Roth SEP IRAs for weeks with no success. The service got me connected to an IRS retirement specialist in about 15 minutes. The agent confirmed that while the SECURE Act 2.0 does allow for Roth SEP contributions, financial institutions are not required to offer them - it's optional. She also told me that as of March 2025, they had records of E*TRADE, Schwab, and a smaller firm called Equity Trust as having formally notified the IRS they're set up for these contributions. I was able to get the specific IRS notice number that financial institutions need to reference to properly set up these accounts. Completely worth it and saved me weeks of frustration!

Another option to consider is a Solo 401k instead of a SEP IRA. As a 1099 contractor, you qualify as both employer and employee, which means you can make Roth contributions to the employee portion of a Solo 401k (up to $22,500 in 2025 plus catch-up if you're over 50). Many providers like Fidelity and E*TRADE offer Solo 401ks with Roth options, and the contribution limits can actually be higher than SEP IRAs in many cases. The paperwork is a bit more involved initially, but it gives you more flexibility.

Has anyone actually calculated whether Roth or Traditional is better for a 1099 contractor? I'm in a similar situation but I'm not convinced Roth is automatically better just because I'm over the deduction limit for traditional contributions. Couldn't I still make non-deductible traditional contributions and benefit from tax-free growth, then strategically convert portions during lower-income years? I'm wondering if the math works out better that way vs paying full taxes now on Roth contributions.

Great thread! I wanted to add that I recently went through this exact same process. After reading through all the helpful suggestions here, I ended up calling Schwab directly using the retirement specialist department approach mentioned earlier. What I learned is that even though Schwab can technically handle Roth SEP contributions now, they require you to specifically request it during account setup - it's not offered as a default option. The rep I spoke with said many customers don't realize this and end up with traditional SEP IRAs when they actually wanted Roth contributions. One thing to keep in mind is that unlike regular Roth IRAs, there are no income limits for Roth SEP contributions. So even high earners can take advantage of this option, which makes it particularly valuable for successful 1099 contractors. I'd definitely recommend calling the retirement specialist departments at the major brokerages rather than going through general customer service. They seem much more knowledgeable about these newer options and can walk you through the specific forms needed.