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WealthRabbit Launches the First Digital Roth SEP IRA for Self-Employed Business Owners
New offering lets sole proprietors and small business owners elect Roth tax treatment on SEP IRA contributions, a provision made possible by the SECURE 2.0 Act
ROCK HILL, SC / ACCESS Newswire / August 5, 2026 / WealthRabbit, a digital retirement platform built for small businesses, self-employed professionals, and their accountants, today announced the launch of its Roth SEP IRA, the first digital Roth SEP IRA offering available to self-employed individuals and business owners. The new product lets WealthRabbit customers elect Roth tax treatment on SEP IRA contributions entirely online, with no paperwork and no change to WealthRabbit's existing SEP IRA pricing.
The Roth SEP IRA is made possible by the SECURE 2.0 Act, which allows for SEP IRA contributions to receive Roth tax treatment starting in 2023. Under a Roth SEP IRA, a business owner pays tax on contributions in the year they're made, then lets that money grow and come out completely tax-free in retirement. The contribution limit doesn't change. In 2026, savers can still contribute up to $72,000, or 25% of compensation, whichever is less, the same as a traditional SEP IRA.
"Self-employed professionals have always been able to save more in a SEP IRA than in almost any other retirement account. What they haven't had, until now, is a simple way to make that money tax-free too," said Jason Ackerman, CPA, CFP®, Co-Founder and CEO of WealthRabbit. "The SECURE 2.0 Act gave business owners the option to go Roth on their SEP contributions, but no platform had actually built it end to end. We built WealthRabbit so a self-employed professional could open a Roth SEP IRA, choose their contribution split, and fund their account in about ten minutes, without ever picking up the phone or mailing a form."
With the launch, WealthRabbit customers can:
Open a Roth SEP IRA, a traditional SEP IRA, or split contributions between both, and change that election for future contributions at any time
Contribute up to $72,000 in 2026, or 25% of compensation, with no income limits on eligibility
Access the same professionally managed Core and Crypto portfolios available across WealthRabbit's platform
Set up an account in about ten minutes, with no payroll integration required for sole proprietors
The Roth SEP IRA is priced the same as WealthRabbit's traditional SEP IRA, at $6 per month flat, with no per-employee fees.
"A lot of our customers are freelancers and single-owner businesses who assumed Roth-style tax treatment was only for W-2 employees or Roth IRA holders under the income limit," Ackerman added. "This closes that gap. It's one more place where the tax code caught up to how people actually run their businesses, and we wanted to be the first ones to make it usable."
The Roth SEP IRA is available now to new and existing WealthRabbit customers at wealthrabbit.com.
About WealthRabbit
WealthRabbit is a digital retirement platform built for small businesses, self-employed professionals, and the accountants who serve them. WealthRabbit offers SIMPLE IRA, SEP IRA, Roth SEP IRA, Traditional IRA, Roth IRA, and Backdoor Roth IRA solutions, with fully digital setup, automated contributions, payroll integration, and professionally managed portfolios. WealthRabbit is owned and operated by Prajana Ventures and is based in Rock Hill, South Carolina.
Risks and Important Information
Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. Roth conversions may generate taxable income, and the tax consequences of a Backdoor Roth IRA strategy depend on an individual's specific financial situation, including existing IRA balances and the application of the IRS pro-rata rule.
WealthRabbit does not provide tax or legal advice. Investors should consult with a qualified tax advisor, CPA, or financial professional before implementing a Roth conversion or Backdoor Roth IRA strategy. Eligibility requirements, contribution limits, income thresholds, and IRS regulations may change and can affect the suitability or outcome of this strategy.
Automation tools are designed to facilitate execution but do not eliminate tax risk, reporting obligations, or compliance requirements. Investors are responsible for reviewing account activity and ensuring the accuracy of tax filings, including IRS Form 8606 and other applicable forms.
Media Contact:
Shyam Nagarajan
[email protected]
SOURCE: WealthRabbit
View the original press release on ACCESS Newswire
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