Investing involves risk, including risk of loss.
1. Most SEPs require employers to contribute to each employee's plan at the same percentage of their salary/wages. For this reason, SEPs are rarely chosen by those with greater than 5 employees.
2. Based on: The PLANSPONSOR magazine 2023 Recordkeeping Survey (© Asset International Inc.), based on defined contribution plan assets administered and number of participants of recordkeepers, as of 12/31/2022.
3. Investment-only account. The account is established by the Trustee of the plan. You can use this type of account for either a Defined Contribution or Defined Benefit Plan. For Defined Contribution plans, a separate account must be opened for each participant. Defined Benefit plans are generally held in one pooled account. Please consult your plan document to see if you qualify to open an account.
4. $70,000 reflects the annual additional limit for both employer and employee contributions, under the internal revenue code. If you are over the age of 50 and have a Self-employed 401(k) there are various catch-up contribution limit that apply to the employee contribution portion of the annual addition limit. See
Self-employed 401(k) for more information.
5. 401(k) deferral limit for those under age 50 for 2025 is $23,500. For those age 50 or older there are various catch-up contributions that apply based on your age. See
Self-employed 401(k) for more information.
6. Fidelity Advantage 401(k) is a Safe Harbor plan. This means the employer agrees to make matching contributions up to 4% of the annual gross compensation of all employees, which is based on a standard contribution formula.
7. These figures represent the 2025 annual employee deferral limit and the total contribution limit plus the catch-up limit for those ages 50+, which is $7,500 in 2025, subject to yearly change. The SECURE 2.0 Act increases the catch-up contribution limit for employees who turn age 60-63 during the plan year to $11, 250 in 2025. Employer contributions may be tax deductible.
8. Employers with 26-100 employees may elect a 4% match or 3% non-elective contribution. Employers may also make an additional non-elective contribution of up to 10% of compensation (not to exceed $5,000, indexed) to each eligible employee of the plan, in a uniform manner. For more information see
Changes To Your SIMPLE IRA Plan due to SECURE 2.0 (PDF).
9. The SECURE 2.0 Act allows employees to defer 110% of the 402(g) elective deferral and catch-up amounts provided the sponsoring company has 25 or fewer employees. Employers with 26-100 employees must offer a 4% match or 3% non-elective contribution for their employees to take advantage of the higher deferral limits. A different catch-up limit applies to those aged 60-63. See
Changes To Your SIMPLE IRA Plan due to SECURE 2.0 (PDF) for more information.
10. If you withdraw the money before age 59½, you are generally subject to a 10% early withdrawal penalty, subject to certain exceptions. For SIMPLE IRAs, if the withdrawal is made within the first two years of plan participation, the 10% penalty increases to 25%.
11.
No account fees or minimums to open Fidelity retail IRA accounts. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs), and commissions, interest charges, and other expenses for transactions, may still apply. See Fidelity.com/commissions for further details.
12.
$0.00 commission applies to online U.S. equity trades and exchange-traded funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at Fidelity.com/commissions. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.
Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
