SIMPLE IRA A low-complexity plan for small businesses with up to 100 employees

With our comprehensive digital experience, Fidelity's SIMPLE IRA makes it easy for small businesses to offer a retirement plan with tax advantages.


Get started


Compare all small business plans

Benefits of a Fidelity SIMPLE IRA


Team up for tax savings

Both employers and employees enjoy tax-deductible contributions, plus tax-deferred growth.


Adaptable to employer needs

Flexibility to change your employer 
contribution annually as needed.


Grow as your business grows

Easily add up to 100 employees 
to your plan.

Combine employer and employee contributions for tax-smart savings


Let Fidelity simplify retirement savings with our SIMPLE (Savings Incentive Match Plan for Employees) IRA.



  • Employers and employees can jointly make tax-deductible contributions up to $21,450 annually
  • Investment growth is tax-deferred
  • No account opening fees or minimums1
  • Easily manage employee and employer contributions online

How a SIMPLE IRA works


  1. To start, complete and mail your application to Fidelity.
  2. Once your account's established, enroll your employees in the plan, including any salary deferral elections.
  3. After you're enrolled, contribute to your account online.
  4. Finally, maintain your plan with SIMPLE Plan Manager


Get started

Fidelity has you covered

A wide range of investments: Invest your contributions in our broad selection of stocks, bonds, mutual funds, and ETFs.


View investment options

Not sure if a SIMPLE IRA is right for you?: Our easy online tool can help identify a small-business retirement plan that fits you.


Help me find my retirement plan match

Frequently asked questions

How to open your plan


Get started with your SIMPLE IRA in 2 steps:


Step 1: Keep these documents for your records


Print, read, and retain copies of the following:



Step 2: Mail these completed documents to Fidelity


Print, complete, and sign the following:



Mail the completed originals in Step 2 to:


Fidelity Investments

PO Box 770001

Cincinnati, OH 45277-0038

Next step: Receive confirmation and enroll employees


Once we've received and processed the completed documents in Step 2, you'll receive a letter via US Mail. With your new plan confirmed, you're ready to enroll employees.

Frequently asked questions

  • How do I get a copy of my Adoption Agreement, Summary Description, or a Plan Level Report?

    For copies of your Plan Adoption Agreement or additional Summary Descriptions, please call a retirement representative at 800-544-5373 and say "Small business retirement plans" when prompted. The Summary Description is mailed to plans annually in September. Plan Level Reports are sent on a monthly basis to every SIMPLE IRA plan. The report includes a total of all salary deferral and employer contributions made for the period, is broken out by participants, and includes a participant level breakout of contributions.

How to enroll employees


Once you've established your plan, it's time to enroll employees.


Note: If you intend to deliver plan-related materials to your employees via email, please consult the Department of Labor's guidance for the use of electronic delivery of required plan-related materials.



Step 1: Provide required documents to employees


Download, print, customize, and distribute the following to all eligible employees:





Step 2: Have every participating employee print and review the plan brochure

SIMPLE IRA Employee Enrollment Brochure (PDF).




Step 3: Have every participating employee open a SIMPLE IRA account


To open an account with Fidelity, employees should visit Fidelity.com/simpleiraapplication.


Note: Please make sure that the SIMPLE IRA plan for your company has been established before submitting the account application. Participants will need the tax identification number (TIN) for their employer.




Step 4: Have every participating employee complete a salary reduction form


Print and complete the Salary Reduction Agreement (PDF) and forward the completed agreement to your payroll vendor or payroll processor. The employer should keep a copy of the employee's elections on file for their records.

Frequently asked questions

  • When must my employees be notified of their eligibility to participate in the plan?

    Eligibility varies based on the election you chose when you adopted the plan. Employees should be notified no later than as soon as they become eligible. In addition, you are required to provide eligible employees a Summary Description and Participant Notice on an annual basis (by November 2nd). 1. The Fidelity SIMPLE IRA authorized individual receives a Summary Description and Participant Notice when the plan is established and annually thereafter in September.

    To open a SIMPLE IRA plan for the current year, the plan must be established and employees notified by October 1; please note that an exception applies for businesses established after October 1. See the Maintain your plan section for more information.

  • How is the salary deferral process managed and who gets the paperwork?

    Your employees complete the Salary Reduction Agreement Form and return it to you or your payroll office (it does not go to Fidelity). A sample salary reduction agreement form is available online and is included in the Fidelity SIMPLE IRA employee enrollment kit. You may use this form or create your own customized version.

How to make contributions


Once you have opened your SIMPLE IRA plan and employee accounts have been established, the next step is to set up electronic funding for the plan. You have two options:


Option 1: Electronic funding service through our Plan Manager site


Review the Plan Manager guide (PDF), and register for Plan ManagerLog In Required to make online contributions.

Option 2: Use your external bank or payroll vendor to fund your plan electronically


Print, review, and provide your bank or payroll vendor with a copy of the Important Information about Your Fidelity SIMPLE IRA Plan (PDF)

Contribution details


Contribution type Requirement
Employer The Employer must choose between a mandatory matching contribution of up to 3% of compensation, or a non-elective contribution of 2% of compensation for all eligible employees. (Employers with 26-100 employees may offer a 4% match or 3% non-elective contribution.)

Employers may make an additional non-elective contribution to each employee of the plan in a uniform manner, provided that the contribution may not exceed the lesser of up to 10% of compensation or $5,000 (indexed).
Participants Funded by employee salary deferrals. The amount an employee may defer depends on their compensation, age, and in some cases the amount their employer has chosen to contribute.


Contribution limits


Contribution limits 2025
SIMPLE employee deferral $16,500
SIMPLE employee age 50+ catch up n/a
SIMPLE employee age 50-59 and 64+ catch-up $3,500
SIMPLE employee age 60-63 catch-up $5,250
SIMPLE employee deferral (additional 10%)  $17,600
SIMPLE employee age 50+ catch-up (additional 10%) n/a
SIMPLE employee age 50-59 and 64+ catch-up (additional 10%) $3,850
SIMPLE additional non-elective contribution the lesser of up to 10% of compensation or $5,000


Maintaining your SIMPLE IRA plan


With a SIMPLE IRA, you'll have some ongoing administrative responsibilities if your plan is active. The list below doesn't necessarily cover all of your responsibilities. You may want to consult the IRS or your tax advisor for additional questions.

Employer responsibilities

  • Establish your plan

    a. Establish your plan and notify eligible employees by October 1 of the year you intend to begin your plan.
    See: Open Your Plan

    b. Complete the company profile form to provide us with information about your company.

    • Choose the authorized individual(s) on the company profile form. It's a good idea to name the business owner as the primary authorized individual for the plan. because that's the person who will have the ability to add and remove authorized individuals.
    • Set up your company bank for Plan ManagerLog In Required. Even if you don't intend to use Plan ManagerLog In Required, it's a good idea to set up a company bank link in the event there's an issue with your outside funding mechanism.

    c. Familiarize yourself with Changes To Your SIMPLE IRA Plan due to SECURE 2.0.

  • Notify eligible employees
    • Provide the Summary Description, Participant Notice, Salary Reduction Agreement and, for new participants, a SIMPLE Application (available online) to eligible employees. See: Enroll Employees
    • Provide the notification for the first plan year and for every subsequent plan year. Employees must be given 60 days to make their elections.
      • The annual 60-day election period allows employees to enter into or modify their salary reduction agreements. The election period starts when the employer satisfies the plan notification requirements.
      • For the first plan year, the election period can be any 60-day period which includes the plan effective date.
      • The election must start by the plan effective date.
      • Employers may notify employees earlier, but the election period cannot end before the effective date.
      • For subsequent plan years, the election period is the 60-day period immediately preceding January 1 of the calendar plan year. Employers must provide the notification by November 2 prior to the plan year.
  • Keep records

    It's important to keep your original adoption agreement and any subsequent adoption agreements you fill out for the life of your plan, and possibly for years after termination. You should retain the Salary Reduction Agreements your employees return to you, and records of any contributions made to the plan on their behalf, as well as other documents related to your plan.

  • Contribute to participant accounts
    • There are two options to fund the accounts in your SIMPLE IRA Plan: Plan Manger or by using an external bank or payroll vendor. See: Funding Your Plan
    • Company contributions can be made up to your business tax filing dead line, plus extensions. Salary deferral contributions need to be made as soon as possible, but no later than 30 days after the end of the month in which they were deferred. See the IRS rules for more information.
  • Notify employees eligible to participate annually
    • You must decide before November 2 of the current year whether or not you wish to continue the plan for the upcoming year, and if you want to make changes to what you offer.
    • Be aware that if your plan provides a matching contribution, you must match dollar for dollar up to 3% of compensation for at least three years out of a five year period.
    • By November 2 you need to notify your employees if there will or will not be a plan for the upcoming year. If the plan is continuing the employees must also be informed of what the terms are by distributing a new Summary Description and Participant notice. These must be completed and distributed by November 2 to give your employees 60 days for their elections before January 1.
  • Abide by the terms defined in the plan agreement
  • Correct errors of operation
    • Despite your best efforts, there may be errors of operation that arise in running your plan. Most errors occur around contributions. A good practice is to double check the following before submitting a contribution: Is it going to the right person? Is it marked for the correct year? Is it the right type of contribution (company vs. salary deferral)? Did you already process this contribution, and would this result in a duplicate? Some minor errors may be fixable within the plan. Please call a Retirement Representative to see if we can help 1-800-544-5373 (say "Small Business Retirement Plan" when prompted.) In some cases, the error may result in an excess contribution.
    • Excess contributions: There is no formal IRS method to correct SIMPLE IRA excesses. You should consult your tax advisor for guidance if you determine you have an excess that must be removed, prior to completing the SIMPLE IRA RETURN OF EXCESS FORM (PDF). Additional information may also be found in the IRS SIMPLE IRA FIX-IT GUIDE.

    NOTE: Fidelity cannot withdraw funds from a client's account without their permission. Both the plan's Authorized Individual and the account owner must sign off on a request for a return of excess.

  • Terminate your plan when appropriate
    • If you are discontinuing your SIMPLE IRA Plan. you should notify your employees prior to November 2 of the current year that there will not be a plan effective the following January 1.
    • Notify by calling one of our Retirement representatives at 800-544-5373. Please make sure all contributions have been made before notifying Fidelity of the termination. Access to make contributions will not be available once the plan is terminated.
    • In the future, should you want to restart your plan you must notify eligible employees by November 2 of the year prior to the start of your plan on the following January 1. You cannot start a plan mid-year after your initial year.

Fidelity's responsibilities

Frequently asked questions

  • My business is growing. Am I still eligible for a SIMPLE IRA plan?

    Generally speaking, you are eligible for a SIMPLE IRA as long as your business has fewer than 100 employees earning $5,000 or more in the preceding year. As you grow, other retirement plans may become more appropriate. Please contact a Fidelity retirement representative at 800-544-5373 and say "Small business retirement plans" when prompted for more information.

More resources for your small business

Start and grow your business


Explore what you need to know to become your own boss.

An HSA for your small business


See why a Fidelity HSA® makes sense for small businesses and their employees.

Benefits basics for self-employed workers


A guide to health coverage, life insurance, and retirement plans.

Have more questions?

Call 800-544-5373 and say "Small Business Retirement"

Chat