SIMPLE IRA A simple, low-cost 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.


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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.



  • Employee contributions are tax deferred and employers can deduct contributions
  • Potential investment growth is tax-deferred
  • No account opening fees or minimums1
  • Easily manage employee and employer contributions online2

How a SIMPLE IRA works

  1. To start, open your plan by following the instructions below.
  2. Once your account's established, enroll your employees. We've provided step-by-step instructions below.
  3. After you and/or your employees are enrolled, contribute online.
  4. Finally, maintain your plan with SIMPLE Plan Manager

Open your plan and enroll employees

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

  • What are the eligibility requirements for opening a SIMPLE IRA plan? Which employers can establish a SIMPLE IRA plan?

    Generally, SIMPLE IRA plans can be established by any business with 100 or fewer employees who earned $5,000 or more in the preceding year, and which does not currently maintain any other retirement plan.

  • What mutual funds are eligible for investment in a SIMPLE IRA?

    You may buy or exchange any mutual funds available to IRAs at Fidelity in your SIMPLE IRA, as long as the minimum initial and subsequent investment limits are met. For SIMPLE IRA customers many funds waive all loads, fees and minimums.

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

    Individual eligibility varies based on the elections you chose when you adopted the plan. Employees should be notified no later than as soon as they become eligible. In addition, if your plan is continuing for the upcoming year, you are required to provide eligible employees a Summary Description and Participant Notice on an annual basis (by November 2nd). Fidelity will send the SIMPLE IRA authorized individual a Summary Description and Participant Notice when the plan is established and annually thereafter in September, as a reminder of the upcoming notification date.

    To open a new 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.

Ways to contribute


Plan Manager

Our Plan Manager tool allows employers to contribute 
and more.


Contribute nowLog In Required

External bank or payroll vendor

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

Contribution limits


Contribution limits 2026
SIMPLE employee deferral $17,000
SIMPLE employee age 50-59 and 64+ catch-up $4,000
SIMPLE employee age 60-63 catch-up $5,250
SIMPLE employee deferral (additional 10%)  $18,100
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 $5,300

Want to calculate your limit based on your personal circumstances? Use our fast and easy Small Business Retirement Plan Contribution Calculator.



Contribution details


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 must offer a 4% match or 3% non-elective contribution in order for their employees to be eligible for the extra 10% salary deferral contributions. They are not obligated to do so, but failure to do so will resign their employees to the limited deferrals. The 4% match and 3% non-elective options are not available for companies with less than 26 employees.)


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 $5,300 (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.


For more detailed information on contribution limits, see Changes to your SIMPLE Plan due to SECURE 2.0 (PDF).

Ways to move outside accounts to a Fidelity SIMPLE IRA

If you have retirement accounts elsewhere, you can still take advantage of Fidelity's SIMPLE IRA.

Have an existing SIMPLE IRA elsewhere? Transferring to Fidelity is fast and easy

Transfer all or part of your non-Fidelity SIMPLE IRA to Fidelity - many stocks, bonds, and mutual funds can be transferred without needing to be sold.2



Start a transfer

How to roll over an old workplace plan to a Fidelity SIMPLE IRA

If you have an old workplace retirement account, such as a 401(k), you have the option to roll it over into a SIMPLE IRA. Be sure to consult with a tax advisor before making a change to your retirement plan.  If you decide to roll over assets, here are the steps:

  1. Start by opening a Fidelity SIMPLE IRA
    We'll walk you through it, step by step. NOTE: You cannot process a rollover within two years of your first contribution to your SIMPLE IRA account.
  2. Initiate the rollover of your money by calling your workplace plan provider or using their website
    They may require forms, like a Letter of Acceptance (LOA) from Fidelity, or their own paperwork, signed by you or Fidelity. You can create an LOA onlineLog In Required.
  3. Deposit your money in your Fidelity SIMPLE IRA
    Your old workplace plan provider will give you a choice:

    •  Have your old provider send the money directly to us, or

    •  Deposit it yourself


    You have multiple options for sending the money to Fidelity (mobile check deposits not accepted at this time). If by check, make it payable to Fidelity Investments, FBO [name of plan participant]. Checks do not need to be endorsed and should include your Fidelity SIMPLE IRA account number.

    Please note: Your rollover will be deposited in cash. You will be responsible for investing your money as a next step.

Frequently asked questions

Get started with your activated SIMPLE IRA

Now that the plan has been established, the employer must:


  • Explore more
    • 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, so employers must provide the notification by November 2 prior to the plan year.

Remember to keep good 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.


In the event of an audit, you should retain the Salary Reduction Agreement (PDF) 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.

Be sure to notify eligible employees yearly

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.


By that deadline date, 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 (PDF), Participant Notice (PDF). These must be completed and distributed by November 2 to give your employees 60 days for their elections before January 1.

Correcting 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?

To remove former participants from the plan or see if minor errors can be easily fixed, authorized individuals may call a Fidelity Representative for help at 800-544-5373 (say "Small Business Retirement Plan" when prompted.)

In some cases, the error may result in an excess contribution. There is no formal IRS method to correct SIMPLE IRA excesses. You should consult your tax advisor for guidance before completing the SIMPLE IRA Return of Excess Form (PDF)Log In Required. 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.


Terminating your plan when necessary


If you are discontinuing your SIMPLE IRA plan, you can notify Fidelity by calling a Fidelity representative 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.

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.

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Have more questions?

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

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