Fidelity's Savings Investment Match Plan for Employees (SIMPLE IRA) makes it easier for self-employed individuals and small businesses with 100 or fewer employees to offer tax-advantaged retirement plans.

With Fidelity, you have no account fees and no minimums to open an account.1 You'll get exceptional service and guidance from our team.

Key things to know

Who is eligible

Employers must have 100 or fewer employees and cannot maintain any other employer-sponsored retirement plan. Employees must have earned at least $5,000 from the employer in any 2 preceding years and expected to earn at least $5,000 in the current year.

Tax benefits

For participants: Tax-deferred growth potential and pretax contributions. For employers: Contributions are deductible as a business expense.

Who contributes

Funded by employee deferrals and employer matching contributions.



  • Mandatory match or non-elective contribution. Mandatory 3% matching contribution or 2% non-elective contribution.


  • Up to a maximum of $13,500 for 2020 ($16,500 if age 50 or older) and $13,500 for 2021 ($16,500 if age 50 or older)

10% early withdrawal penalty (25% for first 2 years of plan participation) if under age 59½, subject to certain exceptions. Required minimum distributions starting at age 72.2

Investment options

A wide range of mutual funds, stocks, bonds, ETFs, and FDIC-insured CDs

Only certain fund families have mutual funds that are eligible investments for SIMPLE IRAs with no minimum initial investment requirement.


No account fees and no minimum to open an account1 $0 commission for online US stock and ETFs.1


Certain annual employee notifications must be made. No plan tax filings with the IRS are required.


For current tax year: Set up and notify employees by October 1. Deferrals and Matching must be contributed within 30 days after the end of the month in which amounts would have otherwise been payable to the employee.

Matching contributions are due no later than the due date for filing your business's income tax return including extension.

How to make

Employers can contribute online through Fidelity PlanManager.

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