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Mutual Funds and Mutual Fund Investing - Fidelity Investments

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Small Business Overview

SIMPLE IRA

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.

Tax advantages	Employers: Employer contributions are deductible as business expenses. Participants: Tax-deferred growth potential Pretax contributions for participants
Eligibility	Employers: Must have 100 or fewer employees who earned at least $5,000 in the preceding year Cannot maintain any other employer-sponsored retirement plan Participants: Must have earned at least $5,000 from the employer in any two preceding years Must be expected to earn at least $5,000 in the current year¹
Contributions	Funded by employer contributions and elective employee salary deferrals Plan Sponsors: Mandatory 3% matching contribution or 2% non-elective contribution Participants: Up to 100% of compensation, with a maximum of $12,500 for 2017 and 2018 ($15,500 if age 50 or older)
Establishment deadline	For current tax year: Set up and notify employees by October 1.²
Administrative responsibilities	Certain annual employee notifications must be made. No plan tax filings with the IRS are required.
Withdrawals	Required minimum distributions starting at age 70½ 10% early withdrawal penalty (25% for first two years of plan participation) if under age 59½, subject to certain exceptions
Investment options	Include 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.
Support and guidance	Research and tools to help you create a long-term plan and choose investments
Fees	No initial setup fees or annual maintenance fee

Request Our Guide to Small-Business Retirement Plans.

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To buy or learn more

Investing involves risk, including risk of loss.

1. While employers cannot make these eligibility requirements more restrictive, they can generally liberalize them to include more employees.

2. For employers who want to establish a SIMPLE IRA plan for the current tax year, you must set up the plan and notify your employees by October 1 of the current tax year. (An exception applies for businesses which are established after October 1. Please refer to the Fidelity SIMPLE IRA plan establishment kit for more information.)

The initial customer ratings and reviews for this product (those dated before 3/18/2013) were provided to Fidelity through an email solicitation for feedback on the product. All ratings and reviews are provided to Fidelity on a voluntarily basis and are screened in accordance with the guidelines set forth in our . For additional information on which ratings and reviews may be posted, please refer to our Customer Ratings and Review Terms of Use. Featured Reviews have been selected based on subjective criteria and reviewed by Fidelity Investments. The average rating is determined by calculating the mathematical average of all ratings that are approved for posting per the Customer Ratings and Reviews Terms of use and does not include any ratings that did not meet the guidelines and were therefore not posted. Ratings and reviews are added continuously to the website (after a delay for screening against guidelines) and average ratings are updated dynamically as reviews are added or removed.

The ratings and experience of customers may not be representative of the experiences of all customers or investors and is not indicative of future success. The accuracy of information included in the customer ratings and reviews cannot be guaranteed by Fidelity Investments. Customers who post ratings may be responsible for disclosing whether they have a financial interest or conflict in submitting a rating and review.

Please contact a Fidelity representative if you have additional questions or concerns about the ratings and reviews posted here.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

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