The value of your investment will fluctuate over time, and you may gain or lose money. FXAIX is offered by more than half of the 401(k) plans on Fidelity's platform, according to the company, making it one of the most accessible Fidelity funds for retirement. Fidelity supports 128-bit browser encryption. The ability to choose between matching options means SIMPLE IRAs can work well for businesses that need to adapt to changing financial circumstances. As a business owner, you can choose to match employee contributions in one year, then opt to make a 2% non-elective contribution in the following year, depending on how much you want to commit to employee accounts. A retirement plan for those seeking a lower-cost alternative to a 401(k). You also have the option of reducing the percentage of the matching contribution to as low as 1% of annual compensation. SIMPLE IRAs offer employees the tax benefits of a 401(K) with the convenience of a personal IRA. For example, employer contributions to SIMPLE IRAs can be considered a tax-deductible business expense. There is no setup charge, nor is there an annual fee. 2. This includes the first RMD, which individuals may have delayed from 2019 until April 1, 2020. Contact Fidelity … The most secure digital platform to get legally binding, electronically signed … Fidelity Advisor SIMPLE IRA is designed for business owners who want to provide employees with retirement savings through payroll deduction. Fidelity offers three different IRAs to address a variety of retirement goals. Username For U.S. employees, your username (up to … To open a SIMPLE IRA plan for the current year, the … For small business owners; ... Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material … The change in the RMD age requirement from 70½ to 72 only applies to individuals who turn 70½ on or after January 1, 2020. Fidelity Advisor SIMPLE IRA Details. Catch-up contributions may also be matched dollar for dollar if the plan allows. This site is for persons in the U.S. only, 401(k) Participants & Employees of Corporations, 403(b) & 457(b) Participants & Employees of Non-Profits, All taxable businesses with 100 or fewer employees with $5,000 or more in compensation in the prior calendar year, Pretax salary deferrals with minimal administrative expenses, Earned at least $5,000 in compensation during any two preceding years (consecutive or not) and expects compensation of $5,000 or more in the current year, Lesser of 100% of compensation or $13,500 salary reduction contribution ($16,500 if age 50 or older), Dollar-for-dollar match on first 3% of annual compensation deferred by each eligible employee, Nonelective contribution of 2% on up to $290,000 of annual compensation for each eligible employee, Annual custodial fee deducted from employee accounts, Any time between January 1 and October 1 for current calendar year, For new employers established after October 1, as soon as administratively feasible, Minimal tax-filing burden, paperwork, and administrative expense, Employer contributions to eligible employee accounts are deductible business expenses, Accepts rollovers from other qualified account types. Recently enacted legislation made a number of changes to the rules regarding defined contribution, defined benefit and/or individual retirement plans and 529 plans. Account holders can roll SIMPLE IRA assets into another SIMPLE IRA. Employees choose to defer a portion of their salaries into their retirement account, and then employers have the option of matching a percentage of their employees' contributions, or contributing a fixed percentage of employees' salaries to their accounts. May Lose Value. … Usage of Fidelity Advisor SIMPLE IRA Plan Sponsor Site involves the electronic transmission of personal financial information. Before investing, consider the funds' investment objectives, risks, charges, and expenses. If the employer chooses the 2% non-elective contribution, the percentage cannot be changed or reduced. Account holders also can roll a SIMPLE IRA into a traditional IRA (tax-free) or Roth IRA (income tax due) after 2 years. Fidelity supports 128-bit browser encryption. Fidelity does not provide legal or tax advice. As always, before making any decisions about your retirement planning or withdrawals, you should consult with your personal tax advisor. It is a violation of law in some jurisdictions to falsely identify yourself in an email. Information herein may refer to or be based on certain rules in effect prior to this legislation and current rules may differ. During that period, employees also choose the amount of their salary they wish to contribute in the coming year. However, the percentage can only be reduced for 2 years within any given 5-year period. Have your client read it carefully. THE FIDELITY SIMPLE-IRA ADVANTAGE 1 Other fees and expenses, including those that apply to a continued investment in the fund, are described in the fund’s current prospectus. The electronic contribution service eliminates the need to write checks to your retirement plan and can reduce errors. 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