Implement a cost-effective retirement plan that is easy to establish and maintain

A retirement plan for those seeking a lower-cost alternative to a 401(k).

For Plan Sponsors

For Employees

Fidelity Advisor SIMPLE IRA Details

Target Market

  • For small business owners

Prospects

  • All taxable businesses with 100 or fewer employees with $5,000 or more in compensation in the prior calendar year1
  • Corporations
  • Sole proprietorships
  • Partnerships

Benefit

  • Pretax salary deferrals with minimal administrative expenses

Plan Size

  • 100 or fewer employees

Fund Offering

  • Fidelity Advisor Funds® in multiple share classes

Employee Eligibility

  • 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
  • Certain employees may be excluded

Maximum Contributions

  • Lesser of 100% of compensation or $14,000 salary reduction contribution ($17,000 if age 50 or older)2,3

Employer Contribution

  • Dollar-for-dollar match on first 3% of annual compensation deferred by each eligible employee4
  • OR

  • Nonelective contribution of 2% on up to $305,000 of annual compensation for each eligible employee3

Vesting

  • 100% immediately

Loan Option

  • No

Employer Costs

  • No setup or administration fee
  • Annual custodial fee deducted from employee accounts

Deadline for Plan Setup

  • Any time between January 1 and October 1 for current calendar year
  • For new employers established after October 1, as soon as administratively feasible

Advantages

  • Minimal tax-filing burden, paperwork, and administrative expense
  • Pretax salary deferrals
  • Employer contributions to eligible employee accounts are deductible business expenses
  • Accepts rollovers from other qualified account types
 
 

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