Retirement Information

Important information concerning the Fidelity Advisor IRAs (Traditional, Roth, SEP/SARSEP, and SIMPLE)

  • Annual Traditional and Roth IRA Contribution Limits, including Catch-up Contributions

    Traditional IRA and Roth IRA owners are generally permitted to make contributions up to an annual limit. Owners who are at least age 50 by December 31 of the tax year to which the contribution applies are generally permitted to make an additional "catch-up" contribution up to an annual limit. The maximum aggregate annual contribution limits for Traditional and Roth IRA contributions are detailed in table shown.

    Tax Year
    Annual Traditional and Roth IRA contribution limit $6,000
    Annual Traditional and Roth IRA catch-up1 contribution limit2 $1,000
    Maximum annual contribution limit (including catch-up)1 $7,000
  • SIMPLE IRA Elective Deferral and Catch-up Elective Deferral Contributions

    SIMPLE IRA plan participants are permitted to make an elective deferral contribution up to an annual limit. Plan participants who are at least age 50 by December 31 of the tax year to which the contribution applies are permitted to make an additional elective deferral catch-up contribution up to an annual limit. Elective deferral contributions and catch-up contributions may be matched by the employer up to 3% of compensation (subject to plan provisions). The annual SIMPLE IRA catch-up contribution limit is $3,000 for tax year . This amount is subject to increase for cost-of-living adjustments in later years. See table.

    Tax Year
    Annual SIMPLE IRA elective deferral limit $13,000*
    SIMPLE IRA catch-up1 elective deferral limit2 $3,000
    Maximum annual elective deferral limit (including catch-up)1 $16,000*

    The maximum compensation on which nonelective contributions to a SIMPLE IRA can be based is $280,000 for . The maximum compensation figure is subject to cost-of-living adjustments in $5,000 increments in later years.

  • Contribution limits for SEPs and SARSEPs

    The annual contribution limit to a SEP or SARSEPs is the lesser of 25% of compensation or $56,000 (per participant) for . This limit is subject to cost-of-living adjustments in $1,000 increments in later years. The maximum compensation on which contributions to SEPs and SARSEPs can be based is $270,000 in and is subject to cost-of-living adjustments in $5,000 increments in later years. Elective deferrals to SARSEPs are also subject to the limits more fully described below.

  • SARSEP Elective Deferral and Catch-Up Contributions

    The maximum annual elective deferral limit for a SARSEPs IRA for is the lesser of 25% of compensation or $18,500. The $18,500 limit applies to the total elective deferrals (including designated Roth contributions, if applicable) made to a SEP, a 401(k) plan, a 403(b) plan, and a SIMPLE IRA. The $18,500 limit is subject to cost-of-living adjustments in increments of $500 in later years. Additionally, SARSEPs IRA participants who reach age 50 by December 31 of the tax year to which the contribution relates are eligible to contribute an additional catch-up contribution. See table.

    Tax Year
    Annual SARSEPs IRA elective deferral limit $19,000*
    SARSEP IRA catch-up1 elective deferral limit2 $6,000
    Maximum annual elective deferral limit (including catch-up)1 $25,000*
  • Expansion of Rollover Rules

    Eligible rollover distributions from 401(a), 403(b), and 457 governmental plans may generally be rolled over to an IRA or any of such plans or arrangements that permit rollovers. After-tax contributions may not, however, be rolled over from an IRA to a 401(a), 403(b) or 457 governmental plan. As a result of the Pension Protection Act of 2006, after-tax amounts in 401(a) plans, including designated Roth contributions, may be rolled over to 403(b) plans and vice versa.

  • Required Minimum Distribution Rules

    Required Minimum Distributions (RMDs) are generally required for IRA owners who have attained a specific age. The beginning RMD age is 72 for individuals who reach the age of 70½ on or after January 1, 2020. For individuals who have reached age 70 ½ in 2019, the RMD remains at 70½. The regulations also require that the trustee, custodian, or issuer of an IRA must provide a statement to the IRA owner by January 31 of the calendar year regarding the RMD.

    The statement must also inform the IRA owner that the trustee, custodian, or issuer of the IRA will be reporting to the IRS that the IRA owner is required to receive an RMD for the calendar year. FIIOC will satisfy the IRS RMD reporting requirement by notifying all Fidelity Advisor IRA owners who are or will be at least age 72 by December 31, , that they are required to take an RMD from any IRA that they own, including IRAs held at other trustees, custodians, or IRA issuers. FIIOC will also offer to calculate the RMD if instructed to do so by the Fidelity Advisor IRA owner. This notification, via mail, will occur on or before January 31, .3

    In addition to the notification above, if Box 11 of Form 5498 is checked, you must take an RMD for . An RMD may be required even if the box is not checked. If you don't take the RMD in (or if it is your first RMD, by April 1, ), you will usually be subject to a 50% excise tax on the amount not distributed.

    You may request that Fidelity calculate and distribute the RMD amount for you.

    For more information, refer to the Frequently Asked Questions about RMDs on the IRS Website at www.irs.gov or contact your investment professional or tax advisor.

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