ACCOUNTS & TRADING
PREMIUM CONTENT & TOOLS
Fidelity Institutional Asset Management®
ACCOUNTS & TRADING
PREMIUM CONTENT & TOOLS
Important information concerning the Fidelity Advisor IRAs (Traditional, Roth, SEP/SARSEP, and SIMPLE)
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
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.
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.
The maximum compensation on which nonelective contributions to a SIMPLE IRA can be based is $285,000
for . The maximum compensation figure is subject to cost-of-living
adjustments in $5,000 increments in later years.
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 $285,000 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
The maximum annual elective deferral limit for a SARSEPs IRA for
is the lesser of 25% of compensation or $19,500. The $19,500 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 $19,500 limit is subject to
cost-of-living adjustments in increments of $5,000 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.
Eligible rollover distributions from
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
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.
Due to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, required minimum distributions (RMDs) are temporarily waived for IRAs for calendar year 2020. This includes the first RMD, which individuals may have delayed from 2019 until April 1, 2020.
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.
For additional information on the legislative provisions affecting your IRA, please
call your financial or tax advisor. You should review these changes carefully.
As always, you are encouraged to consult your financial or tax advisor with respect
to any tax questions, or to determine how these changes may affect your personal
* Subject to cost-of-living adjustments.