Retirement information

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

The maximum compensation on which nonelective contributions to a SIMPLE IRA can be based is $360,000 for 2026. The maximum compensation figure is subject to cost-of-living adjustments in $6,900 increments in later years.

The basic SIMPLE IRA employee contribution limit is $17,000. Those age 50 to 59 or age 64 and older can save an additional $4,000 as a catch-up contribution. Those age 60 to 63 can save $5,250 as a "super" catch-up contribution. Under the Secure Act 2.0, employees of companies with 25 or fewer employees may now contribute more than the basic limits. For these employees, the contribution limit is $18,100. The catch-up limit is $3,850 for those age 50 to 59 or age 64 and older, but remains $5,250 for those age 60 to 63.

But that's only half of the SIMPLE IRA contribution limit equation. SIMPLE IRAs also have a separate contribution limit for employers. The employer can choose to do either a matching contribution or a non-elective contribution. Thisis particularly important to keep in mind if you've opened a SIMPLE IRA as a self-employed person or as an owner-employee of a small business, as you can contribute up to the maximum for each type of contribution.​

Employer contributions to SIMPLE IRAs generally follow one of two formulas. Employers can either:

• Contribute a dollar for each dollar you contribute, up to a maximum percentage of your compensation. For all employers, the match is up to 3%. However, under the Secure Act 2.0, employers with 26 to 100 employees may allow their employees to make higher contributions, provided the employer chooses to match up to 4% of employee compensation. Employers can also choose to reduce their match rate to less than 3% (provided it's at least 1%) for up to 2 out of every 5 years.
• Contribute a defined percentage of your compensation (up to a maximum salary of $360,000 in 2026), no matter what you contribute. For all employers, the non-elective contribution is 2% of employee compensation. Again, employees of companies with 26 to 100 employees may make higher contributions, provided the employer chooses to make a 3% non-elective contribution. It's important to note that whatever percentage an employer elects, including for themselves as the owner, applies to all eligible employees.

Additionally, the Secure Act 2.0 now allows employers to make an additional non-elective contribution to each eligible employee in a uniform manner, up to 10% of compensation or a max of $5,000.

The SEP IRA contribution limit for 2025 is 25% of eligible employee compensation, up to $72,000. The maximum compensation that can be considered for contributions in 2026 is $360,000. It's important to note that employees typically cannot contribute to SEP IRAs. Instead, employers decide how much to contribute and make all contributions on behalf of their employees.

The maximum annual elective deferral limit for a SARSEPs IRA for 2026 is the lesser of 25% of compensation or $24,500. The $24,500 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 $24,500 limit is subject to cost-of-living adjustments in increments of $6,900 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 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 Distributions (RMDs) are generally required for IRA owners who have attained a specific age. The beginning RMD age is 73 for individuals who reach the age of 73 on or after January 1, 2026. 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 73 by December 31, 2026, 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, 2026.

In addition to the notification above, if Box 11 of Form 5498 is checked, you must take an RMD for 2026. An RMD may be required even if the box is not checked. If you don't take the RMD in 2026 (or if it is your first RMD, by April 1, 2027), you will usually be subject to a 25% 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.