Selecting Small Business Retirement Plans – SIMPLE IRA | Fidelity Investments

Jim owns a dental practice with 10 staff members. His business is registered as a C-corporation. As an experienced professional, Jim understands how important a retirement plan can be when it comes to attracting and retaining good employees. He really wants a plan that would allow employee contributions. He opts for a simple IRA plan. Simple IRAs are intended for businesses with 100 or fewer employees earning $5,000 or more in the preceding year. The plan is funded by both employee salary deferrals and employer contributions of up to 3%. And while contribution limits are lower than they would be in a 401(k) he’s pleased that he can offer this added savings opportunity to his employees. Jim’s business has been doing quite well lately, and he and his staff have been very busy. So he’s glad to learn that administration of a simple IRA is fairly easy, and there are no required tax filings, as well as low costs. To review a plan comparison chart, be sure to visit the small business retirement plans page on Or for more information, contact a Fidelity retirement representative at 1-800-544-5373.

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