As we approach the new year, it`s important for employees to review and consider their retirement savings options. One of these options is the Fidelity Simple IRA, a tax-deferred retirement savings plan designed for small businesses.

To participate in the Fidelity Simple IRA plan, employees must complete a salary reduction agreement. This agreement allows employees to contribute a percentage of their salary to the plan on a pre-tax basis, reducing their taxable income and increasing their retirement savings.

For the year 2022, the maximum salary reduction contribution limit for a Simple IRA is $13,500 for individuals under the age of 50, with an additional catch-up contribution of $3,000 available for those over 50.

It`s important for employees to review their personal financial situation and determine the appropriate amount to contribute to their Simple IRA. Employers may also offer a matching contribution on behalf of their employees, which can further increase retirement savings.

Employees should also review the investment options available within the Fidelity Simple IRA plan, ensuring that their investments align with their long-term retirement goals. Fidelity offers a wide range of investment options, from mutual funds to individual stocks and bonds.

It`s never too early to start thinking about retirement savings. By completing a salary reduction agreement and contributing to a Fidelity Simple IRA, employees can take control of their financial future and work towards a secure retirement.