If your employer has adopted the Retirement Savings Plan (RSP) and offers it to you, you may participate.
immediately vested in all employee, employer, and matching contributions made to your account. This means you have a non-forfeitable right to your account, even if your employment ends.
You may contribute to your RSP account through convenient payroll deductions on a pretax basis and also on an after-tax basis through the Roth contribution option.
Pretax contributions: Federal taxes on contributions and earnings are deferred until you receive distributions. That means your investment could grow faster than if it were in a taxable account.
Roth contributions: Contributions are taxed as ordinary income. Earnings accrue on a tax-free basis. All withdrawals of Roth contributions are tax-free. Withdrawals of qualified Roth earnings, as defined by the IRS, are also tax-free.
You may contribute up to the annual IRS limits:
Under Age 50
Age 50 or Older
$18,000 plus up to an additional $6,000
If your employer contributes, the maximum combined contribution
is your total W2 compensation or $54,000 — whichever is less. This limit applies to all defined contribution plans in which you may participate.
Fidelity deducts a quarterly fee of $3.75 from each RSP participant’s account. This fee is used to help offset administrative expenses.