Frequently asked questions

• What is a rollover IRA?

  A rollover IRA is a retirement account that allows you to move money from your former employer-sponsored plan to an IRA while keeping your money's tax-deferred status.

• What is a Roth IRA ?

  A Roth IRA is tax-advantaged savings account where you make after-tax contributions and withdraw those contributions tax-free and penalty-free at any time and for any reason. You can withdraw earnings tax-free and penalty-free once the 5-year aging requirement is satisfied and are age 59½ or older, or meet one of several exemptions (disability, qualified first-time home purchase, or death among others).

• How is a Roth IRA different from a traditional IRA?

  With a Roth IRA, you contribute money that's already been taxed (that is, "after-tax" dollars). Any earnings in a Roth IRA have the potential to grow tax-free as long as they stay in the account. Withdrawals of earnings from Roth IRAs are federal income tax-free and penalty-free if a 5-year aging period has been met and the account owner is age 59½ or over, disabled, or deceased. Roth IRAs are not subject to required minimum distribution (RMD) rules during the lifetime of the original owner, so you can leave your assets in the Roth IRA where they have the potential to continue to grow.

  With a traditional IRA, contributions can be made on an after-tax basis, or a pre-tax (tax-deductible) basis if certain requirements are met. Any earnings in the traditional IRA are tax-deferred as long as they remain in the account. Withdrawals of pre-tax money are subject to ordinary income tax when withdrawn. Your first RMD from a traditional IRA is required no later than April 1 of the year following the year in which you turn age 72. If you wait until April 1, you will then be required to take your second distribution by the end of that year.

  For both types of IRAs, distributions before age 59½ may be subject to both ordinary income taxes and a 10% early withdrawal penalty. For a detailed comparison, view the traditional vs. Roth comparison table.

  Note that with a Roth IRA, you're able to withdraw contributions you've made at any time, for any reason, with no taxes or penalty.

• What is my traditional IRA contribution limit for this year?

  In 2022, you can contribute a maximum of $6,000 to your traditional IRA if you're under age 50, or $7,000 if you're age 50 or over.

• How much can I contribute to my Roth IRA?

  In 2021 and 2022, you can contribute a maximum of $6,000 to your Roth IRA if you’re under age 50, or $7,000 if you’re age 50 or over.

• Can I convert an existing Fidelity brokerage or retirement account to a Fidelity Go^® or Fidelity^® Personalized Planning & Advice account instead of opening a new one?

  If you have an eligible Fidelity brokerage or retirement account, you can convert it to either Fidelity Go^® or Fidelity^® Personalized Planning & Advice. When converting an account, the existing account number will remain the same, along with other features like beneficiary designations, automatic deposits, and automatic withdrawals, if applicable.

  If you choose to open an account, we'll display any Fidelity accounts that are eligible to be converted. Only certain accounts can be converted at this time.

• What's a robo advisor?

  A robo advisor is an affordable digital financial service that uses technology to help automate investing based on information investors provide about themselves and their financial situation. "Robo" refers to these services being almost completely digital, and that computers, smartphones, or tablets are used to access and interact with your accounts. "Advisor" speaks to the investment advisors that offer digital advice and account management services, often for a lower fee than traditional investment advisory services.

• What's a hybrid robo advisor?

  A hybrid robo advisor is a service that typically combines a professionally managed account (through the help of a robo advisory service) with access to financial guidance or planning. For many hybrid robo advisors, the guidance and planning services are available through phone or video calls with human financial advisors. By meeting over the phone and through computer or app-based video conferencing, these services can come at a lower cost than meeting in person with a traditional financial advisor.

• How do robo advisors work?

  Robo advisors use various pieces of information about an investor to suggest an investment strategy. In most cases, you'll first be asked some questions online or through an app about yourself and your current financial situation. A robo advisor then uses that information to suggest an investment strategy for your financial goals. Investment strategies can include a mix of different types of investments and many robo advisors include account rebalancing services to help your investments stay in line with your financial goals and preferences.

• How does coaching work?

  Your financial wellness is our priority. We want to help you navigate life's big decisions by giving you the flexibility to get advice when and how you need it. Our online coaching means 24/7 access to financial planning tools and curated articles relevant to your situation. Then, if you need to go deeper and want advice from our trained advisors, you can schedule a 30-minute coaching call on specific topics.

• How does investment management work?

  You'll start by telling us about yourself and your individual financial goals—then we'll suggest an investment strategy for your account. We'll then manage your money in accordance with that goal, helping you track your progress and providing coaching calls along the way.

• What happens after I enroll?

  We begin our relationship with the most important part: getting to know you. Your online profile helps us understand your goals—and we'll also gauge your current financial needs. From there, we'll propose an investment strategy, as well as recommend next steps to help you improve your financial health.