An easy way to IRA

FAQs

• How does Fidelity Go^® work?

  With Fidelity Go^® you’ll start by telling us about yourself and your individual financial goals so that we can suggest an investment strategy for your account. We'll then manage your money in accordance with your goal, helping you track your progress along the way. Once your account is open, you can add money to it. Once your account balance reaches $10, we’ll start investing for you. If you told us you’d like to make a recurring transfer, we'll prompt you to add those. But don't worry if you’d rather put those off until later—you can set up or modify recurring monthly, bi-weekly, or weekly transfers at any time.

  Personal financial coaching:
  All customers have access to our online planning tools, and once your account reaches a balance of $25,000, you’ll have access to unlimited coaching sessions with our trained advisors. Whether you need help creating a budget, paying down debt, retirement planning, or investing for your future, you’ll have the comfort of knowing that 1-on-1 advice from Fidelity is just a coaching call away.

  Annual reviews:
  Life takes it turns—and we want to know all about them. Each year, we’ll check in with you to ask if anything major in your life has changed. If necessary, we’ll adjust your investment strategy to fit with your new situation. And remember, this is a relationship. So, as your needs change, let us know and we can help by making changes consistent with your new goal. You don’t need to wait until your annual review to contact us!

• How much does Fidelity Go^® cost?

  Fidelity Go^® offers tiered pricing based on your account balance. You'll pay no advisory fee for a balance under $25,000, or 0.35% per year for any balances of $25,000 and over. Either way, there are no trading fees, transaction fees, or rebalancing fees.

• 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.

• 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 answer 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.

• What's a hybrid robo advisor?

  A hybrid robo advisor typically refers to a robo advisor that includes access to investment adviser representatives, whether via telephone or in person. In the case of Fidelity Go^®, we combine our digital offering with access to 1-on-1 financial planning and coaching via telephone for clients that invest at least $25,000 in a Fidelity Go account. For more information on coaching see "How does coaching work with Fidelity Go^®?"

• How does coaching work with Fidelity Go^®?

  Once your Fidelity Go^® account reaches $25,000 you will have access to unlimited 30- minute coaching calls on specific topics with our trained advisors.

  On your 1-on-1 phone calls with a Fidelity advisor, you'll be able to discuss a financial plan for the future. During your conversations, an advisor will get to know what's important to you, work with you to prioritize your financial goals, and explain the importance of creating a financial plan to help make progress toward reaching them. You'll also get clear next steps so that you have tasks to complete and milestones to reach between each call.

• What is a Roth IRA?

  A Roth IRA is a tax-advantaged account where you make after-tax contributions and withdraw those contributions tax-free and penalty-free at any time and for any reason. Earnings on those contributions can be withdrawn tax-free and penalty-free once you are age 59½ or older, and at least five years have elapsed since the beginning of the tax year when you made your first contribution. Withdrawals can also be made without penalty if you are eligible for one of several exemptions, including disability, qualified first-time home purchase, or qualified education expenses, among others.

• What is a rollover IRA?

  A rollover IRA is a retirement account that allows you to roll over funds from a former employer-sponsored retirement plan, such as a 401(k), to an IRA. This rollover typically occurs when you change jobs or retire.

• 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 73. 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.

• What are the contribution limits for IRAs?

  In 2024 and 2025, the annual contribution limit for IRAs, including Roth and traditional IRAs, is $7,000. If you're age 50 or older, you can contribute an additional $1,000 annually.

• What is a SEP IRA and who is eligible for one?

  Simplified Employee Pension Plans (SEP IRAs) help self-employed individuals, small business owners, and employees of small businesses get access to a tax-deferred benefit when saving for retirement. Employer contributions to SEP IRAs can vary from 0% to 25% of compensation (a maximum of $69,000 for 2024 and $70,000 for 2025 for each account owner). These contributions must come from the net earnings of the business and are only tax-deductible on the business's tax filing.

  If you're an employee of a small business, contributions must be funded by your employer. If you're an employer contributing on behalf of your employees, you must contribute the same percentage for each eligible employee.

  While SEP IRA contributions and growth are tax-deferred, withdrawals are subject to taxation at the account owner's applicable income tax rate. Check with your tax advisor for your specific contribution limit.

• Can I convert an existing Fidelity brokerage or retirement account to a Fidelity Go^® account?

  If you have an eligible Fidelity brokerage or retirement account, you can convert it to Fidelity Go^®. When converting an account, you will retain your existing account number, 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 kinds of investments can I expect to find in my Fidelity Go^® account?

  Your account will hold a combination of Fidelity Flex^® mutual funds. These funds generally hold domestic stocks, foreign stocks, bonds, or short-term investments. Depending on your investment strategy and your account, we'll choose which funds we think will help you meet your goals.

• What are Fidelity Flex^® funds?

  Fidelity Flex^® funds are a lineup of Fidelity mutual funds that have zero expense ratios, and include proprietary active and passive funds. Flex funds are currently available only to certain fee-based accounts offered by Fidelity, like Fidelity Go^®. Unlike many other mutual funds, the Flex funds do not charge management fees or, with limited exceptions, fund expenses. Instead, a portion of the advisory fee you pay is allocated to access the Flex funds in which your account will be invested.