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- Select and manage your own portfolio of investments with our free planning tools2
- Choose from a broad range of investment options to suit your needs
- No account-opening fees or minimums3—invest with as little as $1
Help me manage my investments
- Investments managed for you based on your preferences and financial goals
- Ongoing monitoring and rebalancing by our investment professionals
- No account-opening minimum—just $10 to invest4
- $0 advisory fee for balances under $25K (0.35% for balances of $25K+)4
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How much can I contribute to my IRA?
You can contribute up to the lesser of 100% of your earned income or $6,500 for 2023. For 2024, you can contribute up to the lesser of 100% of your earned income or $7,000. Once you reach age 50, contribution limits on IRAs increase by another $1,000. This allows for a "catch-up" contribution for those nearing retirement.
If I qualify to contribute to both a traditional IRA and a Roth IRA, are there tax implications I should consider?
Having a mix of both pre-tax and Roth contributions can help create additional flexibility in retirement to respond to a great unknown—future tax rates. For people who expect income in retirement to be as high or higher than their current level, others who expect their tax rate in retirement to be higher than today, or younger people who expect steady income growth over their careers, Roth IRA contributions may be the better choice. But if you believe that your tax rates will be lower in retirement than they are now, you may want to prioritize pretax vehicles like the traditional IRA. Our IRA Contribution Calculator allows you to answer a few questions and find out which one might be right for you.
Should I own a Roth IRA?
Generally speaking, most investors should consider having a Roth IRA as part of their overall retirement plan because it offers federal tax-free growth potential and withdrawals, which have the potential to help minimize taxes and maximize retirement savings. Contributing to a Roth IRA involves income requirements.
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 monies are subject to ordinary income tax when withdrawn. RMDs are required from traditional IRAs no later than April 1 of the year following the year in which you turn age 73.6 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 tax form will I receive for my Roth IRA contributions?
If you contributed or rolled money to a Roth IRA, you will receive Form 5498 from Fidelity in January. Form 5498 summarizes your IRA contributions, rollovers, holdings, and fair market value. If you make a prior year contribution between January and the tax filing deadline, you will receive a revised 5498 in May. This form is informational only and does not need to be filed with your taxes. For help with this tax form, see the IRS Instructions for Form 5498 (PDF).
What tax form will I receive for my IRA withdrawals?
If you made withdrawals (of $10 or greater) from an IRA, you will receive Form 1099-R from Fidelity in January. For more details on Form 1099-R and reporting the withdrawals on your return, see the IRS Instructions for Form 1099-R (PDF).
Tax preparation offers
It's easier than ever to view your tax forms and upload them directly to your preferred tax preparation service. As an added bonus, special discounts apply for Fidelity clients.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
For a distribution to be considered qualified, the 5-year aging requirement has to be satisfied, and you must be age 59½ or older or meet one of several exemptions (disability, qualified first-time home purchase, or death among them).
Fidelity's Planning and Guidance center allows you to create and monitor multiple independent financial goals. While there is no fee to generate a plan, expenses charged by your investments and other fees associated with trading or transacting in your account would still apply. You are responsible for determining whether, and how, to implement any financial planning considerations presented, including asset allocation suggestions, and for paying applicable fees. Financial planning does not constitute an offer to sell, a solicitation of any offer to buy, or a recommendation of any security by Fidelity Investments or any third-party.
No account fees or minimums to open Fidelity retail IRA accounts. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs), and commissions, interest charges, and other expenses for transactions, may still apply. See Fidelity.com/commissions for further details.
The change in the RMDs age requirement from 72 to 73 applies only to individuals who turn 72 on or after January 1, 2023. After you reach age 73, the IRS generally requires you to withdraw an RMD annually from your tax-advantaged retirement accounts (excluding Roth IRAs, and Roth accounts in employer retirement plan accounts starting in 2024). Please speak with your tax advisor regarding the impact of this change on future RMDs.
Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.
The use of the TurboTax branded tax preparation software and web-based products is governed by Intuit's applicable license agreements. Intuit, the Intuit logo, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries and are used with permission. Intuit is not affiliated with Fidelity Brokerage Services (FBS) or their affiliates. Intuit is solely responsible for the information, content and software products provided by Intuit. Fidelity cannot guarantee that the information and content supplied is accurate, complete, or timely, or that the software products provided produce accurate and/or complete results. Fidelity does not make any warranties with regard to the information, content or software products or the results obtained by their use. Fidelity disclaims any liability arising out of your use (or the results obtained from, interpretations made as a result of, or any tax position taken in reliance on information provided pursuant to, your use) of these Intuit software products or the information or content furnished by Intuit.
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