Traditional IRA

A traditional IRA can be a great way to save for retirement since potential earnings grow tax deferred, and your contributions may be tax deductible.1

With Fidelity, you have a broad range of investment options, including options to have us manage your money for you. You'll get exceptional service as well as planning and guidance support.

Questions?

800-343-3548

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Step 1: Confirm this IRA is right for you

Tax benefits

If you're within the IRS income limits, you may be able to deduct all or part of your contributions from your federal taxes.1
Access to your money

You can take penalty-free withdrawals for certain expenses, such as a first home purchase, birth, adoption, or college expenses.2
Flexibility

As long as you are still working, you never have to stop contributing to a traditional IRA, and you can contribute to an IRA in addition to your 401(k).1

Why you may want to consider other options

You may want to compare the benefits of a traditional IRA and a Roth IRA, since potential earnings of a Roth grow tax-free and might allow you to save more. You can use our IRA Contribution Calculator to find out how much you may be able to contribute. 


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Step 2: Decide if you want to manage the investments in your IRA, or have us do it for you

  Fidelity traditional IRA Fidelity Go® traditional IRA
Investment management
  • You are responsible for choosing and managing your investments
  • We choose and manage your investments using your goals and risk tolerance in this digital account
Planning & guidance
  • Access to robust planning tools, and support from a Fidelity representative as needed3
  • Access to digital planning tools and unlimited 1-on-1 coaching calls with a dedicated team of Fidelity advisors once your account balance reaches $25,0003
Minimums
  • No minimum to open an account4
  • No minimum to open an account5
Fees
  • No account4 or advisory fees with this type of retail account
  • Depending on which investments you choose, there may be underlying fees
 Advisory fee5
  • $0 for under $25,000 and 0.35%/yr for $25,000 and above
  • Invests in Fidelity mutual funds that do not charge management fees or, with limited exceptions, fund expenses
Support
  • Thought leadership, research, 24/7 customer service
  • Thought leadership, research, 24/7 customer service
 



Looking for a more hands-on managed approach? You might want to consider Fidelity® Wealth Services for your planning and investment management needs. Minimum investment is $50,000 for access to a team of advisors or $250,000 for a dedicated advisor. Learn more

Don't forget these important steps

Once you get your account set up, what's next?

For a Fidelity traditional IRA: Make your first contribution. Once your money is in your IRA, you should get it invested. This is a very important step—investing is how your money has the potential to grow over time.

For a Fidelity Go® traditional IRA Make your first contribution. You don't need to choose or manage your investments—we do that for you based on the information you gave us.


Once your Fidelity Go® traditional IRA reaches $25,000 consider setting up a coaching appointment to review your full financial picture. That's why we're here!

FAQs

  • 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 pretax 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.
  • Are there age limits to contribute to an IRA?

    The SECURE Act of 2019 removed the age limit at which an individual can contribute to a traditional IRA. Prior to 1/1/2020, an individual could not contribute after age 70½. 

    The Act now allows anyone that is working and/or has earned income to contribute to a Traditional IRA regardless of age.

  • How much can I contribute to my IRA?
    You can contribute up to the lesser of 100% of your earned income or $6,000 for 2022. For 2023, you can contribute up to the lesser of 100% of your earned income or $6,500. 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.
  • How can the IRA Contribution Calculator help me?
    Answer a few questions in the IRA Contribution Calculator to find out whether a Roth or traditional IRA might be right for you, based on how much you're eligible to contribute and how much you might be able to deduct on your taxes.
  • How much money do I need to open a Fidelity IRA?
    There is no minimum dollar amount required to open a Fidelity IRA. Some mutual funds may have minimums required to purchase; review each fund’s prospectus for details.
  • Can I withdraw money from my IRA?

    Under certain conditions, you can withdraw money from your IRA without penalty. The rules vary depending on the type of IRA you have. Generally, for a Traditional IRA, distributions prior to age 59½ are subject to a 10% penalty in addition to federal and state taxes unless an exception applies.2 Starting at age 59½, you can begin taking money out of your IRA without penalty, but you will still be responsible for taxes that might be due. Per the SECURE Act of 2019, as of 1/1/2020, upon birth or adoption of a child, an IRA owner may withdraw up to $5,000 penalty-free from any type of defined contribution plan or a Traditional IRA2 Such distributions may also be repaid.

    Starting at age 736, required minimum distributions (RMDs) begin—you can calculate how much you will be required to take using this RMD Calculator. You can also log in to get estimated RMDs for your Fidelity IRAs (Traditional IRAs, SEP IRAs, SIMPLE IRAs, Rollover IRAs, and all small-business retirement plans). Our system also keeps track of all withdrawals and allows you to set up automated distributions. Learn more about planning your retirement distributions.

    For a Roth IRA, you can take a penalty-free, federal tax-free distribution of contributions at any time. Provided you have met the five-year aging requirement, and one of the following conditions, you may also take a tax-free and penalty-free distribution of earnings: 

    • Over age 59½
    • Death or disability
    • First-time home purchase
    Note: There are no RMDs for Roth IRAs during the lifetime of the original owner. Please review Withdrawing From Your IRA for more information.
  • Can I transfer my IRA from another institution?
    Yes, visit IRA Transfer for a quick overview of the online process.
  • Can I roll over my old 401(k) from a previous employer to my Roth or Traditional IRA?
    Generally, yes. Contact our rollover specialists, and they'll guide you through the entire process—from beginning to end. Call 800-343-3548 to get started.
  • Where can I view my Tax Forms for my retirement accounts?
    You can access your available tax forms and find out when to expect additional forms by clicking here: View Tax Forms

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Helpful resources

7 things you may not know about IRAs

Traditional or Roth IRA, or both?

Tax rates can help you choose between IRAs

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