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Contributing to Your IRA

You know it’s important to save. Contributing to your IRA will help you make progress toward your retirement goals.

Once you’ve opened an IRA, the next step is to fund it. If you have earned income for the current taxable year, you are eligible to make contributions up to the current annual limit amount. The more you can contribute to your IRA, the more you can potentially benefit from tax-advantaged growth and the more progress you can make toward your retirement savings goals.

Contributing to an IRA has never been easier. Fidelity offers you four different ways to contribute to your existing IRA:

  1. Contribute to an IRA online.1 lock_green
    Set aside money anytime day or night—before you have a chance to spend it.
  2. Automate your IRA contributions. lock_green
    It’s an easy way to make sure you invest on a regular basis. Set up monthly, automated contributions to save more while keeping it off of your to-do list.
  3. Contribute using your mobile device. iPhone®, iPad®, and Android™ users can contribute using Mobile Check Deposit for Traditional and Roth IRAs.
  4. Mail a check to Fidelity.
    Print and complete an IRA deposit slip, and mail it along with your check to the Fidelity address on the form.

Make regular contributions to your IRA

By trying to contribute the maximum amount every year to your IRA, you’re giving more of your money more time for potential growth. For example, one $5,000 contribution made today could be worth over $53,000 by the time you retire.2

If contributing to the maximum isn’t possible, investing even smaller amounts today could still add up to sizable retirement savings tomorrow.

For savers 50 and older

Investors age 50 and over can contribute $6,000 to an IRA for 2012 and $6,500 for 2013. The extra $1,000, called a “catch-up” contribution, is a great way to boost savings when retirement is around the corner.

Over a span of 20 years, investors who make the maximum catch-up contribution could have almost $44,000 more in their IRAs than investors who didn’t take advantage of catch-up contributions.3

Next steps

Open a Fidelity IRA.
Opening an account is easy.

Choosing investments for your IRA 
Get help choosing from Fidelity’s wide range of investment options.

1. Cutoff time for making a prior-year IRA contribution will vary, and you may not be able to make an online or mobile prior-year contribution. Call 800-343-3548 for details.
2. This hypothetical example assumes the following over 35 years: (1) one annual $5,000 IRA contribution made on January 1 of the first year, (2) annual rate of return of 7%, and (3) no taxes on any earnings within the IRA. The ending values do not reflect taxes, fees, or inflation. If they did, amounts would be lower. Earnings and pre-tax (deductible) contributions from a Traditional IRA are subject to taxes when withdrawn. Earnings distributed from Roth IRAs are income tax-free provided certain requirements are met. IRA distributions before age 59½ may also be subject to a 10% penalty.
3. This hypothetical example is for illustrative purposes only and is not intended to represent the performance of any security in a Fidelity IRA. The example assumes: annual tax-deferred compounding in an IRA; that annual contributions are made each January 2 starting in 2010 for 20 years; an annual contribution limit of $5,000 for 2010 to 2029; a hypothetical 7% annual return; and the reinvestment of income dividends and capital gains distributions. Assumes additional “catch-up” annual limits of $1,000 for years 2010 to 2029. Investing in this manner does not ensure a profit or guarantee against loss. Final account balances are prior to any distributions, and taxes may be due upon distribution.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

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