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Tax-Advantaged Fidelity Solutions

If you’re looking for strategies to defer or minimize the potential impact of federal income tax on your investment returns, consider these Fidelity products and services.

Accounts with tax benefits

Opening an account is the first step. You may have a 401(k) or other retirement plan through your employer, but these accounts can increase your opportunities for tax-deferred or tax-free growth.

Retirement and IRAs
Tax-deferred and tax-free growth potential for retirement savings

529 College Savings Plans
Flexible, tax-deferred savings with tax-free withdrawals for qualified college expenses

Fidelity Personal Retirement Annuity®
Fidelity’s low-cost, deferred variable annuity for tax-deferred retirement savings

Investment options

For accounts without tax advantages, consider these investment choices that offer tax-exempt income or potentially lower exposure to capital gains tax.

Municipal bonds and funds

Municipal bonds
Federally tax-exempt interest; potentially state tax-exempt as well, for bonds held by residents of the issuing state

Municipal bond mutual funds
Similar tax exemptions as municipal bonds with the advantages of mutual fund investing

Municipal money market funds
Short-term, high-quality investments with similar potential tax advantages as municipal bond funds

Funds with lower turnover rates

Index Funds
Typically conduct less security purchases and sales, a factor which may help mitigate capital gains taxes

Mutual funds research
To find other funds with lower turnover, include turnover in your advanced search criteria (located in the Fund Management category of the Fund Evaluator).

Services that include help with tax strategies

Every Fidelity customer has access to free, one-on-one guidance1 and 24/7 access to experienced investment professionals who can help you consider your tax situation. We also offer premium services to those who qualify.

Managed Accounts
Professional money management for those who have certain minimum amounts of investable assets; services may include strategies that seek to improve after-tax returns or comprehensive tax planning.2

Next steps

Tax Calculators & Tools
Fidelity’s offering of tax calculators can help you with tax planning.

Estate Planning
Explore estate planning concepts, including estate and gift taxes, and how they may affect your investment choices.

Learn more

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information.  Read it carefully.
The tax information contained herein is general in nature and for informational purposes only. Fidelity does not provide legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
1. Although consultations are one-on-one, guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.
2. Fidelity® Personalized Portfolios apply tax-sensitive investment management techniques (including tax-loss harvesting) on a limited basis, at their discretion, primarily with respect to determining when assets in a client’s account should be bought or sold. As a discretionary investment management service, any assets contributed to an investor’s account that Fidelity® Personalized Portfolios do not elect to retain may be sold at any time after contribution. An investor may have a gain or loss when assets are sold.
3. Fidelity Charitable is the brand name for Fidelity® Charitable Gift Fund, an independent public charity with a donor-advised fund program. Various Fidelity companies provide services to Fidelity Charitable. The Fidelity Charitable logo is a service mark, and Fidelity Charitable and Fidelity are registered service marks of FMR LLC, used by Fidelity Charitable under license.
System availability and response times may be subject to market conditions.
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