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Understanding Your Fidelity 2014 Form 5498 IRA Contribution Information Statement

If you had a Fidelity IRA in 2014, this guide may highlight tax reporting information related to your account.

Your Fidelity 2014 Form 5498 IRA contribution information

Your IRA summary statement has three parts. First is the tax Form 5498, which summarizes IRA contributions, recharacterizations, conversions, and reconversions. This is the information Fidelity is required to report to the IRS. Second is the IRA Portfolio section, which lists holdings and the fair market value. Third is the IRA Beneficiary Summary Statement, which provides a list of the beneficiaries we have on file for your IRA.

Click on the number for a detailed explanation of that section

An IRA can be a powerful way to save for retirement.

No matter what the market is doing, your IRA can still be a good way to save for tomorrow. For tax year 2014, you can contribute up to $5,500 to your IRA, and up to $6,500 if you were 50 or over as of December 31, 2014. Maximizing your contributions and starting early could help you save thousands more for your retirement.

Nonworking spouses can contribute, too.

Even if your spouse has little or no earned income, he or she may still be able to contribute to a spousal IRA—either a Traditional or a Roth IRA. To contribute, you must file a joint federal income tax return and have taxable compensation equal to or greater than the total amount contributed by both spouses. As with other IRAs, spousal IRAs offer benefits, including the higher contribution limits, deductible contributions to Traditional IRAs for qualified investors, the potential for tax-deferred growth, and federal tax-free withdrawals from Roth IRAs (provided the criteria are met).

Commit to regular investing.

Automatic investing directs money from your bank account into your IRA on a monthly or quarterly basis. You can easily add or update your automatic investing contribution instructions by calling 800-343-3589.

Important withholding information concerning retirement account distributions

Federal tax withholding

IRS regulations require us to withhold federal income tax at a rate of 10% from your total IRA distribution (excluding Roth IRA distributions). You may elect not to have federal withholding apply (provided you have supplied Fidelity with a U.S. address), or you may elect to increase the rate of withholding. Federal income tax will not be withheld from distributions from a Roth IRA unless you elect to have such tax withheld or are otherwise subject to withholding because you are a nonresident alien. Your election will remain in effect on checkwriting or periodic distributions taken under a systematic withdrawal plan from your IRA until revoked by you. You can change this election for future distributions at any time by sending Fidelity a written request or calling a retirement representative at 800-544-4774.

State tax withholding

If federal income tax is withheld from your distribution, state income taxes may also be withheld. Your state of residence will determine your state income tax withholding requirements, if any. Please refer to the list below. Your state of residence is determined by your legal address of record provided for your IRA. The information provided is general in nature and should not be considered legal or tax advice. Please contact your investment representative, tax advisor, or state taxing authority for assistance.

For residents of AR, IA, KS, MA, ME, OK, and VT: If federal income tax is withheld, state income tax of at least your state's minimum requirements must be withheld in addition to federal income tax withholding at the time of your distribution. If you elect out of federal income tax withholding, state income tax will not be withheld unless you indicate otherwise.

For residents of CA, NC, and OR: If federal income tax is withheld, state income tax of at least your state's minimum requirements must be withheld in addition to federal income tax withholding at the time of your distribution unless you elect not to have state income taxes withheld.

For residents of DC: If you take a distribution of your entire account balance and do not directly roll that amount over to another eligible retirement account, the District of Columbia requires that a minimum amount be withheld from the taxable portion of the distribution, whether or not federal income tax is withheld.

For residents of DE: State income tax of at least your state's minimum requirements must be withheld regardless of whether or not federal income tax is withheld unless you elect not to have state income taxes withheld.

For residents of MI: State income tax applies regardless of whether or not federal income tax withholding is applied to your distribution. Tax withholding is not required if you meet certain Michigan requirements governing pension and retirement benefits. Please reference the MI W-4P Form for additional information about calculating the amount to withhold from your distributions.

For residents of AK, FL, HI, MS, NH, NV, SD, TN, TX, WA, and WY: State income tax withholding is not available on your IRA distributions.

For residents of all other states and residents of DC taking periodic distributions: You are not subject to mandatory state income tax withholding; however, you may elect voluntary state income tax withholding in a percentage. If you elect to have state income taxes withheld and your state provides a minimum amount or percentage of withholding, you must elect a percentage that is not less than your state's minimum withholding requirements. If the percentage you elect for withholding is less than your state's minimum withholding requirements, your state's minimum amount or percentage will be withheld. Contact a Fidelity representative at 800-343-3589 for more information, or contact your state taxing authority for assistance.

Armed forces tax benefits

If you are serving in, or serving in support of, the U.S. Armed Forces in a designated combat zone or hazardous duty area, you may be eligible for an extension of your IRA contribution deadlines. Visit the IRS online at irs.gov or telephone them at 800-829-1040 for more information.

Take control of your old 401(k) — we are here to help

We know what it takes to help get an old 401(k) to work toward your goals. As the #1 IRA provider,1 we can help you put together a plan so your old 401(k) is working as hard as it can for you. Put our experience to work for you.

Guidance based on your needs

We’ll review your situation and help you create a plan for your retirement savings. Call 800-343-3589 to schedule a free portfolio review.

A wide range of choices

Expand your investing options with a Fidelity Rollover IRA. We offer access to a wide range of products and services to help meet your different investment needs including:

  • One-on-one guidance2
  • Investments ranging from over 5,000 mutual funds from Fidelity and other companies, stocks, bonds, FIDC-insured CDs3, ETFs, and annuities
    ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.
  • Great value in Fidelity IRAs with no account opening or annual maintenance fees* and online U.S. equity trades as low as $7.95 per trade all the time4
  • Asset protection through certain Fidelity IRAs that offer an interest bearing cash position, offering the benefit of FDIC insurance eligibility through a Program Bank5

* There is no cost to open and no annual fee for Fidelity's Traditional, Roth, SEP, and Rollover IRAs. A $50 account close-out fee may apply. Fund investments held in your account may be subject to management, low‐balance and short‐term trading fees, as described in the offering materials. For all securities, see the Fidelity commission schedule (PDF) for trading commission and transaction fee details.

Free help choosing investments

We can help you make choices that can get you on the path toward your retirement goals. Consolidating your assets into a Fidelity Rollover IRA may make it easier to track investment performance, diversify your total portfolio, and maintain your asset allocation strategy.

Whether you’re just getting started, already retired, or somewhere in between, Fidelity is here to help. Our rollover specialists can get you started today and help you turn your old 401(k) into one, easy-to-manage Fidelity Rollover IRA. Call 800-343- 3589 or visit any one of our local Investor Centers.

Planning beyond retirement

Fidelity can not only help you with your retirement goals, but also help you plan for the transition into retirement and the years you'll spend living in retirement. We can help with creating your retirement income plan and discuss factors and considerations for creating your strategy for income during retirement. Learn about "What to do when..." based on where you are with your retirement planning goals.

Ensure your heirs inherit your IRA by keeping your beneficiaries up to date

Have you checked your beneficiary designation for your IRA recently? The IRA Beneficiary Summary section, part of your Form 5498 IRA Contribution Information Statement, provides a detailed list of the beneficiaries on file for your Fidelity IRA as of December 31, 2014.

You should review your beneficiary designations based on any important change in your family or financial status, such as a birth, death, marriage, divorce, or inheritance.

IRA assets generally pass to beneficiaries outside the instructions of a will. Your designated beneficiaries will receive your IRA assets after your death, so it is important to keep your beneficiary information up to date, or your heirs may be subject to a less favorable tax-treatment.

You can update your beneficiary information (login required) online.

1. Based on two surveys: The PLANSPONSOR magazine 2014 Recordkeeping Survey (© Asset International, Inc.), based on defined-contribution plan assets administered and number of participants of recordkeepers, as of 12/31/2013; and Cerulli Associates' The Cerulli Edge® Retirement Edition, third quarter 2014, based on an industry survey of firms reporting total IRA assets administered for Q2 2014.
2. Portfolio review is an educational tool.
3. Fidelity offers a type of certificate of deposit ("CD") called a Brokerage CD. Brokerage CDs are issued by banks for brokerage firms' customers with the deposits received being obligations of the issuing bank. The CDs are usually issued in large denominations and the brokerage firm divides them into smaller denominations for re-sale to their customers. Any fixed income security including CDs sold or redeemed prior to maturity may be subject to a gain or loss. For the purposes of FDIC insurance, all depository assets of the account holder at the institution that issued the CD will generally be counted toward the applicable aggregate limit, for each applicable category of account. Additional information can be found on the FDIC website at www.FDIC.gov.
4. Fidelity's $7.95 trading-commission applies to online purchases of U.S. equities in a Fidelity brokerage account with a minimum opening balance of $2,500 for Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (of between $1.01 to $0.03 per $1,000 of principal) by Fidelity. Other conditions may apply. See the Brokerage Commission and Fee Schedule (PDF) for details.
5. The cash balance in the FDIC-insured Deposit Sweep is swept to an FDIC-insured interest-bearing account at a Program Bank. The deposit at the Program Bank is not covered by SIPC. The deposit is eligible for FDIC insurance subject to FDIC insurance coverage limits. All assets of the account holder at the depository institution will generally be counted toward the aggregate limit. The Program Bank will be assigned to your account during the account opening process. See the current list of eligible Program Banks. For more information, please see the FDIC Insured Deposit Sweep Program (PDF) disclosure document. For more information about FDIC Insurance coverage, please visit the FDIC website at www.FDIC.gov or call 877-ASK-FDIC. Customers are responsible for monitoring their total assets at the Program Bank.
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.

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Line 1

Reports 2014 contributions to Traditional IRAs or Rollover IRAs, including employee annual contributions (other than salary-deferral contributions) to SEP IRAs, through December 31, 2014. If you make any IRA contributions for 2014 between January 1 and April 15, 2015, Fidelity will mail an updated Form 5498 to you by June 2, 2015. The amount shown is the gross contribution, including any excess contribution(s), even if withdrawn.

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Line 2

Reports rollover contributions made in 2014 to a Traditional, Roth, SEP IRA, or SIMPLE IRA. This amount includes direct rollovers from employer-sponsored plans, as well as 60-day rollover contributions. Line 2 also reports qualified rollover contributions to Roth IRAs, which include military death gratuities, Service Member Group Life Insurance payments, qualified settlement income and airline payments. Line 2 does not show direct custodian-to-custodian transfers, which are not reported to the IRS.

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Line 3

Reports amounts converted to a Roth IRA from a Traditional, Rollover, SEP IRA, or SIMPLE IRA in 2014. Line 3 also reports amounts reconverted back to a Roth IRA following a recharacterization to a Traditional, Rollover, or SEP IRA. It does not include rollovers from one Roth IRA to another, which are reported on Line 2.

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Line 4

Reports contributions (and earnings) recharacterized from one type of IRA to another.

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Line 5

Reports the fair market value (FMV) of your IRA as of December 31, 2014.

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Line 7

Identifies the type of IRA reported.

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Line 8

Reports all SEP contributions made by an employer or self-employed individual in 2014 (but which may have been made for 2013 or 2014, but not including contributions made in 2015 for 2014).

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Line 9

Reports SIMPLE contributions made in 2014, including your elective deferral contributions and contributions made by your employer.

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Line 10

Reports contributions made in 2014 to a Roth IRA for 2014. If you make any IRA contributions for 2014 between January 1 and April 15, 2015, Fidelity will mail an updated Form 5498 to you by June 2, 2015. It does not show amounts converted to a Roth IRA, which are reported on Line 3.

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Line 11

If the box is checked, you must take a Required Minimum Distribution (RMD) in 2015. Fidelity refers to Required Minimum Distributions as Minimum Required Distributions (MRD). An MRD may be required even if the box is not checked. If you do not take the MRD for 2015, you are subject to a 50% excise tax on the amount not distributed. See Publication 590 (PDF) for details.

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Line 13a

Reports amount of any postponed contributions made in 2014 for a prior year.

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Line 13b

Reports the year for which the amount on line 13a is being made.

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Line 13c

The code on this line tells the IRS the reason you are allowed to make the postponed contribution. The allowed codes for participants who served in combat zones are EO13239 for Afghanistan and associated direct support areas, EO12744 for Arabian peninsula areas, and EO13119 for the Yugoslavia operations areas. For participants who are "affected taxpayers" of a federally designated disaster area, the code would be FD.

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Line 14a

This line will report any repayments of distributions made under the qualified reservist or federally designated disaster distribution rules.

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Line 14b

This code identifies what the reason is for the line 14a amount being repaid. The options for the codes are QR for qualified reservist and DD for disaster recovery.

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Line 12a

If you will be of minimum required distribution (MRD) age in 2015, this reports the date by which you must take your next MRD.

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Original Depositor

An original depositor is the original owner of IRA account assets that you have inherited and now hold in an Inherited IRA account. These Inherited IRA accounts are also known as Beneficiary Distribution Accounts (BDAs). Fidelity will send a 2014 Form 5498 to the address of record of the original depositor's (decedent's) account if he/she made an IRA contribution for 2014 and/or if there is a remaining balance in the decedent’s IRA on December 31, 2014.

Before investing, consider the investment objectives, risks, charges, and expenses of the fund or annuity and its investment options. Call or write to Fidelity or visit Fidelity.com for a free prospectus and, if available, summary prospectus containing this information. Please read the prospectus and consider this information carefully before investing. Product availability and features may vary by state. Please refer to the contract prospectus for more complete details regarding the living and death benefits if applicable.
The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws which may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Fidelity makes no warranties with regard to such information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.
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