|
|
|
|
| Maximum
Contribution Limits |
| The maximum amount of an annual IRA
contribution for a specified tax year and whether or not your contribution is tax deductible varies
depending on a number of factors related to eligibility rules. |
| Prior to January 1, 2002, the maximum
allowable contribution to an IRA is the lesser of $2,000 or 100% of eligible compensation per tax
year. |
| For the tax years beginning after
January 1, 2002, the new IRA contribution limit is increased to the lesser of 100% of eligible
compensation, or as follows: |
| Year |
Annual Contribution
Limit |
| 2002-2004 |
$3,000 |
| 2005-2007 |
$4,000 |
| 2008* |
$5,000 |
| *The dollar limit after 2008 will be
indexed for inflation in $500 increments. |
| Individuals who are 50 or older (by
12/31 of the calendar year for which the contribution is made) will be allowed to make catch-up
contributions to IRAs, as follows: |
| Year |
Annual Catch-up
Limit |
| 2002-2005 |
$500 |
2006
and thereafter |
$1,000 |
If you currently do
not have a date of birth on file with Fidelity, it is assumed
that your IRA contribution includes the applicable catch-up
contribution amount.
You can update your date of
birth online by selecting Accounts & Trade >> Update Accounts/Features >> Address and Telephone Information. |
Be sure to read Traditional IRA Notes, Roth IRA Notes, and
Rollover IRA Notes before placing an order that involves a retirement account.
|
| Note: When in doubt about an
order in an IRA, consult your tax advisor before placing the order. |
|
Top |
|
|
Traditional IRA Notes |
| Annual contributions may be
tax-deductible based on income limits and participation by you and/or your spouse in an
employer-sponsored retirement plan (e.g., 401(k), 403(b), 457). |
| Annual contributions may be made
after age 18 (to the Fidelity IRA) and up to (but not including) the year in which you turn age 70
1/2. |
| You may make an annual contribution
to a Traditional IRA even if you and/or your spouse participate in an employer-sponsored retirement plan
(e.g., a 401(k), 403(b), 457), however your contribution may not be deductible. |
| See Maximum
Contribution Limits. |
| Note: When in doubt about an
order in an IRA, consult your tax advisor before placing the order. |
|
Top |
|
| Roth IRA
Notes |
| You and/or your spouse may make an
annual contribution to a Roth IRA even if you and/or your spouse actively participate in an
employer-sponsored retirement plan provided adjusted gross income (AGI) requirements are met. For
information on AGI requirements, under the Retirement & Guidance tab, select Retirement Investing
Center >> I'm Getting Started >> Select/Open an Account. From here, scroll down to the
comparison of features for Roth and Traditional IRAs. |
| Annual contributions are not tax
deductible and can be made in any year you have compensation equaling the contribution amount after age
18 (to the Fidelity IRA). See Maximum Contribution Limits. |
| Note: When in doubt about an
order in an IRA, consult your tax advisor before placing the order. |
|
Top |
|
|
Rollover IRA Notes |
| By making this IRA contribution to a
Rollover IRA you may be commingling qualified plan assets [e.g. 401(k)], 403(b), and/or governmental
457(b) plan assets within your Rollover IRA with annual IRA contributions. |
| Beginning in 2002, the Economic
Growth Tax Relief Reconciliation Act allows for the consolidation of various types of retirement account
balances. However, if you want the option of rolling eligible assets from your IRA into another
employer-sponsored retirement plan in the future, you may want to consider keeping separate IRA accounts
for each retirement plan type that you are rolling over until the IRS issues further regulations on
portability of retirement plan assets. Therefore, you may want to consider making your annual IRA
contribution to a separate IRA. Consult your tax advisor. |
| Please note that you cannot make a
60-day direct rollover contribution online. If you are trying to do so, please contact a Fidelity
representative at 800-544-6666. |
|
Top |
|
|
