Fidelity Advisor Rollover IRA

Do you have clients with eligible tax-deferred retirement assets who need a retirement plan? Explore the Fidelity Advisor Rollover IRA and its fund offerings, advantages, and much more.

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Keep retirement assets working for you

The Fidelity Advisor Rollover IRA allows eligible rollover money to remain invested on a tax-deferred basis without paying current income taxes or penalties.

Potential impact of taking an early cash distribution from a 401(k) plan versus transferring eligible retirement assets to a Rollover IRA

 

The chart illustrates the potential impact of taxes and penalties that a cash distribution from a 401(k) plan might trigger if taken before age 59½, assuming a 25% federal ordinary income tax rate.

Fidelity Advisor Rollover IRA details

Target market
  • Baby boomers with large 401(k) accounts
  • Pre-retirees and retirees who may want to pass assets on to beneficiaries
  • Job changers—including those offered severance or early retirement packages
Eligibility requirements
  • Assets must come from an eligible retirement plan
  • Direct rollover: distribution check payable to rollover custodian
  • Indirect rollover: distribution check payable to participant—must be rolled over within 60 days
Fund offering
  • Fidelity Advisor funds in multiple share classes
Maximum contributions
  • None: no limit on eligible rollover assets
Deadline
  • Indirect rollovers must be completed within 60 days of distribution from an eligible plan
Distributions
  • Deductible contributions and any earnings are taxable as ordinary income in the year distributed
  • Penalty-free distributions after age 59½
  • 10% IRS early withdrawal penalty if taken before age 59½; however, a distribution may be penalty-free if taken for:
    • qualified first-time home purchase ($10K lifetime limit)
    • qualified higher education expenses
    • certain medical expenses over 7.5% of AGI
    • certain health insurance premiums if unemployed
    • disability or death
    • substantially equal periodic payments1
  • Minimum Required Distributions (MRDs) beginning at age 72. The change in the MRD age requirement from 70½ to 72 only applies to individuals who turn 70½ on or after 1/1/20. Please speak with your tax advisor regarding the impact of the SECURE Act on future MRDs.
  • Qualified charitable IRA distributions2
Product advantages
  • Consolidates multiple retirement plan accounts to make them easier to manage
  • Preserves tax-deferred status of eligible retirement plan assets (assets are not taxed until withdrawn)
  • Qualified 401(k) assets rolled over to a Rollover IRA may now enjoy the same federal protection from creditors that 401(k) plan assets currently enjoy3
  • Flexible distribution options for estate planning and tax management

Use our resources to get started with your clients

Kit

FA IRA Application and Forms

Kit

FA IRA Investor Enrollment

Brochure

FA Rollover IRA Options

Form

FA IRA Transfer or Direct Rollover

Understanding Net Unrealized Appreciation (NUA)

NUA is the difference in value between the cost basis of company stock and its market value at the time it is distributed in kind from the plan as part of a lump-sum distribution.

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Evaluate your options before you act

Before initiating a direct rollover to an IRA, consider all of the available options, their features, and all applicable fees.

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Retirement income planning

Put our insights into practice to help your clients meet their retirement goals.

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Want to know more?

Let’s talk about Fidelity Advisor Rollover IRAs for your clients.

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Retirement

1. Substantially equal periodic payments must be made not less frequently than annually and for the life expectancy of the employee or the joint life expectancies of the employee and a designated beneficiary.

2. Qualified charitable distributions may be made from an IRA (other than an active SEP or SIMPLE IRA), and excluded from income, after the IRA owner has reached age 70½, if directly transferred to a qualifying charitable organization, up to a maximum of $100,000. Please consult with your tax or legal adviser for more information on these distributions.

3. Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Please consult with legal counsel to determine how this law applies to your particular situation.
Depending on your firm's policy, you can use the Fidelity Advisor IRA or invest in Fidelity Advisor Funds® through your platform.

The above information is educational in nature and should not be construed as legal or tax advice.

Before investing, have your client consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Have your client read it carefully.

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