Fidelity Advisor Roth IRA

Do you have clients who may benefit from the potentially tax-free growth of their retirement assets? Discover more about the Fidelity Advisor Roth IRA, including details on eligibility, contributions, distributions, and more.

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Maximize the potential growth of retirement assets

Contributions and earnings accumulate tax deferred and may experience growth through compounding.

* A distribution of earnings from a Roth IRA is federal income tax free if it has met the five-year aging requirement and its owner is at least 59½, deceased, or disabled. Distributions up to $10,000 for a first-time home purchase may also be tax free provided the five-year aging requirement is met. If the IRA owner is under age 59½ at the time distributions are taken, income taxes and a 10% early withdrawal penalty may apply.

The hypothetical illustration compares Roth IRA and taxable account investing and after-tax amounts available with each. Assumptions are (1) an initial after-tax investment of $6,000 made annually at the beginning of each year for the specified periods indicated, (2) a 7% annual rate of return, (3) annual taxation of taxable account earnings at an effective federal tax rate of 25%, and (4) Roth IRA distributions that are tax free.

Local taxes, account fees, and expenses are not taken into account. If such taxes, fees, and expenses were deducted, performance would be lower. This hypothetical is not intended to predict or project the investment performance of any security.

Fidelity Advisor Roth IRA details

Target market

Clients who may want to:

  • Diversify tax treatment of retirement assets
  • Reduce or avoid MRDs and taxes at retirement
  • Leave tax-free income to beneficiaries
  • Supplement other retirement savings
  • Convert their Traditional, SEP, or SIMPLE IRA to a Roth1
  • Roll over 401(k) assets1
Eligibility requirements
  • No age limit; must have compensation
  • Learn more about eligibility requirements for the current tax year
Fund offering
  • Over 150 Fidelity Advisor Funds®
Maximum contributions
  • Maximum contribution is reduced by any amount contributed to a Traditional IRA for the same year
  • Contributions are not tax deductible
  • Learn more about maximum contributions for the current tax year
Deadline
  • Established and funded prior to the individual's tax filing deadline (no extensions) for contributions to be applied to previous tax year
Distributions
  • Distributions are tax and penalty free if taken after a five-year aging period AND:
    • after age 59½
    • for first-time home purchase ($10K lifetime limit)
    • in the event of disability or death
  • If the above requirements are not met, distributed earnings may be subject to income tax as well as a 10% early withdrawal penalty
  • No required minimum distributions
  • Qualified charitable IRA distributions
Product advantages
  • All distributions are tax free provided certain requirements have been met
  • Contributory assets up to $1 million may now be protected from creditors1
  • No required minimum distributions during the IRA owner's lifetime
  • Flexible distribution options for estate planning and tax management

Use our resources to get started with your clients

Kit

FA IRA Investor Enrollment

Kit

FA IRA Application and Forms

Kit

FA Roth IRA Conversion

Retirement income planning

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

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Considerations before converting to a Roth IRA

A client's age and investment time horizon, the value of assets being converted, and current and future tax brackets are among the factors a client needs to consider when deciding to convert assets to a Roth IRA.

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Want to know more?

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

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1. 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.

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