Consider a simple, yet powerful, retirement product

Provides the potential for tax-advantaged growth and overall tax management.

Featured Resources

Fidelity Advisor Traditional IRA Details

Target Market

Clients who:

  • Maximize contributions to their employer-sponsored retirement plans and want to save more
  • Need a retirement plan for a nonworking spouse
  • Do not have a workplace retirement plan

Eligibility Requirements

  • No maximum age limit provided compensation requirements are met.
  • For tax year 2021, if a client is covered by a plan at work, in order to take the full deduction the client must have a modified adjusted gross income (AGI) of less than $66,000 (single or head of household) or $105,000 (married filing a joint return). Partial deductibility AGI limits are less than $76,000 (single) and $125,000 (joint).

Fund Offering

  • Fidelity Advisor funds in multiple share classes

Maximum Contributions

  • Lesser of $6,000 or 100% of compensation; $7,000 if age 50 or older.1 Maximum contribution is reduced by any amount contributed to a Roth IRA for the same year.
  • Spousal IRA for nonworking spouse: $6,000; $7,000 if spouse is age 50 or older1
  • Deductibility of contributions depends on whether owner and/or spouse is an active participant in an employer-sponsored retirement plan, his or her filing status, and AGI

Deadline

  • Established and funded prior to the tax-filing deadline (no extensions) for contributions to be applied to the previous tax year

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 unreimbursed medical expenses over 7.5% of AGI
    • certain health insurance premiums if unemployed
    • disability or death
    • substantially equal periodic payments2
  • Required minimum deductions (RMDs) beginning at age 72. The change in the RMD 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 RMDs.
  • Qualified charitable IRA distributions3

Product Advantages

  • Flexible distribution options for estate planning and tax management
  • Contributions may be deductible from current income
  • Contributory assets up to $1 million now may be protected from creditors4
  • Earnings grow tax deferred

Get Started with Your Clients

1
Meet with your client to discuss retirement goals and create an income plan
2
Share the IRA Enrollment Guide with your client
3
Complete the new account application or rollover form
 
 

There was an issue with your input

 
 
 

Please confirm