Maximize the potential growth of retirement assets

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

Hypothetical growth of systematic $6,000 annual investments into a Roth IRA versus a taxable account

$887,481$406,059$88,702$600,801$311,996$80,362Taxable account (after taxes)Roth IRA (tax free)*10 YEARS25 YEARS35 YEARS

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Fidelity Advisor Roth IRA Details

Target Market

Clients who may want to:

  • Diversify tax treatment of retirement assets
  • Reduce or avoid RMDs 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
  • Maximum modified adjusted gross income for annual contributions:
    • For single filers: In 2021: Up to $125,000 ($125,000–$140,000 for a partial contribution)
    • For joint filers: In 2021: Up to $198,000 ($198,000–$208,000 for a partial contribution)
  • Conversions:1
    • No income limits; married couples filing separately are also eligible

Fund Offering

  • Over 130 Fidelity Advisor Funds®

Maximum Contributions

  • Lesser of 100% of compensation or $6,000 if under age 50; $6,500 if age 50 or older2
  • Maximum contribution is reduced by any amount contributed to a Traditional IRA for the same year
  • Spousal IRA for nonworking spouse: $6,000; $7,000 if spouse is age 50 or older2
  • Contributions are not tax deductible

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 creditors3
  • No required minimum distributions during the IRA owner's lifetime
  • Flexible distribution options for estate planning and tax management

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
 
 

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