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
IMPORTANT INFO

* 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.

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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 2023: Up to $138,000 ($138,000 to $153,000 for a partial contribution)
    • For joint filers: In 2023: Up to $218,000 ($218,000 to $228,000 for a partial contribution)
  • Conversions:1
    • No income limits; married couples filing separately are also eligible

Fund Offering

  • Over 150 Fidelity Advisor Funds®

Maximum Contributions

  • Lesser of 100% of compensation or $6,500 if under age 50; $7,500 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: $6,500; $7,500 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

Related Resource:

2
Share the IRA Enrollment Guide with your client

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3
Complete the new account application or rollover form

Related Resource:

  • 1. Shareholders will owe income tax on any taxable portion of the amount that is converted.
  • 2. These amounts are subject to annual cost-of-living adjustments.
  • 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.
 
 

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