Both my wife and I have Fidelity IRA accounts, but I've never fully utilized it. I'd like to seed this account throughout the year, but I have questions:

  • How much money can I put in per year? What if I exceed it?
  • With the Roth IRA, is there an income threshold? We file jointly, and average around $180k per year.
  • Does Fidelity provide any kind of metering or reporting to make sure I do this correctly?
  • Also, I'd like to use a targeted retirement fund (like Fidelity Freedom 2035 Fund FFTHX) - can I use this in my Roth IRA account?
  • Fidelity? Aren't they a little expensive? (I mean in terms of fund fees, not account fees.)
    – user296
    Sep 3, 2010 at 5:56
  • 1
    @fennec - based on my most recent research, fund fees run around an average of 0.7%. It's worse than Vanguard. They do, as everyone says, have wonderful customer service if that matters to you.
    – justkt
    Sep 3, 2010 at 11:46

2 Answers 2

  • Here's information about contribution limits.
  • You fall above the threshold a bit.
  • I don't know. I've never overcontributed, so can't say. You can contribute well into 2011 for 2010 tax year, so if you undershoot just make up the difference.
  • I don't see why not!
  • Thanks for the help. Some questions wheren't answered, though: - Will Fidelity alert me if I exceed the limit per year? - What happens if I do? Thanks!
    – Wade
    Sep 3, 2010 at 3:42
  • 1
    I don't know that one. I'm sure they'll tell you if you give them a call!
    – mbhunter
    Sep 3, 2010 at 4:09

The limits for 2011 and 2012 are $5000 or $6000 if you are 50 or older. The 2011 income limit is $169K, but that's MAGI, not gross. With a $180K income, your MAGI is likely below $169, but you can only tell by looking at your return. If you are this close, you might have to convert to a non-deducted IRA, or withdraw the money. Else, you can fund the 2011 IRA when you file the return in 2012 to be sure.

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