Having a mix of both pretax and Roth contributions can help create additional flexibility in retirement to respond to a great unknown—future tax rates. For people who expect income in retirement to be as high or higher than their current level, others who expect their tax rate in retirement to be higher than today, or younger people who expect steady income growth over their careers, Roth IRA contributions may be the better choice. But if you believe that your tax rates will be lower in retirement than they are now, you may want to prioritize pretax vehicles like the Traditional IRA.

The SECURE Act of 2019 removed the age limit at which an individual can contribute to a traditional IRA. Prior to 1/1/2020, an individual could not contribute after age 70½. The Act now allows anyone that is working and/or has earned income to contribute to a Traditional IRA regardless of age.

You can contribute up to the lesser of 100% of your earned income or $7,000 for 2024 and 2025. Once you reach age 50, contribution limits on IRAs increase by another $1,000. This allows for a "catch-up" contribution for those nearing retirement.

There is no minimum dollar amount required to open an IRA account with us. Some mutual funds may have minimums required to purchase; review each fund’s prospectus for details.

If you contributed to a Traditional IRA, you will receive Form 5498 from Fidelity in May. This form does not need to be filed with your taxes. Form 5498 summarizes your IRA contributions and fair market value. For help with this tax form, see the IRS Instructions for Form 5498 (PDF).