Secure Your Future With An
Individual Retirement Account

Is an IRA Right For You? Take our Fidelity Savings
IRA Test and find out.

At Fidelity Savings, we offer several IRA plans, which are highlighted below. You have a choice of several IRA CDs and IRA Money Market Deposit Accounts with an initial opening deposit of $250 giving you a choice of investment options for a sound financial retirement. These IRA investment options allow you to accumulate retirement funds, and an IRA deposit at Fidelity Savings is the best way to save for your retirement. They are FDIC Insured!

Traditional IRAs are easy to maintain, and maybe your choice for a better retirement. These IRAs typically offer two important tax advantages. You maybe eligible to deduct your total annual Traditional IRA contribution on your federal income tax return; and every penny of the earnings in your Traditional IRA grows faster because your earnings grow 100% federal income tax deferred until you withdraw funds from your IRA account. Traditional IRAs are designed to provide retirement income. Therefore, if you have a Traditional IRA, you are required to take annual distributions once you reach a certain age. These distributions are called required minimum distributions (RMDs). Now with increased annual contributions limits and special catch up provisions for accountholders age 50 to 70½, you can enhance your retirement nest egg quicker.

Roth IRAs are not tax deductible, but if the funds are distributed in a “qualified distribution” (e.g. distributed to you after you attain age 59½), they are not subject to federal income tax. Therefore, the earnings on the Roth IRA are generally tax-free. These “tax free” earnings make the Roth IRA the most exciting new personal savings option since IRAs were first permitted in 1975. Now with increased annual contributions limits and special catch up provisions for accountholders age 50+, you can enhance your retirement nest egg quicker.

In summary, you might also be able to save on your present taxes with an Individual Retirement Account, by deducting your qualified contributions from your taxable income. Many Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status and whether you're an active participant in an employer sponsored plan as defined by the Intenal Revenue Service.

With an Individual Retirement Account, you may also be able to defer taxes until you retire, when you will probably be in a lower tax bracket. The chart below shows you how much you may be able to save each year. You may want to consult your tax advisor to review the tax deductible status of an IRA. Regardless of the amount you'll be able to save now on taxes, an IRA is a smart way for you to save for a secure retirement.

IRA Tax Savings Potential Chart

IRA Deductible Contribution Amount	15 % Tax Bracket Savings	28 % Tax Bracket Savings	31 % Tax Bracket Savings	36 % Tax Bracket Savings	39.6 % Tax Bracket Savings
$ 500	$ 75	$ 140	$ 155	$ 180	$ 198
$ 1,000	$ 150	$ 280	$ 310	$ 360	$ 396
$ 2,000	$ 300	$ 560	$ 620	$ 720	$ 792
$ 2,250	$ 337	$ 630	$ 697	$ 810	$ 891
$ 4,000	$ 600	$ 1,120	$ 1,240	$ 1,440	$ 1,584

If You're Changing Employers, An IRA Rollover Makes Sense. If you are retiring or changing jobs and anticipate withdrawing money from your employer's retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover.

You must complete the rollover within 60 days from the date you receive the assets from your old IRA in order to qualify and not pay the mandatory 20% withholding and possibly other penalties as well. For more information about IRA Rollovers or opening a new IRA just give us a call at (215) 788-0448.

Simplified Employee Pension Plan (SEP) is a flexible retirement plan set up by a business owner/employer. The business owner may be a sole-proprietor, a partnership, or a corporation. These plans are popular with smaller businesses, because they are inexpensive and easy to establish and manage. There are no annual contribution requirements, no IRS reporting requirements, and have tax deductible contributions and tax-deferred earnings. A SEP can be established by a business owner even if he/she is the only employee. Now business owners are able to contribute more, and that means more retirement savings and tax benefits! Employers should consult with their counsel or tax advisor.

Savings Incentive Match Plan for Employees (SIMPLE) Plan is an inexpensive retirement plan that a small business owner may set up, even if the business has no employees other than the owner. Contributions are made to special IRAs called SIMPLE IRAs. A SIMPLE IRA plan may be maintained by a corporation, a partnership, or a self-employed individual. The employer must have 100 or fewer employees and the employer may not maintain a qualified plan or SEP plan in which the employees currently accrue benefits. Employers should consult with their counsel or tax advisor.

Coverdell Education Savings Accounts (ESA) can be a valuable savings tool for a child’s education. These flexible accounts can be used in many ways. Whether you want to save for college, pay tuition at a private high school, or provide for an after-school reading tutor, an ESA could help you provide for your child’s or grandchild’s education. Invest in your children’s or grandchildren’s future with tax-advantaged savings for education while they are less than 18 years of age! Please visit the Deposit Products page for more information on ESAs.

For more information prior to opening a Fidelity Savings Traditional, Roth, SEP, SIMPLE IRAs or our ESAs, just call our IRA Administration Department at 215-788-0448. We also have informative brochures designed to help explain our IRA Plans and our ESA program. Kindly ask us for a copy and we will be glad to send it to you.

We can also help you evaluate your wealth accumulation in a retirement account and plan for your financial needs. We invite you to visit our retirement Calculators, which are designed to assist with your financial projections and number crunching.

Let us help you open your retirement or educational deposit account today with an FDIC Insured Fidelity Savings’ CD that gives you the flexibility to choose a term and a yield to meet your financial plans. Fidelity Savings can assist you with Trustee to Trustee Transfers. Just bring your IRA information to us from your existing custodian and we will prepare all the paperwork. There are no commissions, management fees or loads. All your money works for you all the time – it’s guaranteed!