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Products July 12, 2004
Fidelity Boosts IRA Minimums Including Rollovers
December 31, 2002 (PLANSPONSOR.com) - Individual
retirement account customers at Fidelity Investments -
including those rolling over a balance from a company
retirement plan - will now need to meet a higher balance
threshold.
Reported by Fred Schneyer
The Boston investment giant announced that it was raising its minimum balances for IRAs to invest in a fund from $500 to $2,500 – in line with existing minimums in non-retirement accounts, Reuters reported. The increase applies to traditional IRAs, as well as to Roth and rollover IRAs.
New investors unable to meet the threshold immediately can contribute at least $200 per month until they reach $2,500, Fidelity said.
Fidelity already charges a $12 annual fee for retail fund accounts with balances below $2,000. It waives the fee in certain circumstances, including for households with assets at Fidelity of at least $30,000, the company said.
The increase won’t affect small-business or self-employed retirement savings plans, such as SEP-IRAs, Fidelity said.
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