Under the IRS rules, you can contribute up to $5500 this year if you are under 50 years of age and $6500 if you are 50 or over.
Principle (the money you put in) can be withdrawn tax and penalty free at any time. Earnings can GENERALLY be withdrawn tax and penalty free after 5 years if you have reached 59.5 years old.
Beyond that, remember that money you put in is taxed before you put it in and earnings and capital gains inside the fund don't get taxed as long as they remain in the fund.
So, you put in $200 in principle. That money will be invested in whatever you choose (probably mutual funds through Fidelity). You need to look at your Fidelity account online or call them to direct how it's invested. Since this is principle, you can withdraw it at any time.
UPDATE: If it was $200/month auto debit, then they will be taking $200 each month. You can increase this amount up to the $5500 or $6500 figure depending on your age.
Both my wife and I have ROTH IRAs. We max them out every year we can.
RT is correct. In addition you need to understand investing or at the very least, index mutual funds. You must decide upon a the way you'll invest within Fidelity. Read some books. Learn about Mutual Funds. If you don't.... you'll lose the real advantage of your new ROTH IRA.
Fidelity does not have a minimum to open a ROTH IRA. However, many of their mutual funds do have a $2500.00 minimum. So, it sounds like you made your contribution to a mutual fund.
If that is the case, and you don't want to deposit the additional funds right now, contact customer service. Some funds have penalties if funds are withdrawn within a certain time frame, and talking to them will probably enable you to avoid it.
OK i am completely lost. I just opened a ROTH IRA with Fidelity and contributed $200. I read online the minimum to deposit when opening a ROTH IRA with Fidelity is $2500??? I CAN deposit an additional $2300 if I need to..
Right now my account says:
Total Account Value: $200
Cash available to trade: $200
Settle Cash: $200
Cash available to withdraw $200
What is the process after I contributed $200?
It seems a more complicated than my 401k that I also have with Fidelity.
Please elaborate your answers as much as possible, I don't want to mess anything up.
Thanks!
