Account Types

Question 1

What are the 2 types of accounts Fidelity offers?

Answer 1

1. Fidelity Funds Account
2. The Fidelity Account (a brokerage account)

Question 2

What is a fidelity funds account?

Answer 2

•also referred to as “mutual fund account” or “mutual fund only account”
•only holds Fidelity mutual funds

Question 3

What is the fidelity account?

Answer 3

•brokerage account
•can hold funds from other companies in addition to fidelity funds, such as T. Rowe Price, Vanguard America, etc.
•can hold various other types of securities such as stocks, ETFs, bonds, CDs, & options

Question 4

What are some non-retirement accounts a client might open?

Answer 4

•individual-single owner
•joint-2+ owners
•trust-appointed trustee(s) oversee the account
•corporate-corporation is owner

Question 5

What are some retirement accounts a client might open?

Answer 5

•traditional/rollover IRA
•Roth IRA
•SEP IRA

Question 6

What is an education account a client might open?

Answer 6

•529 plan

Question 7

How do you view a client’s registration in FocusPoint?

Answer 7

FocusPoint—>enter account # in search bar —>on home page next to account # you’ll see the account registration

Question 8

How would a client view their registration information on Fidelity.com?

Answer 8

Fidelity.com—>log in—>registrations listed on left-hand side of the page

Question 9

What is RepWeb view and how do you access it?

Answer 9

•gives you the ability to view a client’s account as if they were logged in
•pull up account in FocusPoint—>click on toolbox in bottom right corner—>click on “customer start page”—>shows you the same screen a client would see when they log in to their account

Question 10

Traditional IRA

Answer 10

•Individual retirement account
•funded by annual contributions from account owners
•contritions can be either tax deductible or nondeductible
•earnings grow tax deferred
•distributions of deductible contributions usually taxable upon withdrawal
•any individual with US earned income (Fidelity policy-contributors must be at least 18)
•nonworking spouses with spouses with US earned income

Question 11

Roth IRA

Answer 11

•contributions nondeductible
•qualified distributions federally tax-free
•fidelity policy-contributors must be at least 18
•clients cannot exceed the modified adjusted gross income (MAGI) limits
—>refer to their tax advisor for this calculation

Question 12

What is the regular contribution limit for traditional IRAs in 2023?

Answer 12

$6,500

Question 13

What is the regular contribution limit for Roth IRAs in 2023?

Answer 13

$6,500

Question 14

What is the 50+ catch up contribution for Roth IRAs in 2023?

Answer 14

$1,000

Question 15

What is the 50+ catch up contribution for traditional IRAs in 2023?

Answer 15

$1,000

Question 16

Rollover IRA

Answer 16

•designed to receive money distributed from employer-sponsored qualified plans, such as 401(k), 403(b), & 457(b) governmental plans
•NOT appropriate for assets from IRA-based retirement plans such as SEP IRAs or SIMPLE IRAs
•generally distributions of tax-deductible contributions & any earnings taxable upon withdrawal

Question 17

529 plan

Answer 17

•while money is in the account no taxes will be due on earnings
•when you take the money out for qualified education expenses, withdrawals are federally tax-free

Question 18

SEP IRA

Answer 18

•designed for self-employed people & small business owners
•allows employers to contribute to IRAs for themselves & for their eligible employees

Question 19

SIMPLE IRA

Answer 19

•for businesses with 100 or fewer employees
•funded by employer contributions
•can be funded by elective employee salary deferrals

Question 20

What is the portfolio advisory services account (PAS)?

Answer 20

•core discretionary investment management component of Fidelity Wealth Services

Question 21

How is one eligible for portfolio advisory services (PAS)?

Answer 21

•willing to give Fidelity discretionary money management control of their assets
•meet account minimums
•willing to pay annual advisory fee for ongoing investment management & personal service
•looking for diversified, multi-asset class portfolio