Here are some things to keep in mind if you want to deposit your Fidelity Rewards into these accounts:
All IRA and 529 plan contributions resulting from the card will be considered current-year contributions. The ability to contribute to an IRA or 529 college savings plan account is subject to IRS rules and specific program policies, including those on eligibility and annual and maximum contribution limits.
To the extent that you are not eligible to make an IRA or 529 plan contribution or have already made your maximum IRA or 529 plan contribution for the year, any additional contributions can subject you to IRS excise taxes. It is your responsibility to ensure that any deposits to your Fidelity account are eligible contributions and do not violate the terms of your Fidelity accounts, applicable IRS contribution rules, or limitations or other applicable laws or regulations. Consult your tax advisor concerning tax consequences.
Prior to accepting the transfer of Points from Elan Financial Services, Fidelity will verify whether you have reached your maximum contribution amount with Fidelity for that year. If we determine that you have fully contributed to your Fidelity IRA accounts for that year or reached the maximum contribution limit on your Fidelity-managed 529 plan account, Fidelity will not accept the Points transfer, and your Points will continue to accrue at Elan Financial Services. Customers can continue to let Points accrue until the next year, or they can redeem these Points for other rewards, such as travel, merchandise, gift cards, or statement credit.
Under IRS rules, individuals who do not have earned income are generally not eligible to make IRA contributions. Spousal IRAs are not eligible.
IRS rules also prohibit IRA contributions from being made to Traditional and Rollover IRAs for the year an IRA owner reaches age 70½ and beyond.
If you are also making contributions to another company's IRA, Fidelity is unable to monitor whether you have maximized your total annual IRA contributions, and we will not be able to stop the reward contribution from going to your Fidelity IRA.