PRODUCTS & SERVICES
Minimum Required Distributions
Fidelity makes it easy
to manage your MRDs.
IMPORTANT MRD DEADLINES
April 1
•
If you turn age 70½ this year, you generally must take your first MRD
by April 1 of next year.
•
If you turned age 70½ last year, and have not satisfied your first-year
MRD, you generally must take your first MRD by April 1 of this year
and your second MRD by December 31 of this year.
•
If you own a Keogh Profit Sharing Plan, Money Purchase Plan, or SelfEmployed 401(k) Plan, are still working, and are not more than a 5%
owner of the business you work for, you may delay your first MRD until
April 1 of the calendar year after the year you retire.
December 31
•
ii
If you turned age 70½ before last year, you generally must take your
annual MRD by December 31 of this year.
Understanding Your MRDs
Congratulations on saving for your retirement! If you’ve been
saving money in a tax-deferred retirement savings account,
such as an IRA or 401(k), turning 70½ is a major milestone.
That’s because the Internal Revenue Service (IRS) generally
requires that you begin making withdrawals, or Minimum
Required Distributions (MRDs), soon after you turn age 70½.
Although the process can be complicated, Fidelity can help
make it easier.
We’ve divided this brochure into four sections to give you
quick access to the information you need:
1. What Is an MRD?
2. How to Have Fidelity Calculate and
Distribute Your MRDs
3. Understanding How to Calculate Your MRDs
4. Managing Your MRDs
And, on the last page, we have an MRD checklist
for quick reference.
Ready to get started? Let’s go.
As you learn about MRDs and think about how to ensure
timely distributions to avoid penalties, be aware that you have
two options:
OPTION
1
OPTION
Take your MRDs yourself
2
Let Fidelity help
STEP 1
Make sure you understand the IRS requirements and potential penalties (pages 6–8).
STEP 2
Consider the pros and cons of delaying
your first MRD (pages 10 and 12).
STEP 3
Review the MRD tracker on Fidelity.com
to identify how much you may need to
withdraw. Then just confirm or adjust this
amount using the worksheet available
online at Fidelity.com/learnmrd.
Yes!
Review Section 2 in this brochure,
then go to Fidelity.com/autowithd
and enroll in automatic withdrawals
for your MRD, or call a Fidelity
Retirement Representative at
800-544-4774 for help. That’s it!
Now relax and go to Section 4
to learn more about managing
your distributions.
You may still want to review Section 4 of this
brochure, just so you’ll be familiar with the
process before you speak with a representative.
STEP 4
Set up and take your distribution in one of
three ways, and plan to repeat the process
every year (page 22).
Manage your MRDs
Whether you take your MRDs yourself or have Fidelity do it for you, you’ll still need to manage your distribution.
A Fidelity Representative can help you decide if you should use the money for expenses or reinvest it. So either
way, we encourage you to review Section 4 of this brochure, then call a Fidelity Representative to make sure your
MRDs fit into your overall plan for having the income you need in retirement.
2
1
What Is an MRD?
What Is an MRD?
MRD stands for “Minimum Required Distribution,” and it
refers to the IRS regulation that applies to money saved in
a tax-deferred retirement savings account, such as an IRA
or 401(k). You will generally be required to begin making
withdrawals (MRDs) soon after you turn age 70½.
Why MRDs were created.
Automatic withdrawals
Sign up for automatic withdrawals
at Fidelity.com/autowithd, and based
on the information you provide,
Fidelity will:
• Automatically calculate the minimum
amount you need to withdraw from
your IRA assets and Keogh assets
each year
• Direct those withdrawals to you, your
bank account, or into a Fidelity nonretirement account that you specify
• Notify you annually each January
of your MRD estimate amount and
schedule for the year
4
Tax-deferred retirement accounts were created
based on the belief that tax breaks on contributions and earnings would encourage people to
save for retirement. To fund these tax breaks
and to ensure that the government has a steady
stream of tax revenues, the IRS requires that you
begin taking money out of these accounts not
long after you reach normal retirement age.
Consolidating your retirement accounts and
signing up for automatic withdrawals may
make managing your withdrawals easier and
reduce the chance of missing a deadline and
incurring penalties. While you have to take
minimum distributions from your Fidelity IRA
or 401(k) accounts, you do not have to move
those funds outside Fidelity.
What Is an MRD?
There are some very important
things you need to take into
account as you begin to plan
to take your MRDs.
• IRS requirements
• Timing
• Penalties
• Taxes
• Options
Let’s take the process step
by step. Remember, if you
have questions, a Fidelity
Retirement Representative
can help.
5
Know the IRS Requirements
It’s always important to understand what the IRS requires.
Substantial penalties may apply if you do not meet the
minimum withdrawal amounts and deadlines.
• For Traditional IRAs, Rollover IRAs, SEP-IRAs,
SARSEP IRAs, and SIMPLE IRAs, you must
begin taking MRDs by April 1 of the year after
you turn 70½. There are no exceptions that
allow you to further delay taking MRDs from
these accounts. You must calculate the MRD for
each of these account types separately, but you
can withdraw the total MRD amount from any
one or any combination of these accounts.
• You are not required to take MRDs from a Roth
IRA during your lifetime, and you cannot satisfy
an MRD requirement with a withdrawal from a
Roth IRA.
• If you are age 70 or older, still working, and
don’t own more than 5% of the company you’re
working for, you can generally delay taking
MRDs from that company’s 401(k), 403(b),
or Keogh up until April 1 of the year after you
retire. This exception does not allow you to
delay MRDs from other plans you may hold
with other companies you no longer work for.
6
(Note: Some older 403(b)s have special rules
that allow participants to delay MRDs until age
75.) Check with your plan administrator for any
special rules your plan may have.
• MRDs from 401(k) and Keogh accounts must be
calculated separately for each account and must
be taken from their respective accounts.
• MRDs for 403(b)s must be calculated separately
for each account, but the total amount of the
MRD can be withdrawn from any one or any
combination of your 403(b) accounts.
• For any account in which an MRD is required,
any distribution from that account during the
year will count toward that year’s MRD. Amounts
withdrawn in excess of the MRD, however, do
NOT reduce the MRDs required in future years.
• For the 2009 calendar year, MRDs have
been suspended per the Worker, Retiree, and
Employer Recovery Act of 2008. Please check
on Fidelity.com and enroll your email address
so we can send information to you regarding
any changes in regulations.
IRS Requirements
Time your withdrawals.
Our MRD tracker makes
things easier
The year you turn 70½, the MRD
Tracker will appear on your retirement
account History page on Fidelity.com.
From then on, it will always be there,
and will be updated daily to show you:
• Your MRD estimate for IRAs and
Fidelity Retirement Plan accounts
such as Keoghs.
If you turn age 70½ this year and none of the
exceptions that allow you to delay your MRDs
apply, you have until April 1 of next year to take
your first annual MRD. In subsequent years, the
deadline for taking MRDs is December 31.
Note: The information in this section is for the
original owners of IRAs, 401(k)s, 403(b)s, and
Keoghs only. If you own a different type of retirement account, or if you inherited a retirement
account, different rules apply. Please consult your
tax advisor for more information.
• A total MRD for all your Fidelity IRAs.*
• Distributions you’ve taken this year.
Go to Fidelity.com/myMRD, or see
page 18 for more detailed information.
*The total MRD for all your Fidelity IRAs does not
include Roth IRAs, inherited IRAs, workplace savings
plans, or annuities.
7
It Pays to Avoid Penalties
It’s important that you understand and meet the
MRD deadlines to avoid paying penalties.
Here’s the bottom line.
• If you are 70½ years or older, you may be
required to take an MRD.
• If you are not yet 70½, you don’t need to take
an MRD, but you may want to learn about them
so you can plan for the future.
• If you’ve already turned 70½ and have begun
taking MRDs, you need to continue taking your
annual MRD.
• If you do not take all or a portion of your
MRD by the required deadline, you may be
subject to a 50% IRS penalty on the amount
not timely taken, even if you withdraw it later.
There is no penalty for withdrawing more than
the MRD, however.
Know how your MRDs will be taxed.
Your withdrawals will be taxed as ordinary
income for the tax year in which they’re taken.
They also may be subject to state and local
taxes. Nondeductible (after-tax) contributions
to Traditional IRAs should be reported on IRS
Form 8606 in the year they are made. It’s your
responsibility to track them. For tax purposes, if
you made any nondeductible contributions to any
Traditional IRA, you will be required to aggregate
all your non-Roth IRA accounts together to
determine the portion of each distribution that
8
is considered a nontaxable return of principal,
and the portion that is taxable, regardless of
the IRA from which the distribution is taken.
This is also done on IRS Form 8606. Unless you
direct us otherwise, the IRS will require Fidelity
to withhold 10% of your IRA withdrawal for
prepayment of federal income taxes (excluding
Roth distributions).
You may direct Fidelity not to withhold federal
taxes at the time of distribution, but you will
be responsible for the full payment of federal
income tax and any state or local taxes, as well
as any penalties that may apply. You can elect to
have taxes withheld at a rate greater than 10%.
Applicable state and local taxes may also be
withheld. Your actual tax liability may be more or
less than the amount withheld.
Each year, withdrawals and any tax withholding
from your Fidelity tax-advantaged retirement
accounts will be reported on Form 1099-R to both
you and the IRS.
It’s part of your retirement plan.
Whether you manage your MRDs yourself or have
Fidelity do it for you, you will still need to decide
what to do with your distribution. We encourage
you to review Section 4 of this brochure, then
call a Fidelity Representative to make sure your
plan to use your distribution for expenses, or to
reinvest it, fits into your overall plan for having the
income you need in retirement.
Avoiding Penalties
Manage your withdrawals with a mySmart Cash Account.
®
One of the safest and most flexible ways to
manage your MRD withdrawals is with a direct
deposit into a Fidelity® mySmart Cash Account.®
You can use it to pay expenses or invest through
your Fidelity Account.®
• FDIC eligible1
• Free checkwriting, online bill payment,
and bank transfers
• No-annual-fee Fidelity American Express®
Rewards Cards3
Visit us at Fidelity.com/mysmartcash to open an
account or learn more.
• Free debit/ATM card with reimbursed
ATM fees2
The Cash Balance in the mySmart Cash Account is swept to an FDIC-insured account at a Program Bank, which earns a variable rate of interest. The
deposit at the Program Bank is not covered by SIPC. The deposit is eligible for FDIC insurance subject to FDIC insurance coverage limits. For more
information about FDIC insurance coverage, please visit the FDIC Web site at www.FDIC.gov. As referenced in the FDIC-Insured Cash (Core) Disclosure
Statement for the mySmart Cash Account, customers are responsible for monitoring their total assets at the Program Bank to determine the extent of
available FDIC insurance. All FDIC insurance coverage is in accordance with FDIC rules. Go to Fidelity.com/mysmartcashaccount to see a list of Banks
Eligible to Receive Cash or the Bank Assigned to Receive Your Cash.
2
All Fidelity ATM withdrawal fees will be waived for your mySmart Cash Account.® In addition, your mySmart Cash Account® will automatically be
reimbursed for all ATM fees charged by other institutions while using a Fidelity Visa® Gold Check Card linked to your mySmart Cash Account® at any
ATM displaying the Visa®, Plus,® or Star® logos. The reimbursement will be credited to the mySmart Cash Account® the same day the ATM fee is debited
from the account. Please note, there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your
account. The Fidelity Visa® Gold Check Card is issued by PNC Bank, NA, and administered by PFPC Trust Company, which are not affiliated with Fidelity
Investments. The third-party trademarks appearing herein are the property of their respective owners.
3
For information about the rates, fees, other costs, and benefits associated with the use of this credit card, or to apply, go to www.fidelity.com/creditcards
and refer to the disclosures accompanying the online credit card application, or call FIA Card Services toll free at 1-866-598-4971. This credit card program
is issued and administered by FIA Card Services, N.A., which is not an affiliate of Fidelity Investments. American Express is a federally registered service
mark of American Express and is used by issuer pursuant to a license.
1
9
Delaying Your First
MRD — an Option
The IRS gives you two MRD options in the year you are
required to take your first MRD:
1. Take it by December 31
2. Delay it until April 1 of the following year
But if you delay, you will be required to take
both your first and second MRDs in the same
tax year. Note the possible pros and cons of
this decision.
Tips
PRO: Delaying your first MRD means your
retirement assets will remain invested — and
tax deferred — for a longer period.
• Determine whether taking your first and
second MRDs in the same tax year would
adversely affect your tax situation. See
more details on page 12.
CON: You will have to take your first and second
MRDs in the same tax year. That might adversely
affect your tax situation. Consult a tax advisor to
evaluate your individual tax situation.
• Make sure you take the entire amount
of your MRD on time to avoid the 50%
IRS penalty on the portion not distributed
on time.
10
Delaying Your First MRD
11
Delaying Your First MRD —
Familiarize Yourself with the
Pros and Cons
As the hypothetical examples below illustrate,
taking your first MRD in the year you turn 70½
may reduce the amount of your second MRD,
allowing you to keep more money invested in
your retirement account — and potentially reduce
the tax liability on these two MRDs. However, a
higher balance in the second year may result in a
larger MRD and associated tax in later years
These hypothetical examples assume a balance
of $300,000 in a single Traditional IRA on 12/31
of the year prior to turning 70½. These results
assume no change in the market value of
the IRA’s investments for the entire period.
The more volatile your IRA investments,
the less likely you will be able to assess the
market’s impact on the 12/31 account values
used to calculate your MRDs.
Because MRD #1 is computed using a life
expectancy of 27.4 years and MRD #2 is
computed using a life expectancy of 26.5 years,
taking your first MRD in the year that you turn
70½ may reduce the amount of your second
MRD, allowing you to keep more money
invested in your retirement account, and
potentially reducing the tax you will pay.
OPTION 1:
OPTION 2:
Delay your first MRD
Don’t delay your first MRD
If you turn 70½ and decide to wait to take your
first MRD until April 1 of the following year, your
calculation will be based on the prior year-end
balance, which includes the undistributed year
#1 MRD amount. Assuming no other market
value changes in your account, both MRDs will
be based on $300,000. Using the Uniform Table
available on Fidelity.com/learnmrd, your MRD
amounts would be:
If you take your first MRD by December 31 of
the year you turn 70½, your second MRD will be
based on the prior year-end balance, which does
not include your first MRD amount. Assuming no
other market value fluctuation in your IRA, your
year #2 MRD would be based on a lower fair
market value of $289,051, because your year #1
MRD would have already been distributed. Using
the Uniform Table, your MRD amounts would be:
MRD #1
$10,949.00
MRD #1
$10,949.00
MRD #2
$11,320.75
MRD #2
$10,907.00
Total:
12
$22,269.75
Total:
$21,856.00
MRDs can seem a bit overwhelming at first.
process simple and easy.
A Fidelity Retirement Representative can
answer your questions and help you make
the choices that are right for you.
How to Have Fidelity Calculate
and Distribute Your MRDs
The good news: Fidelity can make the whole
2
Take the Worry out of
Your MRDs — for Free
Automatic withdrawals help make taking your distributions
as easy as possible by managing the IRS requirements and
deadlines for your MRDs. Fidelity will calculate and distribute
your MRDs for any applicable Fidelity retirement accounts on
a regular, prescheduled basis. You can sign up at any time,
but a good idea might be to call us three months before
you turn 70½.
Automatic withdrawals will:
• Provide information to help you understand
IRS requirements and deadlines.
• Automatically calculate and withdraw your
MRD each year.
• Direct those withdrawals to a Fidelity
non-retirement account you specify, to you,
or to your bank account.*
Consolidate your
retirement accounts
• Notify you each January of your annual
MRD estimated amount and scheduled
distributions for the upcoming year. (You
will also receive a confirmation when your
plan has been activated after you have
returned a signed enrollment form.)
We can help you manage your
MRD only on the accounts you hold
at Fidelity. That’s one more reason
to consider consolidating all your
retirement accounts.
A Fidelity Representative can give you key
points to consider to help you decide whether
or not you should delay your first MRD.
*Costs could be associated with other investment accounts.
14
Let Fidelity Help
When you sign up for automatic withdrawals, Fidelity will
waive the usual minimum investment requirements in the
event you decide to open a Fidelity® mySmart Cash Account®
or Fidelity Account® (a nonretirement brokerage account) to
receive your distributions.
For ways to manage your
MRDs and your retirement,
review Section 4.
What to Do Next
To have Fidelity handle your MRDs, take these steps today:
1
Set up your free automatic withdrawals for your MRDs. Enroll
in automatic withdrawals at Fidelity.com/autowithd. The online
enrollment is easy and will take you through the process to establish
your MRD plan. Or call a Fidelity Retirement Representative who will
help you complete the Automatic Withdrawals Request Form over
the phone and answer any of your questions. Just return the form
with your signature to activate your automatic withdrawals plan. (You
may want to review Section 1 of this brochure before you call.)
2
Make sure your MRDs are being integrated into your overall
retirement plan. Consolidating your retirement accounts at Fidelity
is an important part of being able to more easily manage your entire
financial picture. By consolidating, automatic withdrawals can help
make sure you are meeting all your MRD requirements.
Get started today — just call 800-544-4774.
Do you have a Retirement Income Plan?
If you don’t yet have a retirement plan in place, a Fidelity Retirement
Representative can help you set one up. Call 800-544-4774 today.
16
Determining your MRDs on your
own — with a little help.
This section will walk you through the process,
step by step, and help you understand what you
need to do, and why. If you’re already 70½,
you can begin with the MRD tracker.
3
Understanding How to
Calculate Your MRDs
Be sure you have reviewed the information
on page 12 to familiarize yourself with your
distribution options.
Calculating Your MRDs
If you decide to manage your MRDs on your own, there are
a few ways to determine what the correct amount should be.
But remember that regardless of which method you choose,
you will need to recalculate them every year.
Two ways to calculate your MRDs
1. Have Fidelity do it for you.
• Sign up for automatic withdrawals, then
every year, Fidelity will calculate your MRD
and distribute it as you have scheduled. Go to
Fidelity.com/autowithd to enroll online. Or call
a Fidelity Representative at 800-544-4774 and
ask for an enrollment form.
• Track your distributions during the year using
our online tool, MRD Estimate (see directions
next page)
2. Do it yourself.
• Start with our online MRD Estimate tool and
view the estimated amount you will need to
withdraw. (See directions on next page)
• Use our online MRD Calculator at Fidelity.com/
mrdcalc to input your information and confirm
or adjust your estimated MRD amount. Please
note that the online MRD Calculator is intended
for use with IRAs of the original owner only,
not inherited IRAs.
• Then, take a distribution online or complete and
return a single distribution form. This form and
others are available online at Fidelity.com in the
Customer Service section.
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Important MRD Estimate information:
Please note that the MRD Estimate calculations
do not include:
• Rollover, or transfer, of additional assets into
a new or existing retirement account after
December 31 of prior year
• MRDs for retirement accounts such as workplace savings 401(k)s, 403(b)s or annuities, or
for inherited retirement accounts
Multiple retirement accounts.
If you have more than one IRA, you’ll need
to calculate the MRD for each one every
year. You can combine the MRD amounts
for all of your IRAs and withdraw the total
amount from whatever IRA or combination
of IRAs you want. (Non-Roth IRAs only.)
Additional important information:
• Retirement accounts not discussed in
this brochure, or inherited retirement
accounts, may follow a different set of
rules. Consult your tax advisor or a Fidelity
Retirement Representative.
• Make sure you use the market value of each
of your retirement accounts as reported to
you as of December 31 of the prior year.
This balance may need to be adjusted for
any transfers or rollovers that were in transit
at year-end and were not credited to the
account until after December 31. Refer to
your first-quarter statements for any rollover
and transfer amounts.
Calculating Your MRDs
Track your MRD
Use our quick, easy online
tool to:
• Estimate your MRD distribution
• Keep track of distributions
• Give yourself easy access to
important MRD information
for all your Fidelity retirement
accounts (another good reason
to consolidate all your retirement
accounts at Fidelity)
To track your MRD:
• Log into your Fidelity account
at Fidelity.com
• Select a retirement account
• Click “History” on the left hand
navigation bar
• Track your MRD estimates and
current distributions in the right
hand column
• Click “Enlarge Print/View
Calculation” to see the calculation
n
behind the estimate
• Click “Enroll in Automatic
Withdrawal” to sign up, or “View
your Automatic Withdrawal” if
you have already enrolled.
Screen shot is for illustrative purposes only.
19
Other Things to Think About
If you have qualified plan accounts — such as a Keogh Profit
Sharing, Keogh Money Purchase, or Self-Employed 401(k),
you must calculate and satisfy your MRDs for these separately
from your IRAs. MRDs for 403(b)s, however, may be aggregated
together similar to the way MRDs for non-Roth IRAs can be
aggregated together.
Consult your tax advisor or plan administrator for
calculation rules for other types of tax-advantaged
retirement plans.
Make your life easier by consolidating.
It’s fairly straightforward to calculate your MRDs
and make the proper distributions, but only if
you’re working with complete information. If you
have retirement accounts at other financial institutions, now may be the time to consider consolidating them at Fidelity. It may make it easier to
keep track of your assets and may potentially
minimize your account maintenance fees.
20
Are you eligible for a spousal exception?
If your spouse is more than 10 years younger
than you, and was the sole primary beneficiary
of your account for the entire distribution year,
you should qualify to use the Spousal Exception
method to calculate your MRD for that account.
This method usually results in lower MRDs as
it allows you to use a distribution factor from
the Joint Life Expectancy Table rather than
the Uniform Lifetime Table for calculating MRDs.
These tables are available online at Fidelity.com/
learnmrd. Call a Fidelity Retirement
Representative for more information.
Things to Think About
AUTOMATE YOUR DISTRIBUTIONS
With Fidelity’s automatic withdrawals you can
instruct Fidelity to automatically calculate, withdraw, and distribute your MRDs — for free.
Just review Section 2 and go online to enroll, or
call 800-544-4774.
Setting Up and Taking
Your MRDs
To take your required distribution from your IRAs held at Fidelity,
you’ll need to request either a single withdrawal or set up
automatic withdrawals.
Request a single withdrawal in one of
three ways:
1) Visit Fidelity.com to request a single
withdrawal online (available only for IRA
accounts)
2) Call a Fidelity Retirement Representative
and request a single IRA withdrawal over
the phone* (Keogh accounts require written
documentation)
3) Visit Fidelity.com/forms to download a
copy of the Single Withdrawal Request
form for either your IRA or Keogh account.
Complete the form, sign and return it
to Fidelity
* Certain restrictions apply.
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Set Up Distributions
Enroll in automatic withdrawals to
manage your MRDs.
Decide how you want to use
your distributions.
1) Enroll online. Go to Fidelity.com/autowithd
and log in. This online enrollment will allow
you to establish a new automatic withdrawal
plan or edit an existing one
After calculating your MRDs, or confirming the
amount on the MRD tracker, you’ll need to decide
whether or not you need the money to cover
expenses — or reinvest it so that it has the
potential to continue growing. If you can afford
to reinvest, see some of the options available to
you in Section 4. Now would also be a good time
to see how your distribution fits as income in your
overall retirement plan. If you don’t yet have a
plan, or would like to review your current plan,
call a Fidelity Retirement Representative.
2) Call a Fidelity Retirement Representative
and ask to complete the Automatic
Withdrawals form over the phone
(available only for IRA accounts)
3) For IRAs: Visit Fidelity.com/irapws-mrd
to download a copy of the IRA Automatic
Withdrawals for MRDs form
4) For Keoghs: Visit Fidelity.com/keoghpws
to download a copy of the Keogh
Automatic Withdrawals form
Ready to take your MRDs? See the next page.
What to Do Now
It’s important to make certain you’re meeting all MRD
deadlines and rules. If you’re in doubt, or have any questions,
contact a Fidelity Retirement Representative. In general,
just make sure you:
Withdraw the required amount of money from your
retirement accounts annually by the specific deadline,
and pay all applicable taxes on the money you withdraw.
1
2
Decide how you want to receive your distributions, and
whether you want to use them for income, or to reinvest in
a nonretirement account. And remember, a mySmart Cash
Account® is a great way to manage your distributions.
3
Incorporate your distributions into an income plan that
works best for your retirement. Even if you choose to calculate
your MRDs on your own, having a Fidelity Retirement
Representative help you create a retirement income plan
is a good idea.
If you have any questions, or need help, call 800-544-4774.
24
Managing Your MRDs
Whether you’re letting Fidelity handle your
Minimum Required Distributions with automatic
withdrawals, or doing the calculations yourself
(starting with the MRD Estimate), now may be
a good time to understand how your MRDs fit
into your overall retirement income plan.
A solid plan helps you to realistically estimate
your income and expenses, and seeks to
increase the chances that your money will last
as long as you need it.
4
Managing Your MRDs
Spending or Investing
Your MRDs
As you begin to take your MRDs, you will periodically need
to decide whether you’ll need this money for expenses or
whether you should reinvest it — although you may wish to
take a blended approach by using some funds as income
while investing the balance.
Use a mySmart Cash Account
for your expenses
®
Having a mySmart Cash Account® is one
of the best ways to manage your MRD
distributions.
• There’s no risk of your MRD checks
being lost or delayed
• Use our convenient ATM/debit card,
checkwriting, and online bill payment
features for your everyday spending
• Transfer money directly into your Fidelity
Account® for investing
• Transfer money online between your
mySmart Cash and bank account(s)
Go to Fidelity.com/mysmartcash to
learn more.
26
OPTION 1: Use your MRDs to pay for
expenses.
You can request that your distribution be deposited directly to your mySmart Cash Account, to
your bank via Electronic Funds Transfer, or sent
to you via check. Even if you don’t need additional income now, using your MRDs for current
expenses may keep you from having to make
withdrawals from another account that you would
prefer to leave intact.
OPTION 2: Invest your MRDs to potentially
keep your money growing.
You can have the withdrawn amount placed
into a nonretirement account, such as a Fidelity
Account,® and it will continue to be invested as
you choose. If you do not already own a nonretirement account, visit Fidelity.com/openaccount.
With a Fidelity Account® you can invest in stocks,
bonds, and mutual funds — and access your
money by check, credit card, or phone. (Note:
If you decide to sign up for Fidelity’s automatic
withdrawals, we’ll waive the usual minimum
investment requirements for your account.)
Investing Your MRDs
Regardless of what you decide to do with your MRDs, remember to
think of your IRA and other retirement accounts as part of your overall
plan for retirement income and wealth transfer.
Remember, you’ll still pay taxes
on the amounts you withdraw for
your MRDs, no matter how you
use them.
27
Consolidating May Make Your
Retirement Easier to Manage
Get a clear view of your finances.
Having all your retirement accounts in one place
let’s you see your financial “big picture” more
clearly, and can help you make more accurate
decisions about your options.
Create an income plan for retirement.
Talk to one of Fidelity’s trained Retirement
Representatives about Fidelity Retirement Income
Advantage,® a suite of complimentary retirement
services designed to help make sure you have
the income you need in retirement. You can
schedule an in-person or phone consultation
to assess your financial situation, analyze your
expected expenses and income, and help
determine asset allocation and withdrawal
strategies. Call 800-544-4774.
Consider annuities to generate income.
An income annuity can turn a part of your savings
into monthly retirement income checks. It may give
you the peace of mind that comes with having
regular income you can’t outlive.1 Fidelity2 makes
available a variety of annuities that offer a choice
of flexible options from a selective network of
highly rated insurance carriers.3
Another benefit of annuities is that the payments
you receive from an income annuity automatically
satisfy the MRD requirements for the retirement
assets used to purchase it.
Give yourself flexibility.
Having all your retirement accounts at Fidelity
gives you the flexibility to do more with your
distribution. You can have us electronically
deposit all, or a portion, of your assets in a
mySmart Cash Account® to pay expenses,
or transfer your distribution to your Fidelity
brokerage account to give yourself the
opportunity to keep your savings growing.
Consider Fidelity’s professional portfolio
management for your retirement savings.
Fidelity Portfolio Advisory Service® offers you
portfolio management by a dedicated team of
investment managers. Your investment team can
assess your investment and income needs, then
select and implement your target asset allocation
in a model portfolio of mutual funds.
Fidelity Portfolio Advisory Service® is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. Fidelity
Private Portfolio Service® may be offered through the following Fidelity Investments companies: Strategic Advisers, Inc., Fidelity Personal Trust Company,
FSB (“FPT”), a federal savings bank, or Fidelity Management Trust Company (“FMTC”). Non-deposit investment products and trust services offered through
FPT and FMTC and their affiliates are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, are not
obligations of any bank, and are subject to risk, including possible loss of principal. These services provide discretionary money management for a fee.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.
1
Guarantees are subject to the claims-paying ability of the issuing insurance company.
2
Fidelity refers to Fidelity Investments Life Insurance Company and, for NY residents, Empire Fidelity Investments Life Insurance Company,® New York, N.Y.
3
Fidelity Network of Insurance Providers includes third-party insurance carriers who issue fixed annuities that are distributed by Fidelity Insurance Agency,
Inc. The carriers are not affiliated with any Fidelity Investments company. Ratings from insurance industry rating agencies are subject to change.
28
Consolidating Accounts
Fidelity has helped millions of people realize
their financial goals, including saving for their
retirement.
Having all your retirement plans at Fidelity
makes it easier for a Fidelity Retirement
Representative to help you meet your goals.
Options for Using
Your MRDs
If you don’t need your MRDs to cover immediate expenses, talk
to your Fidelity Retirement Representative, then consider some
of these options:
Invest in a wide range of investments
in a nonretirement account.
Fund a Roth IRA — for tax-free
distributions later.
Fidelity nonretirement brokerage accounts allow
you to invest in a wide range of investments,
including mutual funds, individual securities,
and bonds. Fidelity manages a wide variety of
mutual funds, from broad index funds to actively
managed growth, income, sector, and bond
funds. Visit Fidelity.com for more information
on different types of investments that may be
of interest to you.
If you continue to have earned income, and meet
eligibility requirements, you can continue to
contribute to a Roth IRA (up to the annual contribution limit). Distributions from Roth IRAs are tax
free provided the five-year aging requirement has
been met and you are over age 59½ or disabled.
Roth IRAs are not subject to MRDs during your
lifetime. For complete rules on funding a Roth
IRA, go to Fidelity.com/retirement.
To help manage your everyday spending,
a mySmart Cash Account® is an innovative
alternative to a traditional bank checking
account. One of its many benefits is the fast,
secure transfer of assets into and from your
Fidelity brokerage accounts.
Use your MRDs as a rebalancing tool.
30
If your portfolio has shifted in any meaningful way
from your target asset allocation over the course
of the year, you may want to consider using your
MRDs in ways that help keep your allocation on
track. Consider taking them from an asset class
in which you are overweighted and investing the
proceeds in a taxable account in an asset class
in which you are underweighted.
Options for Your MRDs
Review and update your
beneficiary designations.
If you’ve had a significant life
event in your family, such as a
birth, marriage, or death, be
sure to make any necessary
updates. In addition, you should
ensure — at least on a periodic
basis — that your designations
match your current estate
planning wishes.
Note: Retirement account assets generally
pass to beneficiaries outside the instructions
of a will. So individuals you have designated
as beneficiaries will generally receive your
retirement assets after your death, pursuant
to the Fidelity IRA Custodial Agreement
or any applicable Fidelity Retirement Plan
document. To designate or change a beneficiary, visit Fidelity.com/goto/beneficiary.
31
Your MRD Checklist
Now that you have a solid understanding of the MRD
requirements for your retirement accounts, it’s time to take
action. Review the checklist below, which provides a guideline
of next steps that may be appropriate for you.
■
Incorporate your MRDs into a
retirement income plan. Call a
Fidelity Retirement Representative at
800-544-4774 to create or update your
retirement income plan, for an MRD
consultation, or to reassess your overall
retirement situation.
■
Consider consolidating your retirement
assets to make it easier to manage your
MRDs and retirement income needs. To
transfer assets to Fidelity, please complete
the Transfer of Assets form online by
visiting Fidelity.com/goto/transfer.
■
Confirm the MRD Estimate. Are all
your accounts and assets included?
Visit the Retirement Resource Center
at Fidelity.com/retire for online MRD
calculation tools. Always feel free to
call 800-544-4774 to speak with a
Retirement Representative to help you
with the process.
■
Manage your distributions: If you
plan to use your MRD for immediate
expenses, you can transfer withdrawals
directly to a mySmart Cash Account® or
have a payment sent to you. If you plan
to reinvest your distributions, you can
transfer the funds to your Fidelity
Account. Or if you plan to use your MRD
for both spending and reinvestment, you
can open both accounts and use them
together.
Use the MRD Estimate to estimate and
track the amount of your annual required
distribution. See page 19.
■
Sign up for automatic withdrawals,
then have Fidelity automatically
calculate, withdraw, and distribute your
MRD each year on a schedule you
specify. To enroll in this automated MRD
service, visit Fidelity.com/autowithd or
call a Fidelity Retirement Representative
who can help you complete the online
enrollment or prefill an enrollment form
to mail to you.
Determine your deadline for taking
your MRDs.
■
■
32
Visit us online at Fidelity.com to open
the account(s) that’s right for you, or to
learn more.
■
Review and update your beneficiary
designations. To change or designate
a beneficiary, visit Fidelity.com/goto
/beneficiary.
Make sure you’re on track for retirement by
preparing for your MRDs well before you
reach 70½.
Contact a Fidelity Retirement Representative
at any time to discuss your MRDs or any of
your other retirement planning needs.
Questions? Call 800-544-4774
or visit Fidelity.com/retirement
Click
Fidelity.com
Call
800-FIDELITY
Visit
Fidelity Investor Centers
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.1 trillion,
including managed assets of nearly $1.5 trillion as of September 30, 2009. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to over 20 million individuals and institutions as well as
through 5,000 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of
workplace retirement savings plans, the largest mutual fund supermarket and a leading online brokerage firm.
The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed
as legal or tax advice. Fidelity does not provide legal or tax advice. Laws of a specific state or laws relevant to a particular situation
may affect the applicability, accuracy, or completeness of this information. Consult an attorney or tax advisor regarding your specific
legal or tax situation.
Before investing, consider the funds’ or annuities’ investment objectives, risks, charges, and expenses.
Contact Fidelity for a prospectus containing this information. Read it carefully.
458381.3.0
Brokerage services provided by Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917
MRD-BRO-0909
1.832586.104
