What is the Fidelity IRA contribution limit in 2026?

The 2026 IRA contribution limit is $7,000 per year for individuals under 50, and $8,000 for those 50 or older. This limit is set by the IRS and applies to all your IRAs combined — you cannot contribute $7,000 to a Fidelity Roth IRA and another $7,000 elsewhere. The Roth IRA phase-out begins at $150,000 MAGI for single filers and $236,000 for married filing jointly.

Does Fidelity offer fractional shares in an IRA?

Yes — Fidelity allows fractional share purchases of any stock or ETF starting from $1. This means you can invest the full $7,000 IRA contribution in any combination of assets without leaving uninvested cash. This is especially useful for high-priced shares like Amazon or Berkshire Hathaway.

Can I invest in Fidelity ZERO funds inside an IRA?

Yes — Fidelity ZERO funds (FZROX, FZILX) are available inside Fidelity IRAs with $0 minimums and 0.00% expense ratios. This makes a Fidelity IRA one of the lowest-cost retirement accounts available. The only catch is that ZERO funds cannot be transferred in-kind to another brokerage — you would need to sell first if you ever move your IRA.

How does Fidelity handle IRA rollovers from a 401(k)?

Fidelity accepts direct rollovers from 401(k), 403(b), 457, and pension plans into a Traditional or Roth IRA. Fidelity provides a rollover specialist who can handle the process and coordinate directly with your former employer's plan. For same-type rollovers (Traditional 401k to Traditional IRA), there is no tax event. Rolling to a Roth IRA triggers ordinary income tax on the amount converted.

Fidelity IRA Review 2026 — Roth, Traditional & Rollover Accounts

Fidelity’s IRA is consistently rated one of the best for individual investors: $0 account minimum, $0 commissions, fractional share purchases from $1, access to ZERO expense ratio index funds (FZROX, FZILX), and free robo-advisor management under $25,000 through Fidelity Go. The 2026 IRA contribution limit is $7,000 per year ($8,000 if you are 50 or older).

Fidelity’s edge: You can invest every dollar of your IRA contribution in fractional shares — no rounding, no leftover cash. At $0 cost in FZROX, you pay nothing to hold the entire US stock market.

Fidelity IRA at a Glance

Feature	Details
IRA types	Roth, Traditional, Rollover, SEP, SIMPLE, Solo 401(k), HSA
Account minimum	$0
Stock/ETF commissions	$0
Fractional shares	Yes — from $1 for any stock or ETF
ZERO funds	Yes — FZROX, FZILX at 0.00% expense ratio
2026 contribution limit	$7,000 / $8,000 (50+)
Robo-advisor	Fidelity Go (free <$25K; 0.35% above $25K)
SIPC protection	$500,000 per account type

Roth IRA vs. Traditional IRA at Fidelity

Factor	Roth IRA	Traditional IRA
Tax treatment	After-tax contributions; tax-free growth and withdrawal	May be deductible; taxed on withdrawal
2026 income limit	$150,000–$165,000 single (phase-out); $236,000–$246,000 married	No income limit for contributions
RMDs	None during owner’s lifetime	Required starting at age 73
Early withdrawal	Contributions (not earnings) withdrawn penalty-free anytime	10% penalty before 59½ (exceptions apply)

The Lowest-Cost IRA Portfolio at Fidelity

A two-fund global index portfolio inside a Fidelity IRA at near-zero cost:

Fund	Ticker	Allocation	Expense Ratio
Fidelity ZERO Total Market Index	FZROX	70%	0.00%
Fidelity ZERO International Index	FZILX	30%	0.00%

Total annual cost: $0.00 — on any balance. Add FXNAX (US Bond Index, 0.025%) as you near retirement to reduce volatility.

Worked Example: $7,000/Year Roth IRA

Starting at age 28, contributing $7,000/year in FZROX and FZILX at an assumed 7% real annual return:

Age	Contributed	Estimated Tax-Free Balance
38	$70,000	~$97,000
48	$140,000	~$273,000
58	$210,000	~$567,000
65	$259,000	~$831,000

The $831,000 is entirely tax-free in a Roth IRA. No income tax on withdrawals, no required minimum distributions.

Fidelity Go: Free Robo-Advisor Inside Your IRA

Fidelity Go is Fidelity’s robo-advisor, available inside Roth and Traditional IRAs:

Balance	Fee	What You Get
Under $25,000	0%	Automated portfolio, rebalancing
$25,000 and above	0.35%	Automated portfolio + coaching calls

Fidelity Go invests in Fidelity Flex mutual funds (0.00% expense ratio, exclusive to Fidelity Go). For accounts under $25,000, Fidelity Go is genuinely free — no management fee, no fund expenses. It is competitive with Schwab Intelligent Portfolios for small balances, without the cash drag.

Fidelity IRA vs. Schwab and Vanguard

Feature	Fidelity	Schwab	Vanguard
Account minimum	$0	$0	$0
Fractional shares	Yes (all stocks/ETFs, from $1)	Yes (S&P 500 only)	ETFs only
0.00% expense ratio funds	Yes (FZROX, FZILX)	No (0.03% min)	No (0.03% min)
Free robo-advisor	Yes (<$25K)	Yes ($5K min)	No ($100 min, ~0.15%)
HSA accounts	Yes	No	No
Solo 401(k)	Yes	Yes	No
SIPC protection	$500K	$500K	$500K

Fidelity is the strongest IRA option for most investors: the broadest fractional share capability, true zero-cost index funds, and a free robo-advisor for accounts under $25,000 set it apart. The only reason to choose Schwab’s IRA over Fidelity’s is if you already bank with Schwab and want to consolidate, or if you specifically want Schwab Intelligent Portfolios’ tax-loss harvesting (available at $50,000+).

For the full Fidelity overview, see the Fidelity review. For fund choices, see Fidelity ZERO funds.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy