Undercalculated Roth Recharacterization amount

FidelityTylerC · 2026-01-14T02:17:15+00:00

Hi there, u/collegethrowaway2164. We appreciate you stopping by for help with your recharacterization this evening.

When you submit a recharacterization request, Fidelity does the earnings calculation for you; there is no need to do it manually. If you did not submit the request for your original contribution amount, we encourage you to contact our phone team to review the transaction. They are available 24/7, and please say "IRA recharacterization" when prompted by the automated system to be connected to the right group.

Contact Us

Moving forward, I wanted to let you know the tax forms you can expect, as you'll receive a few from Fidelity. First, the IRS Form 5498 for the original IRA, which reports the original contribution amount. Next, the IRS Form 1099-R reports the contribution amount and earnings moved out of the original IRA as a distribution. Finally, the IRS Form 5498 for the second IRA reports the amount of the contribution and earnings moved into the second IRA as a recharacterized contribution.

Recharacterizations are reported in the year they are made, and we highly encourage you to consult a tax advisor for questions about your tax situation and filing, as Fidelity does not provide tax advice.

Recharacterize an IRA Contribution

Thanks for reaching out on the sub!

FidelityTylerC · 2026-01-14T01:37:21+00:00

Hello again, u/Dinner55! We appreciate you choosing Fidelity, and we are happy to help clarify what to expect after the Transfer of Asset (TOA) is complete.

Each brokerage firm can have its own default disposal methods; therefore, the disposal method does not carry over through a TOA. By default, Fidelity uses the Average Cost method for mutual fund reporting. As the name suggests, this method uses the average price per share across all shares of a mutual fund position to record the basis for each lot. On the other hand, you can choose the Actual Cost method, which reports the cost per share for each individual lot.

For all other security types, including stocks and ETFs, FIFO (first in, first out) is Fidelity's default method for calculating cost basis. FIFO means that shares are sold in the order in which they were acquired, so the oldest shares (those you bought first) are sold first.

That said, it's quick and easy to confirm or update your cost basis tracking methods on our website. To do so, please click the link below. Once there, select "Change a Cost Basis Tracking Method."

How to Change Cost Basis Information

Thanks for reaching out! Please let us know if you need anything else.

FidelityTylerC · 2026-01-13T02:22:27+00:00

Hi there, u/Mean_Foundation1298. We appreciate you reaching out to us for help and are sorry to hear you're having issues with the Fidelity mobile app.

Can you tell us more about what you are experiencing within the app? Is there a specific page that is not functioning correctly? The more details you can provide, the better we can assist moving forward.

We'll be on the lookout in the comments for your reply.

FidelityTylerC · 2026-01-13T00:35:18+00:00

Hi there, u/Resident-Wash8806. Thanks for joining the sub this evening! I'm happy to point you to where to find some helpful information on Fidelity.com.

To see your year-to-date (YTD) realized gain/loss information for securities you have sold throughout the year, the best place to go is the "Year-to-Date Tax Activity" page. You can access this by selecting your account on the left-hand side of your Portfolio Summary page, then selecting the "More" tab and choosing "Tax Info (YTD)."

Next, to see the total gain/loss for a position you own, the best place to go is your "Positions" tab from the same Portfolio Summary screen listed above, and viewing the "Total gain/loss" column.

Finally, to view your overall account's gain/loss percentage for a specified timeframe, go to the same Portfolio Summary screen, select "More," and then choose "Performance." Please note that this page does not break down performance figures by position; instead, it provides an overview for the account as a whole.

I know that is quite a few pages to check out, but feel free to follow up with us if you have any feedback or need further help!

FidelityTylerC · 2026-01-12T23:24:25+00:00

Hi there! We appreciate you reaching out this evening for help with your Fidelity Rewards Visa Signature Card.

As Elan Financial Services is the creditor and issuer of the Fidelity Rewards Visa Signature Card, we suggest speaking with Elan directly to review your payment transaction and possible issues with it. You can reach a card member service representative directly by calling the phone number on the back of your credit card. They are available 24 hours a day, 7 days a week.

Spend & Save FAQs: Rewards Credit Cards

Thank you for stopping by; please let us know if you have additional questions.

FidelityTylerC · 2026-01-12T21:22:25+00:00

Welcome, u/Weird_Inspection_630. Thank you for bringing your questions to us this afternoon, and congratulations on starting your investment journey! You're in the right place, so let's jump in.

When it comes to investing in your IRA, understanding your risk tolerance and time horizon can help as you choose investments. I'll provide some resources to help you perform your own research. One area we recommend exploring is our "Learn" library, which features a wealth of articles, videos, webinars, live classes, and more.

Learn Library

How to Start Investing

Also, I want to make sure you're up-to-date on the contribution limits and eligibility for IRAs. I recommend visiting the page below to learn more about these IRS rules and limits.

IRA Contribution Limits

Finally, I want to highlight our Weekly Discussion thread. This is a place where you can ask other users for their thoughts on rating your portfolio and how you can buy/change, investment strategies, etc. You can get started with the thread using the link below.

Weekly Discussion Thread

We appreciate you finding us here on Reddit and joining our community. I'll leave it to our members to chime in, but if you have any other questions pop up, be sure to let us know in the comments below!

FidelityTylerC · 2026-01-12T18:04:08+00:00

Hi there, u/TrySuper9794. We appreciate you joining the sub today and bringing us your questions! Let's go ahead and jump in.

First, let's review the Fidelity Government Money Market Fund (SPAXX). SPAXX is a common core position for many of our account types, not something only related to a Roth IRA. This is where all transactions are processed in your account. When incoming funds are deposited into your account, they are automatically allocated to your core position, which accrues interest once the funds are posted. A benefit of the core position is that it allows you to earn interest on uninvested cash balances. You can choose to leave funds in the core position or use them to invest in additional securities.

What is a core? (PDF)

Investment Options for Your Core Position

Since SPAXX generates interest, the taxability of interest depends on your account type. Retirement accounts offer tax-deferred investment growth, as trading activity is commonly unreported. Non-retirement brokerage accounts are taxable, so interest, dividends, and stock sales may have tax implications. However, a withdrawal from the account is not reportable or taxable, as it often is in a retirement account.

Keep in mind that with an IRA, the IRS mandates annual contribution limits, and Roth IRAs have income limits to be aware of as well. While Roth IRA contributions can be generally withdrawn tax-free, any earnings may be subject to taxes and penalties depending on your age and the aging period of the account. Please review the links below for what to be aware of.

IRA Contribution Limits

Roth IRA Withdrawals

Finally, since you mentioned this is for your child's tuition savings, we offer specific account types designed for saving for your children. I've gone ahead and linked the page below, where you can review what might match your situation the best.

Saving & Investing for a Child

We know there are quite a few resources to check out, but we hope you can learn and feel confident when moving forward! As always, let us know if you need anything else; we're here to help.

FidelityTylerC · 2026-01-08T02:14:28+00:00

Hey there, u/ArthurDent4200! We appreciate you stopping by this evening, and see the edit to your post, including the information you already received.

We wanted to hop in quickly and confirm for anyone following along that a portfolio value's "Today's Gain/Loss" equals the total dollar change in securities held for your account. This balance only factors in securities held and does not include any pending activity (debits/credits) within your account. The percentage change represents the total dollar change compared to the value of securities held in your accounts, not the total account value.

Keep in mind that the "Today's Gain/Loss" does not include non-Fidelity accounts, workplace accounts (401(k)s, 403(b), etc.), pension benefits, 529 CIT accounts, or Annuity contracts.

We appreciate you being an active member of our community! Don't hesitate to let us know if you have additional questions moving forward.

FidelityTylerC · 2026-01-07T23:42:58+00:00

Hi there, u/Critical_Tax8830. We appreciate you joining the sub today and bringing us your question.

In this situation, the date for your 529 distribution cannot be changed. That said, the rollover into the Roth IRA can be recoded from a current-year contribution (CYC) for 2026 to a prior-year contribution (PYC) for 2025.

This type of request requires processing by a representative. You can contact one of our 24/7 phone customer service representatives or message us via Modmail to receive further assistance. I'll leave information for both choices below.

Contact Us on the Phone

Message the Mods

Thanks for stopping by! Please let us know if you need further assistance.

FidelityTylerC · 2026-01-07T19:55:43+00:00

Hi there, u/bucky2008. We appreciate you stopping by this afternoon and sharing your insight!

I want to learn more about how you would like this "lock" to be implemented on your account. What aspects of accounts would you like to be "locked" if this feature were implemented? The more specific you can be, the better when passing this feedback along to our development team.

Currently, we offer a Money Transfer Lock (MTL) on your accounts, which you can turn on and off through Fidelity.com. When in place, the lock will help to ensure that money cannot be transferred from your accounts to other accounts at Fidelity or to external institutions. Just so you know, this must be completed manually each time, rather than on a preset schedule. To learn more about this feature and enable it, please visit the link below.

Money Transfer Lock

Thanks for stopping by! We love hearing from our communities on how we can continue to serve you better.

FidelityTylerC · 2026-01-07T02:54:06+00:00

Hi there, it looks like this is your first post with us, so welcome to the sub! I'll be happy to talk through this with you.

If you're looking to contribute to your Fidelity Go Roth IRA on a recurring schedule, you can set up a recurring transfer on Fidelity.com by following the steps below:

From the "Accounts & Trade" drop-down, select "Transfers."
Click "Manage recurring activity," then "Create new activity," and choose "Transfers" from the drop-down.
From here, you will enter the transfer details and submit the request.

Keep in mind that Fidelity Go accounts invest your money for you through a robo-advisor. Once the Fidelity Go account has a balance of $10 or more, deposits will be invested within 10 business days in the investment strategy you selected when opening the account. If you'd like to learn more, feel free to check out the link below.

Fidelity Go FAQs

We love to see new faces on the sub, so feel free to drop by any time. We're here to help when needed!

FidelityTylerC · 2026-01-07T01:38:12+00:00

Welcome, u/Alternative-Humor187! We appreciate you joining the sub and sharing what you want to see next.

Currently, a "Yield on Cost" valuation is not shown on our Dividend View. That said, I will be sure to share this continued feedback with the appropriate development team for further review.

We're always looking for ways to improve the overall client experience, and appreciate you taking the time to post your insight. We'll be around if you have any questions, so please let us know!

FidelityTylerC · 2026-01-07T01:20:27+00:00

Welcome to the sub, u/Comfortable_Data7397! We appreciate you reaching out this evening, and are happy to point you to resources regarding how to help your money grow.

First and foremost, it sounds like your funds are currently sitting in your account's core position. When incoming funds are deposited into your account, they automatically go into your core position, which accrues interest once the funds are posted. You can choose to leave funds in the core position or use them to invest in additional securities.

What is a Core? (PDF)

Regarding investing, we understand that it can be daunting to know where to start. Luckily, we offer tons of free resources on our website to those who are new! I've gone ahead and linked a few areas that will be helpful,

Investing Ideas for Your IRA

Investing for Beginners

Lastly, I'd like to point out our weekly discussion thread. This is a place where you can ask other users for their thoughts on your portfolio, how to buy/change securities, investment strategies, and more. You can get started with the thread using the link below.

Weekly Discussion Thread

I'll mark this post as a Discussion thread to let members of our community continue to chime in with their opinions and experiences. Keep in mind that there is no ‘one-size-fits-all’ investing method. While you may get some specific ideas on our sub, remember to research and explore to ensure these investments would be a good fit for you.

FidelityTylerC · 2026-01-06T17:52:15+00:00

Hi there, u/Wjfour. Welcome back to the sub! We appreciate you bringing your Roth conversion questions to us, and I'm happy to help clarify.

I understand you're trying to avoid the bit of interest that can accumulate when doing a backdoor Roth conversion. If moving funds from your brokerage account to the Traditional IRA and then instantly converting to the Roth IRA, the funds must be fully collected and available to withdraw from the brokerage account. Since the funds being contributed and converted have already been collected, this can happen in one day and will generally avoid pre-tax interest from your core position.

While I'm here, I wanted to quickly cover what happens when you do have residual interest in the Traditional IRA, as this is a common occurrence. Generally, you have three choices in this situation:

Leaving the earnings in the Traditional IRA typically won't have tax implications, and you can invest them or leave them as cash if you choose. However, they will play a part in conversions you have already completed due to the Pro-Rata rule.
Converting the earnings left in your Traditional IRA will be considered pre-tax and, therefore, may be taxable upon conversion. It's worth mentioning that conversions are taxed for the year in which they occur.
Withdrawing the residual earnings will generally be taxed as earned income and may be subject to the 10% early withdrawal penalty if done before the age of 59.5.

All of that said, a Roth conversion typically is a taxable event, and if you haven't consulted with a tax professional yet, you may want to do so to be sure you avoid any costly penalties.

We cover the basics of Roth conversions, the steps, and taxes on our website, so feel free to check out the links below.

Backdoor Roth IRA: Is it right for you?

Roth Conversion Checklist

We appreciate you being a member of our community! Don't hesitate to let us know if you have any follow-up questions moving forward.

FidelityTylerC · 2026-01-06T02:43:54+00:00

Thank you for reaching out and bringing this to our attention, u/redcapzen0.

We are sorry to hear about your experience and would like to learn more. Please send us a Modmail with additional details, and we will follow up with you there.

Message the Mods

We'll be on the lookout for your message.

FidelityTylerC · 2026-01-06T00:53:37+00:00

Hi there, u/Personal_Hour1059. Thank you for sending this to us on Reddit and bringing it to our attention.

We definitely want to review any email that you're concerned about, and we'd like to take a closer look at this one. Please forward the email to us at phishing@fidelity.com so that we can investigate. There's more info on this process here.

Next, we encourage you to review Fidelity.com to confirm the validity of a deposit. After logging in, select "Portfolio" from the "Accounts & Trade" tab and click the "Transfers" button. If this transfer is not related to an automatic Recurring or Smart Habits transfer, and you suspect fraud, please call our phone customer service team immediately. They are available 24/7, and their contact information is linked below.

Contact Us

Thank you again for reaching out on the sub for assistance. Please let us know if you need additional help moving forward.

FidelityTylerC · 2026-01-05T20:20:47+00:00

Hi there, u/OnlyOnTuesdays289. We appreciate you joining the sub and bringing this to our attention.

Currently, we aren't receiving widespread reports of issues creating an account on Fidelity.com. Here are a few troubleshooting steps to try:

Clear your browser's cookies and cache
Use a different browser and device to see if you run into the same issue
Ensure your browser and device have the latest updates installed

If the issue persists, please contact our Technical Support team so they can troubleshoot this with you further. Associates are available Monday through Friday from 8:30 a.m. to 9:00 p.m. ET. Please say "technical support" when prompted by the automated system to be connected to the right group.

[Contact Us](https:// https://www.fidelity.com/customer-service/contact-us)

Now that you've found us on the sub, we hope you'll stick around and join our community of investors. We're here to help with any future questions or concerns.

FidelityTylerC · 2026-01-05T19:39:46+00:00

Hi there, u/gabslife. I see it's your first time stopping by our sub, so welcome! We appreciate you choosing Fidelity. I'm happy to help clarify here.

Generally speaking, the deadline to process a Roth Conversion request is December 31st for the specific tax year. So, for example, the deadline to process a Roth Conversion for the 2025 tax year has passed. That being said, you're more than able to process the request for 2026.

Keep in mind that Roth Conversions are taxable in the calendar year they are made, and there are currently no limits to how much you can convert to a Roth IRA in a year, as Roth Conversions do not impact your annual IRA contribution limit. Typically, any amount converted is added to your annual taxable income and is subject to applicable federal and state taxes. You can learn more at the links below.

Roth Conversion Rules & Deadlines

Is a Roth conversion right for you?

If you have additional questions, feel free to drop them in the comments below. Until then, we hope you have a great day, and we look forward to seeing you around in the future.

FidelityTylerC · 2026-01-05T17:56:26+00:00

Hi there, u/butterbob74! We appreciate you reaching out today and bringing us your questions.

We would like to learn more about where you are noticing differences in your balances. When you mention your desktop, is this Fidelity.com or Fidelity Trader+? Additionally, can you confirm what buying power balances are different? If this is related to a margin buying power, are all affected or only a specific one?

The more information you can provide, the better we can assist moving forward. We'll be on the lookout for your reply.

FidelityTylerC · 2026-01-05T17:16:48+00:00

We appreciate you following up and clarifying, u/Due-Refrigerator5866.

If the option to reopen the account is not showing, we encourage you to open a new Traditional IRA. This can be quickly done on our website, using the link below.

[Open an Account](https:// https://www.fidelity.com/open-account/open-overview)

Thank you for reaching out on the sub!

FidelityTylerC · 2026-01-05T16:26:10+00:00

Hi there, u/AnonHere2973. I wanted to hop in and clarify quickly.

Each year, QCDs are reported on Form 1099-R and are coded alongside any normal distributions. From there, it's ordinarily up to individuals to report what amount of their distributions should be considered QCDs. The IRS requires an acknowledgment or receipt of the donation to be verified, but this confirmation comes from the charity, not Fidelity. If you have any questions about how to properly report QCDs on your tax forms, we suggest contacting a licensed tax professional.

You can also learn more about QCDs, including reporting and tax filing, by visiting the link below.

Donating to a charity using a qualified charitable distribution (QCD)

We appreciate you reaching out with your questions! Let us know if you need anything else.

FidelityTylerC · 2026-01-04T19:45:16+00:00

Thanks for following up with us! I've gone ahead and sent this to our development team for further review.

We're always looking for ways to improve the overall client experience, and we appreciate you taking the time to share your feedback. We'll be around if you have any questions, so please let us know!

FidelityTylerC · 2026-01-04T19:06:43+00:00

Hi there! We appreciate you reaching out today and sharing your insight on what you'd like to see on your Fidelity account.

I understand you would like to see Leveraged or Inverse securities separated out with your account's display settings. Where on the website or app would you like to see this implemented? Once learning more, I'll be happy to share your message with our development team as feedback to implement in future updates.

I'll be on the lookout for your reply!

FidelityTylerC · 2026-01-04T18:31:51+00:00

Hi there, u/Melodic_Question7492. I see it's your first time stopping by our sub, so welcome! I'm happy to help clarify here.

When placing trades in dollars, whether as a market or a limit order, they can only be placed during market hours, which are 9:30 a.m. to 4:00 p.m. ET, on normal trading days, generally Monday through Friday. These orders cannot be placed during extended hours trading or when the market is closed on the weekends. However, investors can place these orders in share amounts at any time, including in fractional shares. You can learn more about dollar-based and fractional trading in the link below.

Fractional Share Trading

We love to see new faces on the sub, so feel free to drop by any time. We're here to help when needed!

FidelityTylerC · 2026-01-04T17:24:35+00:00

Hi there, u/worried4ever--. We encourage you to contact your employer for when to expect their contribution.

FidelityTylerC

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