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DeluxeXL t1_j2ejk7q wrote

If Fidelity treats the $100 bonus as an IRA contribution after your initial $50 contribution, you can contribute $5850 more for 2022. Earnings inside the account don't matter for how much you can contribute. The amount of contribution they'll put on the Form 5498 is what ultimately matters. Unfortunately, Fidelity has been very inconsistent on whether to treat the bonus as contribution or earning.

edit: Looks like Bogleheads users confirmed that the account sign-up bonus is not considered an IRA contribution (shows up as "commission credit"), so you can contribute $5950 more for 2022. However, it will be considered pretax earning since it entered your traditional IRA.

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debbiewith2 t1_j2elll3 wrote

I believe the confusion is that their terms and conditions say you can’t get the bonus if you’ve already maxed your contribution, but it never actually counts as a contribution.

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DeluxeXL t1_j2emaer wrote

Looks like Bogleheads confirmed that the bonus from Fidelity is not considered an IRA contribution.

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Legal-Mammoth-8601 t1_j2fcp2m wrote

Makes sense. I don't think it would be considered earned income so it wouldn't be allowed as an IRA contribution.

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HFrEF OP t1_j2f4ypu wrote

Got it, so contribute $5950 more for total $6k personal contributions but pay taxes on $101.66.

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