Fidelity Investments / retirement fund contributions

United States Review updated:

On April l5, 2010 I mailed via US Mail an IRA contribution to Fidelity Investments for the 2009 tax year. The deposit slip and check both indicated the IRA contribution was to be used for the 2009 tax year. Fidelity received the IRA contribution on 4/20/2010 and ignoring the letter' postmark, the tax year designation on the check and Fidelity deposit form and deposited the IRA contribution for the the 2010 tax year because it arrived one day after their arbitrary receipt cutoff (4/19/2010). As a result I have needed to file an Amended return with both the federal government and the state.

My complaint is as follows:

(1)Fidelity failed to disclose in any of their written or online literature that an arbitrary cutoff date of 4/19/2010 was in effect. If I had know this was the case I would have electronically transferred the funds or sent the contribution registered mail where I could have provided proof of postmark.

(2)Fidelity deposited the IRA contribution clearly designated for the 2009 tax year into the 2010 tax year. They did so without notifying me of the issue. If I had not been carefully reviewing my accounts for unrelated issues, I might not have caught the issue until the following tax year or at a minimum would have caught it later. Further, I am unable to withdraw the 2010 IRA contribution without fund redemption fees, since the money is already invested in funds with 90 day redemption fees.

In summary, the Fidelity cutoff date is arbitrary and harsh with respect to US Mail. Further they have not fairly disclosed the existence of the cutoff date, nor did they act properly in depositing the account for the 2010 tax year when they were specifically asked to deposit it for 2009. Finally, they admitted that while the postmark date is controlling with respect to a 2009 contribution (must be postmarked by 4/15/2009), they deliberately fail to check the actual postmark date.

The above practices are egregious and place burdens on everyday tax payers and in my case, in addition to an amended return, will result in IRS penalty fees.

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  • Tr
      10th of Aug, 2010

    People can't be held accountable for your ignorance. Maybe by learning to not procrastinate you could get a lot furthur than you are now. I don't understand how poeple can always complain about service from any type of company when you wait for the last minute to do anything. You sound like the kind of person that would expect the world to bend over backward and have unrealistic expectations. Best of luck moving forward. And by the way, the compliant you have is irrevelant because it is an irs compliant, belive it or not, investment companies can't change tax laws. best of luck

    0 Votes
  • Be
      19th of Mar, 2012

    Change to Fidelity

    0 Votes

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