FIA Fidelity Amex

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Jul 27, 2014 10:48 pm

In terms of tax consequences, the type of Fidelity account into which you deposit your cash back (non-retirement, IRA, or 529) should not matter. Cash back is a separate issue from IRAs and 529s. Any of the eligible Fidelity accounts can be funded from a checking account. Which dollar is which doesn't matter when it comes to contributions. It's not like a payroll deduction for a 401(k) where the money has to comes right out a paycheck.

On the other hand, when it comes to rollovers of IRAs, which dollar is which is critically important. The funds have to go from one trustee to another. For rollovers of 529 plans, you can do a direct plan-to-plan rollover or indirectly (by getting a check) so long as you get the funds to the new 529 plan within 60 days.

There are, of course, tax implications with funding an IRA or 529 plan - but they are the same implications there would be if you had just deposited money through a checking account. Again, cash back is a different matter - one of having a lower purchase price for the things you buy with the card.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when


MemberSince99
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Postby MemberSince99 » Mon Jul 28, 2014 6:28 am

If you are depositing money through a checking account, I would hope you aren't getting taxed on THAT money but only the profits on your way back out or you would be paying double taxes on the money deposited, which is likely going to mean no matter your rate of return you are losing money, probably a lot of it.


Not sure how that would be kept track of, but that would discourage me from putting money from my checking into that just on the notion that it could be taxed again.

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CarefulBuilder14
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Postby CarefulBuilder14 » Mon Jul 28, 2014 10:56 am

MemberSince99 wrote:If you are depositing money through a checking account, I would hope you aren't getting taxed on THAT money but only the profits on your way back out or you would be paying double taxes on the money deposited, which is likely going to mean no matter your rate of return you are losing money, probably a lot of it.


Not sure how that would be kept track of, but that would discourage me from putting money from my checking into that just on the notion that it could be taxed again.


If you spend $100,000 on a card and get, say, $3,000 cash back, then deposit the $3,000 to a non-retirement Fidelity account and buy $3,000 of securities, then your tax basis in those securities is $3,000. It would be the same if you wrote a check. The tax basis would technically be the same for an IRA and 529 account, but with those accounts the tax basis itself doesn't matter - just the amounts contributed and withdrawn.

Cash back is just cash. It is a rebate that counts as a reduction in the price you pay buying stuff. It is like buying $1,000 worth of stuff and having a cashier hand you $30 - there is just a little delay or a month or two involved. Maybe you could compare it to mailing in a manufacturer's rebate.

I'd rather not get into every possible tax situation a person could get into with a Roth IRA, Traditional IRA, or 529 plan. My point is that with those kinds of Fidelity accounts, the source of the cash for contributions doesn't matter.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

luvbullmarkets
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Postby luvbullmarkets » Mon Jul 28, 2014 11:38 pm

I had to stop myself from applying for this card after reading numerous complaints about the Fidelity AMEX underwritten by FIA cards. Everything from frequent declines due to overstrict fraud monitoring to very poor customer service.

I really wish Charles Schwab would bring back the 2% cash back Visa Card. Or perhaps another brokerage such as E*Trade or TD Ameritrade will join the party and offer a 2% cash back as well.
Amex EveryDay, Amex BCE , Barclaycard Arrival+ WEMC, CSP Visa Signature, Discover it, Wells Fargo Propel 365 Amex

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Darrvao777
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Postby Darrvao777 » Tue Jul 29, 2014 11:51 am

luvbullmarkets wrote:I had to stop myself from applying for this card after reading numerous complaints about the Fidelity AMEX underwritten by FIA cards. Everything from frequent declines due to overstrict fraud monitoring to very poor customer service.

I really wish Charles Schwab would bring back the 2% cash back Visa Card. Or perhaps another brokerage such as E*Trade or TD Ameritrade will join the party and offer a 2% cash back as well.


Service was pretty good the one time they denied my card for fraud protection

I'm guessing actual amex service is probably going to be better than them though in the end
- Amex Platinum (primary)
- Citi Double Cash (backup)
- Chase Sapphire Reserve (just to get the bonus, closing in 2017)



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