Fidelity has announced a policy change to the eligible securities allowed in the Fidelity BrokerageLink® account, as part of the Delphi Salaried Retirement Savings Program (SRSP) and Delphi Personal Savings Plan (PSP).
Effective immediately, Fidelity is removing certain security types in an investment category that may generate unrelated business taxable income (UBTI). Because these investment types can create taxable events, they are inconsistent with the objective of the Delphi 401(k) plan, that is, to save in a tax-deferred manner for retirement.
If you currently hold a security of this type, you will be asked to liquidate these existing holdings. Dates have been established in which new purchases will be blocked and existing holdings will begin automatic liquidation should you not proactively redeem the investment position(s).
To discuss this change to the Delphi 401(k) plan and how this may impact your current portfolio allocation, do not hesitate to contact us toll-free at 1‑866‑444‑6246.