A tax lot is a record of the details of an acquisition of a security. Each acquisition of a security on a different date or for a different price constitutes a new tax lot. Tax lots reflect cost basis information for positions.

You may choose to enter tax lots to potentially maximize tax advantages by contributing specific securities with the most unrealized long-term capital gains.

You may specify tax lots for all asset types except cash core and money market.

Starting in 2011, National Financial Services LLC, a Fidelity Investments company, will be required to report certain cost basis and holding period to the IRS on Form 1099-B. Customers should consult their tax advisors for further information.

Important: If you do not specify tax lots, the contribution will be procesed using the account's default disposal method and cannot be adjusted at a later date.