A Roth IRA is one of the best financial accounts you can have. Your money grows tax-free. Your withdrawals in retirement are tax-free. And you can withdraw your contributions (not earnings) at any time without penalty. Here’s exactly how to open one.
Who can open a Roth IRA
You can contribute to a Roth IRA if you have earned income (wages, salary, freelance income) and your income is below the phase-out threshold. For 2025, the ability to contribute starts phasing out at $150,000 for single filers and $236,000 for married filing jointly. Under those limits, you’re eligible.
The contribution limit is $7,000/year (or $8,000 if you’re 50+). You can contribute the full amount or less — even $50/month consistently beats doing nothing.
Where to open a Roth IRA
- Fidelity. No minimums, excellent zero-expense-ratio index funds, great interface. Best overall for beginners.
- Vanguard. The original index fund company. No minimums for ETFs, long-term focused.
- Charles Schwab. No minimums, strong tools, good customer service.
Avoid using a bank for your IRA — their investment options are limited and fees are typically higher.
How to open the account — step by step
- Go to Fidelity.com (or your chosen provider) and click “Open an Account”
- Select “Roth IRA”
- Fill in your personal information — name, address, Social Security number, employment info
- Link your bank account for funding
- Fund the account — transfer however much you want to start with
- Choose your investments (see below)
The whole process takes about 15 minutes.
What to invest in once it’s open
For most beginners, one of these two options is all you need:
- A target-date fund. Pick the one closest to your expected retirement year (e.g., Fidelity Freedom 2060). It automatically adjusts its allocation from aggressive to conservative as you approach retirement. Zero decisions required.
- A total market index fund. FZROX at Fidelity (zero expense ratio) or VTI at Vanguard. Covers the entire US stock market. Buy it and add more regularly.
Don’t leave the money sitting as cash inside the account. Opening the account is step one — investing the money is step two. Both are required.