How to Open a Roth IRA

A Roth IRA is a true gift for retirement savers. Although you pay taxes upfront on the money you put into the account, both your contributions and earnings grow tax-free — and qualified withdrawals in retirement are tax-free, too. Roth IRAs also don't require minimum distributions, so you can choose to leave the money in the account to keep growing after you've retired.

Opening a Roth IRA is a strong first step toward supercharging your retirement savings. Here's how to get started:

1. Check if you're eligible

2. Choose where to open your account

3. Decide how much to invest

4. Sign up for the account

5. Select your investments

How to start a Roth IRA

1. Figure out if you are eligible to contribute to a Roth IRA.

While most people with earned income can open a Roth IRA, how much you can contribute is based on that year's income. For 2025, the contribution limit for a Roth IRA is $7,000 for those under age 50 and $8,000 for those age 50 and older. That contribution limit phases out and is eventually eliminated at higher incomes.

If you are not eligible for a Roth IRA because your modified adjusted gross income exceeds the allowed limits, consider the backdoor Roth IRA strategy, which lets you open a Roth by converting money from a traditional IRA.

2025 Roth IRA eligibility rules

» Read our detailed overview of Roth IRA contribution and income limits

2. Decide where to open your IRA

If you're a “do-it-yourself” investor, open your Roth IRA at a brokerage.

For people who want to pick their own investments, opening a Roth IRA at an online broker makes a lot of sense. At the best brokers, you’ll find a large list of low-cost investments to choose from, including index funds and exchange-traded funds. The top brokers also offer extensive retirement planning tools, robust customer service and reasonable account minimums and fees. And you maintain complete control over how your retirement funds are invested.

If you're a “manage it for me” or hands-off investor, choose a robo-advisor.

If you’d rather have someone pick an investment portfolio for you, you can open your Roth IRA at a robo-advisor. Robo-advisors are online services that build and maintain a diversified portfolio for you. You pay a small fee for the service, but their fees are generally far lower than those of a human financial advisor.

For people who want to invest for retirement but don’t want to worry about managing their portfolio over time, a robo-advisor is an easy choice. The advisor will offer portfolios that vary based on the amount of risk you want to take, with “aggressive” ones for people who want a high percentage of their portfolio in stocks and “conservative” for people who seek a less volatile investment account.

» See our list of the best Roth IRA providers

3. Choose how much you want to invest

How much do you need to open a Roth IRA? While there generally isn’t a fee for opening a Roth IRA, there may be other costs and requirements depending on your provider and selected investments. A few brokers and robo-advisors — but not all — may require a minimum amount to open an account with them.

Think about your budget, your investing goals and how long you have to invest. If you want to max out your contribution for the year and you're eligible to contribute the full amount, that works out to about $583 per month in 2025, or $666 if you're over age 50.

» Roth IRA calculator: Find out how much your contributions could be worth

4. Gather your paperwork to open the account

So, you’ve learned all about how Roth IRAs work and even settled on a provider. Now what? It’s time to gather any paperwork or documentation you may need to set up your Roth IRA account.

Exact requirements may vary based on the financial institution, but generally, you may want to have the following information available during the sign-up process:

• An ID (such as a state driver’s license or a passport) to confirm your identity, address, and date of birth.

• A Social Security number or tax identification number.

• Proof of employment, if applicable.

• The name, addresses and dates of birth of any beneficiaries you’d like to add to the account.

• The routing and/or account numbers for the bank or investment account you’ll use to fund your Roth IRA.

Once you have all that information handy, head to the provider's website to open your Roth IRA account.

5. Pick your investments

A Roth IRA is an account type, not an automatic investment. Contributing is just the first step. If you want to build wealth over time, you also need to invest that money.

If you're a hands-off investor and you've opted to open your Roth IRA at a robo-advisor, that service will choose a diversified investment portfolio for you. It will also manage that portfolio over time, investing future contributions and making sure your overall strategy is on track. (Robo-advisors generally are registered investment advisors operating under a similar structure to human investment advisors.)

If you've opened your Roth IRA at a brokerage firm, you can get that diversification on your own by building a portfolio out of index funds and ETFs. To do that, you’ll want to decide how much of your money to put toward riskier investments, such as stock funds, and how much you want to keep relatively safe in, for example, bond funds and cash. This mix is called your asset allocation.

IRAs give you access to a large pool of investment options. Once you’ve decided on your allocation, you can select specific funds to meet that. And if you get stuck? Use a model. Check out the portfolios used by robo-advisors (often displayed on their websites), then mimic them. Be sure to rebalance the investments as they shift out of the original allocation you decided on because you won’t have robo-advisors to do it for you.

» More guidance: How to invest your IRA

Frequently asked questions

Where is the best place to open a Roth IRA?

The best place to open a Roth IRA depends on your preference for investment options, ease of use, and cost. If you'd like a hands-off approach to investing, consider a robo-advisor. If you prefer to choose your own investments, we also have a complete guide to the best investments in your IRA.

Can I transfer a 401(k) to a Roth IRA?

Yes, you can transfer funds from a 401(k) to a Roth IRA. The steps you'll have to take depend on whether your 401(k) is a traditional or Roth account. If transferring from a traditional 401(k) to a Roth IRA, you'd first roll the money into a traditional IRA, then convert to a Roth. Additionally, as you are moving pretax dollars into a Roth, which takes after-tax dollars, deferred income taxes will be due. You can learn how it all works in our 401(k) rollover guide.

How much should I save for retirement?