Opening a Roth IRA is a strong first step toward supercharging your retirement savings. While you pay taxes on Roth contributions upfront, the money grows and can be withdrawn tax-free in retirement. 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.
How to start a Roth IRA
1. Figure out if you are eligible to contribute to a Roth IRA.
Anyone can start a Roth IRA, but there are two eligibility requirements to using it:
- Income limits. How much you can contribute to your Roth IRA is based on your modified adjusted gross income (MAGI) and filing status. For 2026, the contribution limit is $7,500 ($8,600 for those age 50 and older). That contribution limit phases out and is eventually eliminated at higher incomes.
- Earned income. You need a source of earned income, defined as taxable income and wages earned through a job or self-employment, to contribute to a Roth IRA.
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. This lets you open a Roth by converting money from a traditional IRA.
2026 Roth IRA eligibility rules
| 2026 filing status | Annual Roth IRA income thresholds and phaseouts |
|---|---|
| Single, head of household or married filing separately (if you didn't live with spouse during the year) | Full contribution: Less than $153,000. Partial contribution: Between $153,000 and $168,000. No Contribution: $168,000 or more. |
| Married filing jointly or surviving spouse | Full contribution: Less than $242,000. Partial contribution: Between $242,000 and $252,000. No Contribution: $252,000 or more. |
| Married filing separately (if you lived with spouse at any time during the year) | Partial contribution: Less than $10,000. No contribution: $10,000 or more. |
» Read our detailed overview of Roth IRA contribution and income limits
2. Decide where to open a Roth 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, customer service and 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 might make sense. The advisor will offer portfolios that vary based on the amount of risk and volatility you are comfortable with. An "aggressive" option may have a higher percentage of the portfolio in stocks than a "conservative" option.
» See our list of the best Roth IRA providers
Does it matter where I open my Roth IRA?
In a word, yes. Beyond your investment choices, consider fees, customer service, and the ease of using a provider’s website or app. Try to compare providers to get a good idea of where to set up your Roth IRA.
» Not opening an account for yourself? Check out custodial Roth IRAs for children and spousal IRAs for nonworking spouses.
3. Choose how much you want to invest
How much do you need to open a Roth IRA? There’s usually no fee to open a Roth IRA, but costs and requirements can vary by provider and investments. A few brokers and robo-advisors — but not all — may require a minimum deposit to open an account.
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 abou $625 per month, or $717 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, how do you set up a Roth IRA, and what do you need to open the account?
It’s time to gather any paperwork or documentation to finish the process. Requirements vary by institution, but you’ll generally need the following information for sign-up:
- 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 using a robo-advisor, it will build and manage a diversified portfolio for you. It will also invest future contributions and make sure your overall strategy stays 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 decide how much to put in riskier investments like stock funds and how much to keep safer in bond funds or 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 from the original allocation you chose, because you won’t have a robo-advisor to do it for you.
» More guidance: How to invest your IRA
💡 Things to keep in mind when opening a Roth IRA
- If your 401(k) offers a match, consider contributing enough to get the full match before funding other accounts, such as a Roth IRA. This ensures that you make the most of your contributions and don't lose out on free money.
- A Roth IRA is just one type of IRA. Another popular one is the traditional IRA, which offers an upfront tax break. Here's more on Roth vs. traditional IRAs to help you decide which one works best for your needs.
- Roth IRA contributions are restricted by income limits. Contributing to a Roth IRA beyond the IRS limit for your income level could result in penalties. This is particularly true for those who receive bonuses or salary increases later in the year. It can be helpful to periodically monitor contributions to a Roth IRA, particularly if you've set up automatic transfers. If you have overcontributed, here's how to fix excess contributions to an 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 it to a Roth IRA. 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?
There are lots of factors to consider here, including your income, desired retirement age, monthly expenses, health status and future Social Security benefit levels. Our retirement calculator can help you gauge whether you're saving enough to ensure a comfortable retirement.
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