How to Open a Roth IRA: Step-by-Step Guide for 2026

Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

A Roth IRA is one of the best retirement accounts you can have. You invest after-tax money. Your savings grow tax-free. When you retire, you pay no taxes on withdrawals. That is a huge advantage over a 401(k) or traditional IRA.

Here is how to open one — step by step.

Step 1: Check If You Are Eligible

To open a Roth IRA, you need earned income. That means wages, salary, self-employment income, or alimony. Passive income like dividends or rental income does not count.

You also need to be within the income limits:

Rates as of May 2026. Rates change frequently. Check with each institution for current APY before opening an account.

Step 2: Know the Contribution Limits

In 2026, you can contribute up to $7,000 per year to a Roth IRA. If you are 50 or older, you can contribute $8,000. You can contribute any time up to the tax filing deadline (usually April 15 of the following year).

Step 3: Choose Where to Open Your Roth IRA

Pick a brokerage with no fees and no minimum. Here are the top choices:

Fidelity — Best Overall

Fidelity has no account minimum, no trading fees, and offers zero-expense-ratio index funds. Great education tools. Best for most beginners.

Vanguard — Best for Low Costs Long-Term

Vanguard invented the index fund. Their ETFs like VTI and VOO have some of the lowest expense ratios in the industry. The app is not as slick as Fidelity, but the investing options are excellent.

Charles Schwab — Best for Customer Service

Schwab has no minimum, no fees, and offers live phone support. Great if you want to talk to a real person.

Step 4: Open the Account

Go to the brokerage’s website. Click “Open an Account.” Select Roth IRA. You will need:

• Your Social Security number
• A government-issued photo ID
• Your bank account and routing number (for your initial deposit)

Most applications take 10–15 minutes. The account is usually ready within 1 business day.

Step 5: Fund Your Account

Link your checking or savings account to your Roth IRA. Transfer money in. You can start with as little as $1 at Fidelity. Set up automatic monthly contributions so you invest consistently without thinking about it.

Step 6: Choose What to Invest In

Once your money is in the account, you need to invest it. Just having cash in a Roth IRA does not help it grow. For beginners, the simplest option is a total market index fund:

• Fidelity ZERO Total Market Index Fund (FZROX) — 0% expense ratio
• Vanguard Total Stock Market ETF (VTI) — 0.03% expense ratio
• Schwab Total Stock Market Index Fund (SWTSX) — 0.03% expense ratio

What Is the Backdoor Roth?

If you earn too much to contribute directly to a Roth IRA, you can use a backdoor Roth. You first contribute to a traditional IRA (no income limits). Then you convert it to a Roth. This is legal and commonly used by high earners. Talk to a tax advisor before doing this, especially if you have other traditional IRA money.

Roth IRA vs Traditional IRA

The main difference: Roth IRA contributions are made with after-tax money (no tax break now, but tax-free later). Traditional IRA contributions may be tax-deductible now but you pay taxes on withdrawals in retirement. Read our full Roth vs Traditional IRA comparison.

Once you have your Roth IRA set up, learn about how much you should have saved for retirement by age. Also check our guide on best investment apps for beginners.