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A Roth individual retirement account (IRA) is a type of tax-advantaged retirement savings vehicle that allows you to make tax-free qualified withdrawals at retirement. You can open a Roth IRA online through various banks and brokerage firms and invest your money in virtually the entire securities universe, including stocks, bonds, mutual funds, exchange-traded funds (ETFs) and more.
Here’s how to open and start saving for retirement through one of these valuable investment accounts.
How to start a Roth IRA in 4 steps
You can start saving and investing for retirement through a Roth IRA now by following these steps:
1. Determine your eligibility
To contribute to a Roth IRA, your Modified Adjusted Gross Income (MAGI) can’t exceed certain limits. To contribute the full $7,500 — $8,600 if you’re 50 or older — for tax year 2026, single filers must have a MAGI of $153,000 or less. Married couples filing jointly must have a MAGI of $242,000 or less.(1)
The Internal Revenue Service (IRS) phases out contributions as your MAGI exceeds these limits until you reach a point where you can no longer contribute to a Roth IRA. Single filers with a MAGI over $168,000 and married couples filing jointly with a MAGI over $252,000 can’t contribute at all to a Roth IRA. Between these thresholds, you’re eligible for a partial contribution.
2. Choose a provider to open your Roth IRA
You can open your Roth IRA through various banks, brokerage firms, credit unions and other financial institutions. Be sure to compare your options, as different IRA custodians charge different fees and offer different investment options and investing tools.
Hands-off investors might consider opening a Roth IRA with a financial advisor or a robo-advisor. Advisory services can recommend a personalized investment mix and then manage your portfolio.
Every year, the IRS sets contribution limits for IRAs. For tax year 2026, the total you can contribute across all your traditional IRAs and Roth IRAs is $7,500 if you’re under age 50 or $8,600 if you’re age 50 or older.(1)
While the amount you can contribute depends on your specific circumstances, leveraging your Roth IRA to its fullest potential could be a wise strategy for retirement planning.
Pro tip
A growing number of brokers are offering IRA contribution matches, which can help you optimize your IRA contributions. For example, Robinhood offers a 3% match on every dollar you contribute to your IRA with a Robinhood Gold subscription, or 1% without.
The probability of a member receiving $1,000 is 0.028%. If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Members must fund their account with a minimum of $50.00 to qualify. The probability percentage is subject to decrease. Members are only eligible for the Stock Award promotion upon opening their first brokerage account; subsequent cash brokerage accounts are ineligible for the promo, including for members with multiple accounts.
Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link See full terms and For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions.
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers
Tax-loss harvesting technology helps maximize your after-tax returns
Customize your portfolio based on sectors you care about or get expert recommendations for a diversified ETF portfolio
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Benefits of a Roth IRA
Roth IRAs offer many perks. Here are some key Roth IRA benefits:
Earnings grow tax-free. The interest and investment earnings in a Roth IRA grow tax-free.
No mandatory withdrawals. Unlike with a traditional IRA, you are not required to make mandatory withdrawals starting at age 73 (75 for those born in 1960 or later).
Tax-free withdrawals in retirement. Make tax-free withdrawals as long as you’re at least 59.5 years old and at least five years have passed since the tax year you made your first contribution.
Various investment choices. Nearly every asset is legally permissible inside a Roth IRA, except life insurance and collectibles.(2) Invest in everything from stocks and mutual funds to alternative investments. Available investment options depend on what the IRA custodian offers.
Flexible access to contributions. You can withdraw contributions — but not investment earnings — from a Roth IRA any time penalty- and tax-free. This is because contributions to a Roth IRA are made on an after-tax basis, and the IRS can’t tax it twice.
How to open a Roth IRA for a minor
If you’re wondering how old you have to be to open a Roth IRA, there’s no age limit. You can open and manage a custodial Roth IRA for a child age 17 or under as long as they have earned income. As the account custodian, you’d manage the Roth IRA until the child reaches the age of majority, which is 18 to 25, depending on the state.
Here’s how to open a Roth IRA for a child:
Choose a broker that offers custodial IRAs. Not all brokers offer custodial IRAs. Some examples of brokers that offer these account types are Fidelity Investments, Charles Schwab and E*TRADE. But be sure to research your options. Some brokers offer wider investment options, lower fees and even bonuses for switching brokerage accounts.
Apply and open an account. To complete your application, you’ll need to provide some personal information about yourself and the minor. Make sure you have Social Security numbers for you and the child, your government-issued ID and proof of income for the child.
Choose your investments. Since you’ll manage the account until the child reaches the age of majority, you’ll need to choose the investments.
Bottom line
A Roth IRA allows you to invest with tax-free growth and withdraw money tax-free at retirement. However, some brokerages may offer Roth IRAs better suited for you than others. Compare IRA providers to find the best Roth IRA for your needs.
Frequently asked questions
Most Roth IRA providers don't require account opening minimums.
Beginners may want to start by researching different Roth IRA providers to see which offer the features that suit them. Watch for any account management fees they may charge, the types of investments you can choose and any digital tools that can help you analyze investments and visualize your retirement plan.
Adults can open a Roth IRA on their own. Minors will need an adult to open and manage the account on their behalf.
Roth IRA growth depends on variables like your contribution amounts and the performance of your investments.
Javier Simon is a freelance finance writer at Finder and a certified educator in personal finance (CEPF).
He’s featured on NerdWallet, Bankrate, Yahoo Finance and Fox Business, where he’s shared his expertise on personal finance topics, such as investing, retirement planning, taxes, budgeting and savings.
He has also covered breaking news, such as student loan forgiveness initiatives, the housing market and inflation’s impact on consumers’ wallets.
His passion is turning complex financial concepts into actionable content that can help people improve their financial lives.
Javier holds a bachelor’s degree in multimedia journalism from SUNY Plattsburgh.
See full bio
Learn how Roth IRAs work and who qualifies to open one.
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