How to open a Roth IRA at Fidelity

You can open a Roth IRA at Fidelity online in about 10 minutes, or by phone or mail if you prefer. Fidelity will ask for your Social Security number, date of birth, employment status, and annual income during the account setup. You'll choose an account type (individual, joint, or inherited), decide how to fund it (bank transfer, check, or wire), and pick your investments from Fidelity's mutual funds, stocks, bonds, and ETFs. The account opens immediately once you complete the form, though any money you transfer takes one to three business days to arrive.

You do not need to have an existing Fidelity account to open a Roth IRA there. If you already have a brokerage account with Fidelity, you can add a Roth IRA as a separate account in the same login. The two accounts are legally distinct and have different contribution rules, so Fidelity keeps them separate in your account dashboard.

Key Takeaways

  • You can open a Roth IRA online at Fidelity.com, by calling 1-800-343-3548, or by mailing a paper form; online is fastest.
  • Fidelity will ask for your Social Security number, income, and employment status, and will verify your identity before the account opens.
  • You can fund your Roth IRA with a bank transfer, check, or wire transfer, and the money takes one to three business days to arrive.
  • Your first contribution must happen by the tax deadline (usually April 15) of the year after the year you want to claim it for, or by the actual calendar year if you're contributing for the current year.
  • Fidelity charges no account maintenance fees for Roth IRAs, though some investments within the account (like mutual funds) may have expense ratios.

Opening your account online at Fidelity.com

Go to Fidelity.com and click "Open an Account" at the top of the page. Select "Retirement" from the account type menu, then choose "Roth IRA." Fidelity will ask whether you want to open an individual Roth IRA, a spousal Roth IRA (if your spouse has little or no income), or an inherited Roth IRA (if you inherited one from a family member). Most people choose individual.

Fill in your full legal name, date of birth, Social Security number, and current address. Fidelity will ask about your employment status (employed, self-employed, retired, student, or unemployed) and your annual income. These questions help Fidelity confirm you have earned income, which is required to contribute to a Roth IRA. You'll also confirm your citizenship status and whether you're a U.S. person for tax purposes.

Next, you'll choose how to fund the account. Select "Bank Transfer" to move money from your checking or savings account (fastest), "Check" to mail a check, or "Wire Transfer" if you want to send money from another financial institution. If you choose bank transfer, Fidelity will ask for your bank's routing number and your account number. The transfer usually clears in one to three business days.

Finally, you'll review the account agreement and sign electronically. Fidelity will send you a confirmation email with your account number. Your Roth IRA is now open and ready to receive investments, even if your funding transfer hasn't arrived yet.

Opening your account by phone or mail

Call Fidelity at 1-800-343-3548 to open a Roth IRA over the phone. A representative will walk you through the same questions (name, Social Security number, income, employment status) and can answer questions about contribution limits or investment choices while you're on the call. Phone lines are open Monday through Friday, 8 a.m. to 10 p.m. Eastern time, and Saturday 8 a.m. to 6 p.m. Eastern time.

If you prefer to mail a paper form, call 1-800-343-3548 and ask for the Roth IRA account application. Fidelity will mail it to you, you'll fill it out and sign it, and mail it back with a copy of your ID and proof of address (a utility bill or bank statement dated within the last 60 days). Processing takes about two weeks from the day Fidelity receives your completed form.

Funding your Roth IRA after it opens

You can add money to your Roth IRA anytime after the account opens. Log into your Fidelity account, go to "Accounts & Trade," select your Roth IRA, and click "Deposit Funds." Choose your funding method: bank transfer (one to three business days), check (five to seven business days), or wire transfer (same day or next business day, though wire fees may apply).

You can also move money from another retirement account into your Fidelity Roth IRA through a rollover or conversion. A rollover moves money from another Roth IRA; a conversion moves money from a traditional IRA, SEP IRA, or SIMPLE IRA into your Roth IRA. Both processes require paperwork from your old provider and may have tax consequences. Call Fidelity to discuss which option fits your situation.

Choosing investments for your Roth IRA

Once money lands in your Roth IRA, you decide what to invest it in. Fidelity offers mutual funds, individual stocks, bonds, ETFs, and money market funds. If you don't choose an investment, your money will sit in a Fidelity Cash Management Account earning a small amount of interest, but it won't grow as much as it would in stocks or funds.

Fidelity's website has research tools and educational materials to help you choose. You can also call 1-800-343-3548 and speak with a representative, though they cannot tell you which specific investments to pick (that would be investment advice). Many people new to investing choose a target-date fund, which automatically shifts from stocks to bonds as you get closer to retirement.

Contribution limits and deadlines

For 2024, you can contribute up to $7,000 to your Roth IRA if you're under 50 years old, or $8,000 if you're 50 or older. These limits change each year; Fidelity will show you the current limit when you log in. You can only contribute money you earned through work (W-2 wages, self-employment income, or taxable alimony). You cannot contribute money from investments, pensions, or unemployment benefits.

You can contribute for the current year anytime during that year, or until the tax deadline of the following year (usually April 15). For example, you can contribute for 2024 anytime from January 1, 2024, through April 15, 2025. Fidelity will ask which year you're contributing for when you deposit money, so make sure you tell them the right one.

There are also income limits that determine whether you can contribute the full amount, a reduced amount, or nothing at all. These limits depend on your filing status and change each year. Fidelity will tell you whether your income affects your contribution during account setup, or you can call 1-800-343-3548 to ask.

Fees and costs

Fidelity charges no annual account maintenance fee for Roth IRAs. You will not pay a fee just for having the account open. However, some investments within your account may have costs. Fidelity's own mutual funds and ETFs typically have low expense ratios (the annual cost to own them), usually between 0.03% and 0.50% per year. Individual stocks have no expense ratio, though you may pay a small commission if you trade frequently.

If you fund your account by wire transfer, your bank may charge a wire fee (typically $15 to $30). Fidelity does not charge for incoming wire transfers. If you close your account and move money to another provider, Fidelity does not charge an outgoing transfer fee.

Frequently Asked Questions

Can I open a Roth IRA if I'm self-employed?

Yes. Self-employment income counts as earned income for Roth IRA purposes. You'll need to report your net self-employment income on your tax return. When you open the account at Fidelity, select "self-employed" as your employment status.

What if I don't have a Social Security number?

You need a Social Security number or Individual Taxpayer Identification Number (ITIN) to open a Roth IRA at Fidelity. If you have an ITIN, provide that instead when Fidelity asks for your Social Security number.

How long does it take for my bank transfer to show up?

Bank transfers typically take one to three business days. Weekends and holidays don't count as business days. If you transfer money on a Friday, it may not arrive until Tuesday. You can check the status in your Fidelity account under "Pending Transactions."

Can I open a Roth IRA for my child?

Yes, if your child has earned income from work. You would open a custodial Roth IRA in their name, and you manage it as the custodian until they turn 18 (or 21 in some states). Call Fidelity at 1-800-343-3548 to ask about custodial accounts.

What happens if I contribute more than the limit?

If you over-contribute, Fidelity will notify you. You can withdraw the excess and any earnings on it before the tax deadline to avoid a penalty. If you don't withdraw it, you'll owe a 6% excise tax on the excess amount each year it stays in the account. Contact Fidelity as soon as you realize the mistake.