Opening a Roth IRA account at Fidelity

You open a Roth IRA at Fidelity by going to their website, selecting "Open an Account," and choosing the Roth IRA option. Fidelity will ask for your Social Security number, date of birth, employment status, and current address. The process takes about 10 minutes online, and your account opens the same day.

You do not need to fund the account immediately. Once it is open, you can transfer money in whenever you are ready. Fidelity does not charge an account opening fee or annual maintenance fee for Roth IRAs.

Key Takeaways

  • You can open a Roth IRA at Fidelity online in about 10 minutes with your Social Security number and basic personal information.
  • After your account opens, you choose how to invest the money — stocks, mutual funds, bonds, or money market funds — or leave it in cash while you decide.
  • You can fund your account by linking a bank account for transfers, mailing a check, or rolling over money from another retirement account.
  • Fidelity charges no account fees, but you pay transaction fees only if you trade individual stocks; mutual funds and ETFs trade commission-free.
  • The amount you can contribute each year is set by the IRS and depends on your age and income; Fidelity will not let you exceed the limit.

Funding your account: transfer, check, or rollover

The most common way to fund a Roth IRA at Fidelity is a direct transfer from your bank account. During account setup, Fidelity asks if you want to link a checking or savings account. You provide your bank's routing number and your account number, and Fidelity verifies the connection with two small deposits. Once verified, you can transfer money whenever you want.

If you prefer not to link your bank account, you can mail a check to Fidelity. The check should be made payable to "Fidelity," and you include a deposit slip with your account number. Fidelity will mail you the deposit slip when your account opens, or you can request one by phone.

If you already have a Roth IRA or other retirement account at another institution, you can roll that money into your Fidelity Roth IRA. A rollover moves the full balance from the old account to Fidelity without tax consequences. Fidelity handles most of the paperwork; you contact your old provider and ask them to send the money directly to Fidelity (called a "direct rollover"). This usually takes one to two weeks.

Choosing how to invest your money

Once money is in your Fidelity Roth IRA, you decide what to invest it in. Fidelity offers thousands of options: individual stocks, mutual funds, exchange-traded funds (ETFs), bonds, and money market funds. You do not have to invest immediately. Money can sit in a cash sweep account earning a small amount of interest while you research.

If you are new to investing, Fidelity's target-date funds are a common starting point. You choose a fund based on the year you plan to retire — for example, "Fidelity Freedom Index 2050" — and the fund automatically shifts from stocks to bonds as you get closer to retirement. You buy the fund the same way you would buy any mutual fund: log into your account, search for the fund name, enter the dollar amount, and confirm.

Individual stocks and ETFs trade commission-free at Fidelity. Mutual funds also trade commission-free. You pay a transaction fee only if you buy or sell individual stocks through Fidelity's phone line or in person at a branch, not online.

Understanding contribution limits and income restrictions

The IRS sets a yearly limit on how much you can put into a Roth IRA. For 2024, the limit is $7,000 if you are under 50, and $8,000 if you are 50 or older. These limits change yearly. Fidelity tracks your contributions and will not let you deposit more than the annual limit.

You can only contribute to a Roth IRA if your income is below a certain threshold. The threshold depends on your filing status and changes each year. For 2024, if you file as single, you cannot contribute if your income is $161,000 or more. If you file as married filing jointly, the limit is $240,000. Fidelity does not verify your income at the time you open the account, but you are responsible for making sure you stay within the limit. If you over-contribute, you can withdraw the excess and any earnings on it before your tax return is due to avoid penalties.

What happens to your money after you invest it

Once you buy a mutual fund, stock, or ETF in your Roth IRA, Fidelity holds it in your account. You can log in anytime to see the current value. If the investment pays dividends or interest, that money stays in your account and is reinvested automatically unless you change the setting.

You can buy and sell investments within your Roth IRA as often as you want without tax consequences. Unlike a regular brokerage account, trades inside a Roth IRA do not trigger capital gains taxes. You can also transfer money between investments — for example, selling a mutual fund and buying an ETF — without any tax impact.

You cannot withdraw your contributions before age 59½ without a penalty, with a few exceptions (first-time home purchase, disability, medical expenses). Earnings on your contributions cannot be withdrawn penalty-free until age 59½. Fidelity will calculate and report any penalties if you do withdraw early.

Managing your account and getting help

Fidelity lets you manage your Roth IRA entirely online through their website or mobile app. You can view your balance, buy and sell investments, transfer money in, and download statements. You can also set up automatic monthly contributions if you want to invest a fixed amount each month.

If you have questions about investing or how a specific fund works, Fidelity offers phone support at no charge. You can also visit a Fidelity branch in person if one is near you. Fidelity does not charge for investment advice on how to allocate your Roth IRA, though they do offer paid advisory services if you want ongoing management.

Frequently Asked Questions

Can I open a Roth IRA at Fidelity if I have one somewhere else?

Yes. You can have multiple Roth IRAs at different institutions. However, your total contributions across all Roth IRAs cannot exceed the yearly IRS limit. If you have a Roth IRA at another bank and open one at Fidelity, you must track your total contributions to both accounts to stay within the limit.

What is the minimum amount I need to open a Roth IRA at Fidelity?

Fidelity does not require a minimum deposit to open a Roth IRA. You can open the account with zero dollars and fund it later. Some of Fidelity's mutual funds do have minimum investments — usually $2,500 — but you can buy ETFs or stocks with any amount.

How long does it take for money to show up in my Roth IRA after I transfer it?

Bank transfers usually arrive within one to three business days. Checks take longer — typically five to seven business days from the time Fidelity receives them. Direct rollovers from another retirement account usually take one to two weeks because the old provider has to process the request and send the money to Fidelity.

Can I invest in cryptocurrency or real estate in a Fidelity Roth IRA?

Fidelity does not offer cryptocurrency or real estate investments within a Roth IRA. You can invest in stocks, bonds, mutual funds, ETFs, and money market funds. Some retirement account custodians do offer self-directed IRAs that allow alternative investments, but Fidelity is not one of them.

What happens if I contribute too much to my Roth IRA?

If you over-contribute, you can withdraw the excess and any earnings on it before your tax return is due without penalty. After that deadline, you owe a 6% penalty tax each year the excess sits in the account. Fidelity will not prevent you from over-contributing, so you are responsible for tracking your total contributions across all Roth IRAs.