How to open a Fidelity Roth IRA

You can open a Fidelity Roth IRA online in about 10 minutes, by phone, or in person at a Fidelity branch. The online route is fastest: go to fidelity.com, select "Open an Account," choose "Roth IRA," and answer questions about your employment status, income, and citizenship. Fidelity will verify your identity using your Social Security number and date of birth. Once approved — usually the same day — you can fund the account and begin investing.

You do not need to have an existing Fidelity account to open a Roth IRA there. If you prefer to speak with someone, call 1-800-FIDELITY (1-800-343-3548) and a representative will walk you through the process. Some people choose the phone route because they have questions about which investments to hold inside the account, though Fidelity representatives can only describe options, not recommend specific ones.

Key Takeaways

  • You can open a Fidelity Roth IRA online, by phone at 1-800-343-3548, or at a local Fidelity branch without needing an existing account.
  • The online application takes about 10 minutes and requires your Social Security number, date of birth, employment status, and income information.
  • Fidelity typically approves accounts the same day, and you can fund and invest immediately after approval.
  • You must have earned income in the year you contribute, and your income cannot exceed the IRS limit for that year (limits vary by filing status and change annually).
  • You can fund your account by linking a bank account, transferring from another brokerage, or mailing a check.

What information you need before you start

Gather your Social Security number, date of birth, and current address before you begin. Fidelity will also ask for your employment status (employed, self-employed, retired, student, or other) and your gross income for the current year. If you are self-employed, have your net self-employment income ready. If you received income from a spouse's earnings and are filing jointly, you can use spousal income to fund a Roth IRA even if you did not work that year.

You will also need to decide how you want to fund the account. Most people link a checking or savings account at their bank. If you are transferring money from a Roth IRA at another brokerage, you will need the account number and routing information from that institution. Have your driver's license or passport available — Fidelity will ask you to verify your identity during the application.

The online application process

Start at fidelity.com and click "Open an Account." Select "Roth IRA" from the account type menu. You will be asked to enter your name, date of birth, Social Security number, and address. Fidelity will then ask about your employment status and income. Answer honestly: the IRS sets income limits for Roth contributions, and Fidelity uses this information to flag accounts that may exceed those limits.

Next, you will set up login credentials and choose security questions. Fidelity will verify your identity by asking questions based on your credit history — these are automated and take a few minutes. Once you pass verification, your account opens immediately. You will receive a confirmation email with your account number and a link to fund the account.

The entire process typically takes 10 to 15 minutes. If Fidelity cannot verify your identity automatically, a representative will contact you by phone within one business day to complete the process manually.

Funding your new Roth IRA

After your account opens, you can fund it in three ways. The fastest is linking your bank account directly through Fidelity's website — this takes one to three business days to clear. You can also mail a check to Fidelity (address provided in your confirmation email), though this takes five to seven business days. If you are moving money from another Roth IRA, you can request a direct transfer, which usually clears within five to ten business days.

You do not have to fund the account immediately. Your Roth IRA exists and is ready to invest as soon as it opens, even if it has a zero balance. However, you can only contribute money you earned in the current tax year, and the IRS deadline to contribute for a given year is the tax filing deadline (usually April 15 of the following year). If you are contributing for 2024, for example, you have until April 15, 2025 to deposit the money.

Choosing investments inside your Roth IRA

Once your account is funded, you need to decide what to invest in. Fidelity offers mutual funds, exchange-traded funds (ETFs), individual stocks, and bonds. If you do not choose an investment, your money will sit in a cash sweep account earning minimal interest. Most people new to investing choose a target-date fund, which automatically adjusts its mix of stocks and bonds as you approach retirement.

You can change your investments at any time without penalty — this is one advantage of a Roth IRA. If you are unsure where to start, Fidelity's website has educational resources and screeners to help you explore options. You can also call 1-800-343-3548 to discuss different fund types, though representatives cannot tell you which specific fund to buy.

Income limits and contribution rules

The IRS limits how much you can contribute to a Roth IRA each year based on your income and filing status. For 2024, the limit phases out between $146,000 and $161,000 for single filers, and between $230,000 and $240,000 for married couples filing jointly. These numbers change each year. If your income exceeds the upper limit for your filing status, you cannot contribute to a Roth IRA that year through the standard route.

You must have earned income to contribute — this means wages, salary, self-employment income, or taxable alimony. Investment income, Social Security, and retirement distributions do not count. If you are married and one spouse does not work, the working spouse can fund a spousal Roth IRA in the non-working spouse's name, as long as the couple's combined income is below the limit.

After your account opens: what happens next

Once your Roth IRA is open and funded, Fidelity will send you a welcome packet by mail with your account number and instructions. You can log in to your account online or through the Fidelity mobile app to check your balance, view your investments, and make changes. Fidelity does not charge an annual account fee for Roth IRAs, though some mutual funds and ETFs carry their own expense ratios.

You can contribute additional money to your Roth IRA throughout the year, up to the annual limit. You can also transfer money from another Roth IRA or roll over funds from a traditional IRA (though this has tax implications — consult a tax professional before doing this). Your money grows tax-free inside the account, and you can withdraw your contributions (not earnings) at any time without penalty.

Frequently Asked Questions

Can I open a Fidelity Roth IRA if I am self-employed?

Yes. You will need to report your net self-employment income (your business income minus business expenses). Fidelity will ask for this figure during the application. You can contribute up to the annual limit as long as your net self-employment income meets or exceeds the amount you want to contribute.

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

Bank transfers typically clear within one to three business days. Once the money arrives, it sits in a cash sweep account until you invest it. You can invest immediately after the transfer clears, or wait if you are still deciding where to put the money.

What if my income is too high to contribute to a Roth IRA?

If your income exceeds the IRS limit for your filing status, you cannot contribute directly. Some people use a "backdoor Roth" strategy, which involves contributing to a traditional IRA and then converting it to a Roth IRA. This has tax consequences and requires careful planning — consult a tax professional before attempting this.

Can I open a Roth IRA for my child?

Yes, if your child has earned income. This can be wages from a job, self-employment income, or modeling fees. The contribution limit is the lesser of the annual Roth IRA limit or the amount of earned income your child received that year. You would open the account as the custodian, and your child takes control at the age of majority (usually 18 or 21, depending on your state).

Do I have to invest the money right away, or can I leave it in cash?

You can leave your money in a cash sweep account indefinitely. However, cash earns very little interest, and the main advantage of a Roth IRA is tax-free growth on investments. Most people invest their contributions within days or weeks of funding the account.