How to open a Roth IRA at Fidelity

You can open a Roth IRA at Fidelity online in about 15 minutes, or by phone if you prefer to talk through the process. Fidelity will ask for your Social Security number, date of birth, employment information, and a funding method — either a bank account for a transfer or a check you mail in. You do not need to fund the account immediately; you can open it empty and add money later.

The online process starts at Fidelity's website. You will select "Open an Account," then choose "Roth IRA" from the account type menu. Fidelity will walk you through personal information, then ask how you want to fund it. If you choose a bank transfer, you can link your checking or savings account directly. If you mail a check, Fidelity will give you an address and a form to include with it.

If you call instead, Fidelity's phone line is 1-800-343-3548. A representative will collect the same information over the phone and can answer questions about investment choices before you fund the account. Phone opening takes about 20 to 30 minutes.

Key Takeaways

  • You can open a Roth IRA at Fidelity online or by phone without funding it immediately.
  • Fidelity will need your Social Security number, date of birth, and a bank account or mailing address to fund the account.
  • Online opening takes about 15 minutes; phone opening takes 20 to 30 minutes.
  • After your account opens, you can choose how to invest the money from Fidelity's fund and stock options, or leave it in cash while you decide.
  • Your account is ready to receive contributions as soon as it opens, even if you fund it weeks or months later.

What you need before you start

Gather these documents and information before opening your account. You will need your Social Security number, date of birth, and current address. Fidelity will also ask for your employment status and employer name (or that you are self-employed or retired).

If you plan to fund by bank transfer, have your checking or savings account number and routing number ready. You can find the routing number on the bottom left of a check, or call your bank. If you plan to mail a check, you do not need the bank information until after your account opens — Fidelity will send you the mailing address and a deposit slip.

You do not need to have the money ready to open the account. Many people open a Roth IRA first and fund it later, or fund it gradually throughout the year.

Opening online versus by phone

Online opening is faster and works any time of day. You go to Fidelity.com, click "Open an Account," select "Roth IRA," and answer questions about yourself and how you want to fund it. The system confirms your information and your account number appears on screen. You can then log in and start choosing investments or leave the money in a cash sweep account while you decide.

Phone opening is slower but gives you a chance to ask questions. Call 1-800-343-3548 and tell the representative you want to open a Roth IRA. They will verify your identity, collect your information, and can explain Fidelity's investment options before you commit money. This route is useful if you are unsure about how to invest or want to understand the fees.

Both routes result in the same account. The choice depends on whether you want speed or conversation.

How to fund your account after it opens

After your account opens, you can fund it by bank transfer, check, or wire transfer. Bank transfer is the fastest — Fidelity links your account and money arrives in one to three business days. To set this up, log into your Fidelity account, go to "Transfers & Payments," and select "Link Bank Account." You will enter your bank's routing number and your account number, then choose how much to transfer.

If you mail a check, write the account number on the check and mail it to the address Fidelity provides. Include the deposit slip they send you. The check clears in five to seven business days after Fidelity receives it.

Wire transfers are also available but cost money — usually $15 to $25 — so most people use bank transfer or check instead. You can also fund by rolling over money from another IRA or 401(k), which has its own process that Fidelity will walk you through if you choose that route.

Choosing investments for your Roth IRA

After funding, you decide how to invest the money. Fidelity offers individual stocks, mutual funds, exchange-traded funds (ETFs), and bonds. If you do not choose anything, the money sits in a cash sweep account earning a small interest rate while you make up your mind.

Many people new to Roth IRAs start with a target-date fund, which automatically adjusts its mix of stocks and bonds as you get closer to retirement. Fidelity's target-date funds are named by year — for example, "Fidelity Freedom Index 2050" if you plan to retire around 2050. You pick one fund and Fidelity handles the rest.

If you want to choose individual investments, Fidelity's website has research tools and educational articles. You can also call 1-800-343-3548 and ask a representative for suggestions, though they cannot tell you which specific investment to pick.

What happens after your account is open

Your Roth IRA is now active and you can contribute money to it. For 2024, the contribution limit is $7,000 per year if you are under 50, or $8,000 if you are 50 or older. You can contribute all at once or spread contributions throughout the year.

You can also change your investments anytime without penalty. If you put money in a target-date fund and later want to switch to individual stocks, you can do that by logging into your account and moving the money. Fidelity does not charge a fee for moving money between their own funds.

Your account statement arrives quarterly by mail or email, showing your balance, contributions, and investment performance. You can also check your balance anytime by logging into Fidelity.com or using the Fidelity mobile app.

Frequently Asked Questions

Can I open a Roth IRA at Fidelity if I already 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 annual limit — $7,000 for 2024 if you are under 50. If you contribute $3,000 at one bank and $4,000 at Fidelity, you have hit your limit for the year.

Do I have to invest the money right away after I fund my account?

No. After you transfer money to your Roth IRA, it can sit in a cash sweep account earning interest while you decide how to invest it. There is no deadline to choose investments. Many people open the account, fund it, and take a few weeks to research before picking funds.

What if I do not have a bank account to link for a transfer?

You can mail a check instead. After your account opens, Fidelity will send you a mailing address and a deposit slip. Write your account number on the check, include the slip, and mail it. The check clears in five to seven business days. You can also ask about wire transfer options when you call to open the account.

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

Yes. During the opening process, select "Self-Employed" when asked about employment status. You do not need to provide an employer name. The account opens the same way as for anyone else. If you have self-employment income, you may also be able to open a SEP IRA or Solo 401(k) at Fidelity, which have higher contribution limits.

How long does it take for my account to be fully set up and ready to use?

Your account opens immediately after you complete the online form or phone call. If you fund by bank transfer, the money arrives in one to three business days. If you mail a check, it takes five to seven business days after Fidelity receives it. You can start investing as soon as the money arrives.