How to Open a Roth IRA

A roth ira allows you to save after-tax dollars, then withdraw those investments and earnings tax-free in retirement. It’s a smart way to diversify your retirement savings, especially if you expect that you’ll be in a higher income tax bracket when you retire.

How do I open a Roth IRA for a beginner?

You can open a roth ira at many banks, credit unions, brokerages and robo-advisors. Depending on your provider, you can invest in stocks, mutual funds, ETFs and even alternative assets like real estate and cryptocurrencies. The best roth ira providers offer a variety of investment options, competitive fees and excellent customer service.

Some financial institutions have minimum account balance requirements and other terms that you should keep in mind when selecting an IRA. For instance, some require that you bank with them to be able to open an IRA, and others may give existing banking customers a discount on their IRA fees.

If you’re looking to invest your roth ira in a wider range of assets, consider opening a self-directed IRA (SDIRA) at a brokerage or robo-advisor. These types of accounts let you choose your own investments, or they’ll select them for you based on your time horizon and risk tolerance.

Schwab is one of the top roth ira providers because it offers an extensive list of IRA investments, no account minimum and low fees. It also provides ample education and resources for new investors, high-caliber trading tools for active traders and responsive customer support. Its robo-advisor, Schwab Intelligent Portfolios, manages your account using its own in-house funds, which have historically earned strong returns.

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