How to set up a roth ira with fidelity

Q: Is it free to open a Roth IRA with Fidelity?

Our IRAs have no account fees or minimums to open1 and commission-free trades. If you havent done so already, open a Fidelity traditional, rollover, or Roth IRA. Its quick and easy.

Q: Can I set up a Roth IRA by myself?

Opening a Roth IRA doesnt take a bunch of time or paperwork. Its just as simple as opening a checking account or contacting a financial advisor. Many banks offer Roth IRAs through an online application. You could also open a brokerage account with an investment firm (online or in person).

Q: What is the minimum amount to open a Roth IRA with Fidelity?

No account fees or minimums to open Fidelity retail IRA accounts. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs), and commissions, interest charges, and other expenses for transactions, may still apply. See Fidelity.com/commissions for further details. 2.

Q: Is there a fee for Roth IRA with Fidelity?

There is no cost to open and no annual fee for Fidelitys Traditional, Roth, SEP, and Rollover IRAs. A $50 account close out fee may apply. Fund investments held in your account may be subject to management, low balance and short term trading fees, as described in the offering materials.

If you prefer, you can download and mail in a Fidelity Roth IRA Conversion form (PDF); or call 800-544-6666 for assistance.

Table of Contents Show

When converting a traditional IRA, keep in mind:
Know your limits
Make it a habit
Is it free to open a Roth IRA with Fidelity?
Can I set up a Roth IRA by myself?
What is the minimum amount to open a Roth IRA with Fidelity?
Is there a fee for Roth IRA with Fidelity?

When converting a traditional IRA, keep in mind:

If you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
RMD amounts are not eligible to convert to a Roth IRA.
Generally, converted assets in the Roth IRA must remain there for at least five years to avoid penalties and taxes.
A distribution from a Roth IRA is tax-free and penalty-free, provided the 5-year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability, qualified first-time home purchase, or death.
RMDs are not required during the lifetime of the original owner.

Note: The 2017 Tax Cuts and Jobs Act eliminated the ability to recharacterize any conversions or qualified rollover contributions made to a Roth IRA in 2018 or after. For more information, consult your tax advisor or visit the IRS website

Starting early makes a difference, because your money has more time to grow. Don't be intimidated by the amount—contribute what you can every year to make an impact!

The hypothetical illustration assumes a 7% nominal annual growth rate on investments. The constant $6,000 contribution is made at the beginning of each year starting at ages 25 and 35 respectively. The total balances for the two hypothetical portfolios are then compared as the assumed retirement age of 65. All accumulated retirement savings amounts are shown in future (nominal) dollars. The illustration does not take into account any taxes or fees. Your own account may earn more or less than this example and income taxes will be due when you withdraw from your account. Investing in this manner does not ensure a profit or guarantee against a loss in declining markets. Investments that have potential for a 7% annual rate of return also come with risk of loss.
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You can contribute online using your computer or mobile device until your state's tax deadline that calendar year. Be sure to confirm that you're contributing for the correct year.

Know your limits

When you have earned income, you can contribute it to an IRA up to the maximum annual limit of $6,000 in 2022. If you're 50 or older, you're allowed to contribute an additional $1,000. If you have more than one IRA, the total contribution to all your IRAs can't exceed the annual limit.

The Secure Act removed the age limit in which an individual can contribute to an IRA. As long as you are still working, there is no age limit to be able to contribute to a Traditional IRA. With Roth IRAs, you can contribute at any age as long as your earned income falls within the allowable income limits. If you are unsure of how much you can contribute, use our calculator.

Make it a habit

Once you've calculated and made your contribution, don't forget to invest it. Contributions must be invested to maximize your savings. You can learn more about setting up a contribution schedule using Automatic Investments. Automatic investments allow you to select an amount, the date, and the frequency of investments. You're able to update this as your financial situation changes.

2022

Filing StatusModified adjusted gross income (MAGI)*Contribution LimitSingle individuals< $129,000$6,000≥ $129,000 but < $144,000Partial contribution (calculate)≥ $144,000Not eligibleMarried (filing joint returns)< $204,000$6,000≥ $204,000 but < $214,000Partial contribution (calculate)≥ $214,000Not eligibleMarried (filing separately)Not eligible$6,000< $10,000Partial contribution≥ $10,000Not eligible

* Married (filing separately) can use the limits for single individuals if they have not lived with their spouse in the past year.

No account fees or minimums to open Fidelity retail IRA accounts. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs), and commissions, interest charges, and other expenses for transactions, may still apply. See Fidelity.com/commissions for further details.

2. For 2021, full deductibility of a contribution is available to covered individuals whose 2021 Modified Adjusted Gross Income (MAGI) is $105,000 or less (joint) and $66,000 or less (single); partial deductibility for MAGI up to $125,000 (joint) and $76,000 (single). In addition, full deductibility of a contribution is available for non-covered individuals whose spouse is covered by an employer sponsored plan when filing jointly with a MAGI of $198,000 or less in 2021; and partial deductibility for MAGI up to $208,000. If neither you nor your spouse (if any) is a participant in a workplace plan, then your traditional IRA contribution is always tax-deductible, regardless of your income.

In 2022, full deductibility of a contribution is available to covered individual whose 2022 Modified Adjusted Gross Income (MAGI) is $109,000 or less (joint) and $68,000 or less (single); partial deductibility for MAGI up to $129,000 (joint) and $78,000 (single). In addition, full deductibility of a contribution is available for non-covered individuals whose spouse is covered by an employer sponsored plan when filing jointly with a MAGI of $204,000 or less in 2022; and partial deductibility for MAGI up to $214,000. If neither you nor your spouse (if any) is a participant in a workplace plan, then your traditional IRA contribution is always tax-deductible, regardless of your income.

3. For Traditional IRAs, penalty-free withdrawals include but are not limited to: qualified higher education expenses; qualified firm home purchase (lifetime limit of $10,000); certain major medical expenses; certain long-term unemployment expenses; disability; death; or substantially equal period payments.

A qualified distribution from a Roth IRA is tax-free and penalty-free, provided the 5-year aging requirement has been satisfied and one of the following conditions is met: age 59½ or older, disability, qualified first-time home purchase, or death.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

Optional investment management services provided for a fee through Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser and a Fidelity Investments company. Discretionary portfolio management provided by its affiliate, Strategic Advisers LLC, a registered investment adviser. These services are provided for a fee.

Is it free to open a Roth IRA with Fidelity?

Our IRAs have no account fees or minimums to open¹ and commission-free trades. If you haven't done so already, open a Fidelity traditional, rollover, or Roth IRA. It's quick and easy.

Can I set up a Roth IRA by myself?

Opening a Roth IRA doesn't take a bunch of time or paperwork. It's just as simple as opening a checking account or contacting a financial advisor. Many banks offer Roth IRAs through an online application. You could also open a brokerage account with an investment firm (online or in person).

What is the minimum amount to open a Roth IRA with Fidelity?

Is there a fee for Roth IRA with Fidelity?

There is no cost to open and no annual fee for Fidelity's Traditional, Roth, SEP, and Rollover IRAs. A $50 account close out fee may apply. Fund investments held in your account may be subject to management, low balance and short term trading fees, as described in the offering materials.