Opening a Fidelity Roth IRA account takes about 10 minutes online

Go to Fidelity's website and select "Open an account." You'll choose "Roth IRA" from the account type menu. Fidelity will ask for your Social Security number, date of birth, employment status, and current address. You don't need to fund the account immediately — you can open it empty and add money later.

The account opens instantly. Fidelity assigns you an account number and shows you a dashboard where you can see your balance (zero at first) and begin investing. You can start this process on your phone or computer; Fidelity doesn't require a minimum deposit to open the account itself, though some of their investment options do have minimums once you're ready to buy.

If you already have a Fidelity brokerage account or checking account, the process is even faster — you can link your existing login and skip some verification steps.

Key Takeaways

  • Fidelity Roth IRAs have no account opening fee and no minimum deposit required to open, though individual investments may have minimums of $1 to $2,500 depending on what you choose.
  • You can fund your account by linking a bank account for electronic transfer, mailing a check, or rolling over money from another IRA at a different institution.
  • Once money is in the account, you can invest it in stocks, mutual funds, exchange-traded funds (ETFs), or money market funds through Fidelity's platform.
  • Fidelity charges no annual account maintenance fee and no trading commissions on stocks and ETFs, but some mutual funds carry expense ratios you should review before buying.
  • Your contribution limit for 2024 is $7,000 per year if you're under 50, or $8,000 if you're 50 or older, and you must have earned income to contribute.

Funding your account: the three main routes

Bank transfer is the fastest method. Link your checking or savings account to your Fidelity Roth IRA, and you can move money electronically in one to three business days. Fidelity will ask you to verify the account by confirming two small deposits they send to your bank, or you can verify instantly if your bank is on Fidelity's list of supported institutions.

Check by mail takes longer — typically five to ten business days — but requires no online linking. Write the check to "Fidelity Investments," include your account number on the memo line, and mail it to the address Fidelity provides in your account settings.

Rollover from another IRA is the route if you have a Roth IRA or traditional IRA at another bank or brokerage. Contact your current provider and ask them to initiate a direct rollover to Fidelity. The money moves between institutions without touching your hands, so there's no tax consequence. This usually takes one to two weeks. If you have a traditional IRA and roll it to a Roth, you'll owe income tax on the pre-tax money you convert, but Fidelity will walk you through the paperwork.

Choosing what to invest in once money arrives

After your money lands in the account, you have choices. Fidelity offers thousands of mutual funds, hundreds of ETFs, individual stocks, and money market funds. If you're new to investing, start with one of Fidelity's target-date funds — these are single funds that automatically shift from stocks to bonds as you approach retirement. You pick the fund based on your expected retirement year (for example, "Fidelity Freedom Index 2055 Fund" if you plan to retire around 2055), and the fund rebalances itself.

Alternatively, you can build a simple portfolio yourself. Many people use a three-fund approach: a U.S. stock index fund, an international stock index fund, and a bond index fund, divided by age and risk tolerance. Fidelity's index funds typically have low expense ratios — the annual cost you pay to own them — often 0.03% to 0.20% per year.

You don't have to invest all your money at once. Many people set up automatic monthly transfers from their bank account and invest that money as it arrives, a method called dollar-cost averaging. This spreads your purchases across different market prices and can reduce the stress of timing the market.

Understanding Fidelity's fees and what you'll actually pay

Fidelity charges no annual account fee, no trading commissions on stocks and ETFs, and no fee to open or close the account. This is straightforward and rare among brokerages.

What you do pay depends on what you invest in. If you buy Fidelity's own index funds or ETFs, the expense ratio is typically very low — often under 0.10% per year. If you buy a mutual fund from another company, that fund charges its own expense ratio, which Fidelity doesn't control. Some actively managed funds charge 0.50% to 1.00% or more annually. Before you buy any fund, check its expense ratio in the fund details — Fidelity shows this clearly on the fund's page.

If you hold individual stocks, you pay nothing per trade. If you use Fidelity's advisory services (like their robo-advisor), those carry separate fees, but you don't have to use them. A basic Roth IRA at Fidelity with index funds costs almost nothing beyond the fund's own expense ratio.

Contribution limits and income rules you need to know

For 2024, you can contribute up to $7,000 per year to a Roth IRA if you're under 50, or $8,000 if you're 50 or older. This limit applies across all your Roth IRAs combined — if you have a Roth at Fidelity and another at a different bank, your total contributions to both cannot exceed the annual limit.

You must have earned income to contribute. This means wages from a job, self-employment income, or freelance work — not investment returns, Social Security, or inheritance. Your contribution limit is capped at your total earned income for the year if you earned less than the limit.

There's also an income phase-out for Roth contributions. If your modified adjusted gross income (MAGI) exceeds a certain threshold, you cannot contribute the full amount or may not be able to contribute at all. The threshold varies by filing status and changes yearly. For 2024, the phase-out begins at $146,000 for single filers and $230,000 for married filing jointly, but check Fidelity's current limits or the IRS website because these numbers change annually.

Moving money between Fidelity accounts or to another institution

If you want to transfer your Roth IRA from Fidelity to another bank or brokerage, you can request a direct transfer. Contact Fidelity's customer service, and they'll initiate the move to your new provider. This is a trustee-to-trustee transfer, so no tax consequence occurs. It typically takes one to two weeks.

You can also withdraw money from your Roth IRA, but understand the rules first. You can withdraw your contributions (the money you put in) at any time tax-free. Withdrawing earnings (investment gains) before age 59½ usually triggers a 10% penalty plus income tax, unless you meet a specific exception like a first-time home purchase (up to $10,000 lifetime) or a may have access to education expense. After age 59½, you can withdraw earnings tax-free as long as the account has been open for at least five years.

Automating contributions so you don't forget

Set up automatic monthly transfers from your bank account to your Fidelity Roth IRA. This removes the need to remember to contribute and spreads your purchases across the year. In Fidelity's account settings, go to "Transfers" and select "Set up recurring transfer." Choose the amount, frequency (usually monthly), and the date each month you want the transfer to happen.

Many people contribute monthly rather than in one lump sum. If you earn $60,000 per year and want to max out your $7,000 annual contribution, you could set up a $583 monthly transfer. This way, you're investing regularly without thinking about it, and you're not trying to time the market with one large deposit.

You can change or stop the automatic transfer at any time through your account settings. If you receive a bonus or tax refund, you can also make a one-time contribution on top of your regular transfers, as long as you don't exceed the annual limit.

Frequently Asked Questions

Do I need a minimum amount of money to open a Fidelity Roth IRA?

No minimum is required to open the account itself. However, some investments within the account have minimums — for example, some mutual funds require $2,500 to buy, while index funds and ETFs often have $1 minimums or none at all. You can open the account and fund it gradually.

Can I contribute to a Roth IRA if I'm self-employed?

Yes, as long as you have net self-employment income. Your contribution limit is the lesser of $7,000 (or $8,000 if 50+) or your total earned income for the year. If you earned $5,000 from freelance work, you can contribute up to $5,000 to a Roth IRA.

What happens if I contribute more than the annual limit?

The excess contribution is subject to a 6% penalty tax each year it remains in the account. You can withdraw the excess and any earnings on it before your tax filing deadline to avoid the penalty. Contact Fidelity if you over-contribute; they can help you correct it.

Can I invest in cryptocurrency or options through a Fidelity Roth IRA?

Fidelity allows cryptocurrency purchases in some retirement accounts, but rules vary by account type and change over time. Options trading is available in Roth IRAs at Fidelity if you request approval. Contact Fidelity to confirm what's available for your specific account and what approval steps are needed.

How do I know if a Fidelity fund is a good choice for my Roth IRA?

Look at the expense ratio first — lower is better. Check the fund's holdings to see if it matches your investment goals (U.S. stocks, international stocks, bonds, etc.). Read the fund's fact sheet on Fidelity's website, which shows performance history and risk level. If you're unsure, a target-date fund or a simple three-fund portfolio of index funds is a solid starting point.