Yes, Fidelity offers Roth IRAs with no account minimums

Fidelity offers both traditional and Roth IRAs. You can open a Roth IRA directly through Fidelity's website, by phone, or in person at one of their branches. There is no minimum deposit required to open the account, though some of their investment options (like mutual funds) may have their own minimums once you fund it.

Fidelity is one of the larger custodians for self-directed IRAs, meaning you control what investments go into the account rather than choosing from a preset menu. This matters because it affects what you can actually buy once the account is open.

Key Takeaways

  • Fidelity allows you to open a Roth IRA with zero dollars and no minimum balance requirement.
  • You can invest in stocks, mutual funds, ETFs, bonds, and other securities through Fidelity's platform once you fund the account.
  • Fidelity's Roth IRA follows the same contribution limits and income restrictions as any other Roth IRA — these are set by the IRS, not by Fidelity.
  • You can move an existing Roth IRA from another provider to Fidelity through a direct transfer, which avoids taxes and penalties.

What you can invest in through a Fidelity Roth IRA

Once you open and fund a Fidelity Roth IRA, you can hold stocks, exchange-traded funds (ETFs), mutual funds, bonds, and money market funds. Fidelity's own mutual funds and ETFs carry no transaction fee when you buy them inside an IRA. If you buy mutual funds or ETFs from other companies, Fidelity may charge a transaction fee depending on the fund.

You cannot hold certain assets in any IRA, including Roth IRAs at Fidelity — collectibles, life insurance, and certain types of real estate are off-limits. The IRS sets these rules, not Fidelity, so they apply no matter which custodian you choose.

If you already have investments elsewhere and want to move them into a Fidelity Roth IRA, you can transfer them in kind (meaning the actual securities move over) or sell them and move the cash. A direct transfer avoids triggering any tax event.

How Fidelity's Roth IRA fees work

Fidelity does not charge an annual account fee to hold a Roth IRA. You will not pay a fee just for having the account open. However, you may pay fees depending on what you invest in — mutual funds charge expense ratios (an annual percentage), and some ETFs do as well. These fees vary by fund and are the same whether you hold the fund at Fidelity or elsewhere.

If you trade individual stocks or buy certain mutual funds from outside providers, Fidelity may charge a per-transaction fee. Before you fund the account, you can check Fidelity's fee schedule on their website to see what applies to the specific investments you plan to make.

Opening a Fidelity Roth IRA online or by phone

You can open a Roth IRA at Fidelity through their website in about 10 minutes. You will need your Social Security number, date of birth, and basic contact information. Fidelity will ask whether you want to fund the account immediately or leave it empty for now.

If you prefer to speak with someone, you can call Fidelity's IRA phone line or visit a local Fidelity branch. A representative can walk you through the process and answer questions about which investments might fit your situation. Phone representatives can also help if you are moving money from another IRA.

Moving an existing Roth IRA to Fidelity

If you have a Roth IRA at another bank or brokerage and want to move it to Fidelity, you can request a direct transfer. Contact your current provider and ask them to transfer the account to Fidelity. Fidelity can also initiate the transfer on their end — you provide them with your old account details, and they handle the paperwork with the other institution.

A direct transfer keeps the money in Roth IRA status the entire time, so there are no tax consequences. The process usually takes one to two weeks. During that time, your money sits in a holding account and does not earn returns, so the sooner you start the transfer, the sooner it settles.

If you withdraw the money yourself and deposit it at Fidelity instead, the IRS treats it as a rollover. You have 60 days to deposit it into another Roth IRA, or the withdrawal counts as taxable income and you may owe a penalty. A direct transfer avoids this risk entirely.

Roth IRA contribution limits and income rules at Fidelity

Fidelity does not set the contribution limits or income restrictions for Roth IRAs — the IRS does. For 2024, you can contribute up to $7,000 per year if you are under 50, or $8,000 if you are 50 or older. These limits change each year, and Fidelity will show you the current limit when you open the account.

There is also an income limit for Roth contributions. If your modified adjusted gross income is above a certain threshold, you cannot contribute the full amount or cannot contribute at all. The threshold depends on your filing status and changes yearly. Fidelity's website has a tool to check whether you can contribute based on your income.

If you earn too much to contribute directly to a Roth, some people use a "backdoor Roth" strategy — they contribute to a traditional IRA and then convert it to a Roth. Fidelity supports this approach, though you should understand the tax implications before you do it.

Frequently Asked Questions

Can I open a Fidelity Roth IRA with no money down?

Yes. Fidelity allows you to open a Roth IRA with a zero balance. You can fund it later, whenever you are ready. Some investment options within the account may have their own minimums once you do fund it, but the account itself has no minimum.

What is the difference between a Fidelity Roth IRA and a traditional IRA?

In a Roth IRA, you contribute after-tax money and withdrawals in retirement are tax-free. In a traditional IRA, contributions may be tax-deductible now, but withdrawals in retirement are taxed as income. Fidelity offers both types. The choice depends on whether you expect to be in a higher or lower tax bracket in retirement.

Can I move my Roth IRA from another bank to Fidelity?

Yes, through a direct transfer. Contact your current provider or ask Fidelity to initiate the transfer. The money stays in Roth status the entire time, so there are no taxes or penalties. The transfer usually takes one to two weeks.

Does Fidelity charge monthly fees for a Roth IRA?

Fidelity does not charge an annual or monthly account fee for holding a Roth IRA. You may pay fees on the investments inside the account (like mutual fund expense ratios), but not for the account itself.

What happens if I contribute more than the IRS limit to my Fidelity Roth IRA?

If you over-contribute, you should withdraw the excess and any earnings on it before your tax deadline. Fidelity can help you calculate what to withdraw. If you do not, the IRS will tax the excess and charge a penalty. This is an IRS rule, not a Fidelity rule, but Fidelity can guide you through the correction.