Yes, Fidelity offers Roth IRAs with multiple account types

Fidelity offers Roth IRAs through several account structures: a standard Roth IRA, a Roth IRA brokerage account, and a Roth IRA for self-employed people (Solo Roth 401(k)). You can open any of these directly through Fidelity's website or by phone. There is no account opening fee, and Fidelity does not charge annual maintenance fees on Roth IRAs.

The main difference between Fidelity's Roth IRA options is what you can invest in. A standard Roth IRA at Fidelity lets you choose from mutual funds, exchange-traded funds (ETFs), and individual stocks. A Roth IRA brokerage account gives you the same investment choices but with no contribution limits — though contributions to a Roth IRA itself are still capped by IRS rules. The Solo Roth 401(k) is designed for self-employed people and small business owners and has higher contribution limits than a regular Roth IRA.

Key Takeaways

  • Fidelity charges no account opening fee or annual maintenance fee for Roth IRAs.
  • You can invest in mutual funds, ETFs, and individual stocks within a Fidelity Roth IRA.
  • Fidelity's Roth IRA brokerage option removes investment restrictions but does not change IRS contribution limits.
  • Self-employed people can open a Solo Roth 401(k) at Fidelity, which allows higher annual contributions than a standard Roth IRA.

What you can invest in at Fidelity

Fidelity's Roth IRA lets you hold mutual funds (including Fidelity's own funds), ETFs, individual stocks, bonds, and money market funds. You can also hold cash in the account while you decide what to invest in. There are no restrictions on which stocks or funds you can buy — Fidelity does not limit your choices to its own products.

If you want even more flexibility, Fidelity's Roth IRA brokerage account removes the typical investment menu restrictions. This means you can trade individual stocks, options, and other securities without being confined to a preset list. However, this flexibility comes with more responsibility: you manage all trades yourself, and Fidelity does not provide investment advice for brokerage accounts.

How to open a Fidelity Roth IRA

You can open a Fidelity Roth IRA online in about 10 minutes. Go to Fidelity's website, select "Open an Account," and choose "Roth IRA" from the account type menu. You will need your Social Security number, date of birth, employment information, and a funding method (bank account or transfer from another IRA). Fidelity will ask about your investment experience and risk tolerance, but these answers do not determine whether you can open the account — they help Fidelity suggest investments.

You can also open a Roth IRA by calling Fidelity at 1-800-343-3548. A representative will walk you through the process and can answer questions about which account type fits your situation. Phone opening takes longer than online but may be helpful if you have questions about investment options or need to transfer funds from another retirement account.

Funding your Fidelity Roth IRA

You can fund a new Roth IRA by linking a bank account and transferring money directly, or by mailing a check. Fidelity also accepts rollovers from other IRAs or from an employer 401(k) plan if you have left that job. If you are rolling over from a traditional IRA, the amount you roll over will be taxed in the year of the rollover — this is called a backdoor Roth conversion and has tax consequences you should discuss with a tax professional before proceeding.

The IRS sets annual contribution limits for Roth IRAs. 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 apply across all Roth IRAs you own, not per account. If you have a Roth IRA at another bank and also open one at Fidelity, your total contributions to both accounts cannot exceed the annual limit.

Fidelity's investment tools and research

Fidelity provides research reports, stock screeners, and educational content at no extra cost. You can read analyst reports, track your portfolio performance, and set up automatic rebalancing if you want your investments adjusted periodically. Fidelity also offers access to financial advisors through its advisory services, though these services charge a fee separate from the Roth IRA account itself.

If you are new to investing, Fidelity's website includes educational articles and videos about how IRAs work, asset allocation, and retirement planning. You can also use Fidelity's retirement calculator to estimate how much you need to save based on your age and retirement goals.

Comparing Fidelity to other Roth IRA providers

Other major brokers also offer Roth IRAs with no account fees: Charles Schwab, E*TRADE, Vanguard, and Merrill Edge all have similar structures. The main differences are in investment options, research tools, and customer service. Fidelity is known for low-cost mutual funds and a large selection of ETFs. Vanguard specializes in low-cost index funds. Charles Schwab and E*TRADE offer broader stock and options trading. Your choice depends on whether you want to focus on funds, individual stocks, or a mix.

If you already have a brokerage account or 401(k) at Fidelity, opening a Roth IRA there keeps all your accounts in one place, which can simplify record-keeping and transfers. If you are starting from scratch, compare the investment options and tools at each provider to see which fits your investing style.

Frequently Asked Questions

Can I move money from a traditional IRA to a Fidelity Roth IRA?

Yes, you can roll over a traditional IRA to a Roth IRA at Fidelity. The amount you roll over is taxed as income in the year of the rollover. You will owe taxes on the full amount unless you have already paid taxes on that money. Consult a tax professional before doing a Roth conversion to understand the tax bill.

Does Fidelity charge fees to trade stocks in a Roth IRA?

No. Fidelity charges no commission on stock trades, ETF trades, or mutual fund purchases within any IRA account, including Roth IRAs. Some mutual funds may have internal expense ratios, but those are set by the fund company, not by Fidelity.

What happens if I contribute more than the annual limit?

The IRS charges a 6% penalty tax each year on excess contributions that remain in the account. You can remove the excess contribution and any earnings on it before your tax deadline to avoid the penalty. Contact Fidelity if you accidentally over-contribute; they can help you withdraw the excess.

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

Yes. You can open a standard Roth IRA if you have any earned income. If you want higher contribution limits, Fidelity also offers a Solo Roth 401(k), which allows you to contribute up to $69,000 per year (for 2024) as both employee and employer. A Solo Roth 401(k) requires more paperwork than a standard Roth IRA.

Is there a minimum deposit to open a Fidelity Roth IRA?

No. Fidelity does not require a minimum opening deposit. You can open the account with $0 and fund it later, or start with any amount you choose.