Yes, Fidelity offers Roth IRAs with no account minimum

Fidelity does offer Roth IRAs. You can open one directly through Fidelity's website or by phone, and there is no minimum deposit required to start. This means you can open an account with $1 if you want to, though most people fund it with at least enough to invest in a fund or stock.

Fidelity is one of the largest brokerages in the United States, so the Roth IRA it offers comes with the same investment options available to its other account holders. You get access to stocks, mutual funds, exchange-traded funds (ETFs), and bonds. The account itself is straightforward: you contribute after-tax money, it grows tax-free, and you withdraw it tax-free in retirement.

Key Takeaways

  • Fidelity Roth IRAs have no account minimum, so you can open one with any amount of money.
  • You can invest in stocks, mutual funds, ETFs, and bonds once your account is open.
  • Fidelity charges no annual account fee for Roth IRAs, though some mutual funds within the account carry their own expense ratios.
  • You can set up automatic monthly contributions directly from your bank account to stay on track with your savings goal.
  • Fidelity allows you to roll over a Roth IRA from another brokerage into a Fidelity Roth IRA at no cost.

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 the Roth IRA option. You will need your Social Security number, date of birth, and a valid form of ID. Fidelity will verify your identity electronically, and your account opens immediately in most cases.

Once your account is open, you can fund it by linking a bank account for transfers, mailing a check, or wiring money. After you fund it, you choose what to invest in. If you are not sure where to start, Fidelity offers target-date funds—these automatically adjust their mix of stocks and bonds as you get closer to retirement—and index funds that track the overall market.

What investments are available in a Fidelity Roth IRA

Fidelity's Roth IRA gives you access to thousands of investments. You can buy individual stocks, which means you pick specific companies to own. You can buy mutual funds, which pool money from many investors to buy a basket of stocks or bonds. You can buy ETFs, which are similar to mutual funds but trade like stocks during the day. You can also buy bonds, which are loans you make to companies or governments.

Fidelity also offers its own mutual funds and ETFs, many of which have low expense ratios—the annual cost to own them. Some of Fidelity's index funds charge as little as 0.03% per year, meaning you pay $3 annually for every $10,000 invested. This is important because lower costs mean more of your money stays invested and grows over time.

Fidelity Roth IRA fees and costs

Fidelity charges no annual account fee for a Roth IRA. You will not pay a fee just for having the account open, even if you do not trade or invest anything.

However, the investments inside your account may have costs. If you buy a mutual fund, it charges an expense ratio—a percentage of your money each year. If you buy individual stocks, Fidelity charges no commission (no per-trade fee). Some mutual funds offered through Fidelity are from other companies and may have higher expense ratios than Fidelity's own funds. Before you invest, check the expense ratio so you know what you are paying.

Moving a Roth IRA from another brokerage to Fidelity

If you already have a Roth IRA at another brokerage—say, at Vanguard or Charles Schwab—you can move it to Fidelity. This is called a rollover, and it is tax-free. You do not withdraw the money yourself; instead, the old brokerage sends it directly to Fidelity. This protects you from accidentally triggering taxes or penalties.

To start a rollover, contact Fidelity and ask for a Roth IRA rollover form. Fidelity will handle most of the paperwork with your old brokerage. The process usually takes one to two weeks. Your investments may be sold and moved as cash during the transfer, so you will need to reinvest the money once it arrives at Fidelity. There is no cost to do this.

Annual contribution limits and Roth IRA rules at Fidelity

The amount you can contribute to a Roth IRA each year is set by the IRS, not by Fidelity. For 2024, you can contribute up to $7,000 per year if you are under 50 years old, or $8,000 if you are 50 or older. These limits change periodically, so check the IRS website or ask Fidelity for the current year's limit.

You can only contribute money you earned from work—wages, self-employment income, or similar. You cannot contribute money from investments or gifts. Fidelity will not stop you from over-contributing, but the IRS will penalize you if you do, so keep track yourself or set up automatic contributions that stay within your limit.

Fidelity Roth IRA vs. other brokerages

Fidelity is not the only place to open a Roth IRA. Vanguard, Charles Schwab, E*TRADE, and many banks also offer them. The main differences are the investment options available, the quality of customer service, and the expense ratios on their own funds.

Fidelity's advantage is its large selection of low-cost funds and its strong customer service. Its disadvantage, if it is one, is that it is a large company, so you may not get as personalized an experience as a smaller firm. If you already have a brokerage account elsewhere and like it, you may find it simpler to open your Roth IRA there instead of splitting your accounts. The most important thing is to open one somewhere—the specific brokerage matters far less than starting to save.

Frequently Asked Questions

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

Yes. As long as you have earned income from self-employment, you can contribute to a Roth IRA at Fidelity. Your contribution limit is still the same as anyone else's ($7,000 or $8,000 depending on age), but it cannot exceed your total earned income for the year.

What happens if I need to withdraw money from my Fidelity Roth IRA before retirement?

You can withdraw your contributions (the money you put in) at any time without penalty. Withdrawing earnings (the growth) before age 59½ usually triggers a 10% penalty plus taxes, unless you meet a specific exception like a first-time home purchase or disability. Check with Fidelity about your situation before you withdraw.

Does Fidelity offer a Roth IRA match or employer contributions?

No. A Roth IRA is an individual account, not an employer plan. If your employer offers a 401(k) match, that is separate from your Roth IRA. You can have both at the same time and contribute to each independently.

Can I convert a traditional IRA to a Roth IRA at Fidelity?

Yes. Fidelity can help you convert a traditional IRA to a Roth IRA. You will owe taxes on the amount you convert in that year, but the money grows tax-free afterward. Contact Fidelity for the conversion form and to understand the tax impact before you proceed.