How to Open a Roth IRA Step by Step

You already know what a Roth IRA is – or you have at least heard it is a good idea. Now the question is how to actually open one. The good news: it takes about 10-15 minutes and you can do it entirely from your phone.

Here is the step-by-step process from start to first contribution.

Before You Start: Do You Qualify?

To contribute to a Roth IRA you need earned income – wages, salary, tips, or self-employment income. Investment income alone does not qualify.

There are also income limits. For 2026 the full contribution is available to single filers earning under $150,000 and married filing jointly under $236,000. Most hourly workers are well within these limits.

If you have earned income and are within the income limits, you qualify. That is it.

Step 1: Choose Where to Open It

You open a Roth IRA through a brokerage or financial institution. Your main options:

• Fidelity: No minimums, zero-fee index funds, excellent retirement support. Best all-around choice for most people. Read our Fidelity review.
• Betterment: Robo-advisor that manages the investments for you automatically. Great if you want a hands-off approach. Read our Betterment review.
• Vanguard: Well-known for low-cost index funds. Slightly more old-fashioned interface but very reliable.
• Robinhood: Simple interface, good for beginners. Added Roth IRA support recently. Read our Robinhood review.

For most hourly workers, Fidelity or Betterment are the best starting points.

Step 2: Gather What You Need

Before you start the application, have these ready:

• Social Security number
• Date of birth
• Bank account number and routing number (to fund the account)
• Government-issued ID (driver’s license or passport)
• Employment information (employer name, income estimate)

The application will ask for this information. Having it ready makes the process smooth and fast.

Step 3: Complete the Application

Go to your chosen provider’s website or app. Look for “Open an Account” or “Start Investing.” Select “Roth IRA” as the account type.

The application is straightforward – personal information, beneficiary designation (who gets the money if something happens to you), and funding information. Most applications take 10-15 minutes.

You will be asked to choose investments or agree to automatic investment management. If you are using Fidelity and want to keep it simple, select FZROX (Fidelity ZERO Total Market Index Fund) – it is free and covers the entire US stock market. If you are using Betterment, their robo-advisor handles the investment selection for you.

Step 4: Fund the Account

Once the account is open, link your bank account and make your first contribution. You can contribute up to $7,000 for 2026 (or $8,000 if you are 50 or older).

You do not have to contribute the maximum. Start with whatever you can. Even $50 per month – $600 per year – invested in a Roth IRA at age 25 and left alone until 65 grows to approximately $10,000. Small amounts matter more than most people realize.

Set up automatic monthly contributions if you can. Even $25 per month automated beats $100 per month that requires you to remember and decide.

Step 5: Choose Your Investments

If you did not choose investments during account setup, do it now. For a beginner, one fund is all you need:

• Fidelity: FZROX (zero expense ratio, total US market)
• Vanguard: VTI or VTSAX (total stock market, 0.03% expense ratio)
• Betterment: They choose for you based on your goals
• Robinhood: Any broad S&P 500 or total market ETF

Do not overthink this. One diversified fund, invested consistently, is a proven strategy. You can always adjust later as you learn more.

What Happens Next

Your contributions invest automatically. You check on it occasionally – quarterly or yearly is fine. You do not trade, you do not react to market news, you just let it grow.

Each year you can contribute up to the annual limit. The IRS adjusts the limits periodically. You have until the tax filing deadline (usually April 15) to make contributions for the previous year – so you can contribute to your 2026 Roth IRA until April 15, 2027.

Combined with compound interest working in your favor over decades, a Roth IRA opened today becomes one of the most powerful tools in your retirement.

The Bottom Line

Opening a Roth IRA takes 15 minutes and requires no minimum investment. The hardest part is starting. Once it is open and funded, the work is done – you just keep contributing consistently and let the growth build over time.

If you want to understand more about why a Roth IRA works so well for hourly workers before you open one, read our full guide: what a Roth IRA is and why every hourly worker should have one.