How do you open your first Roth IRA?

You open a Roth IRA with a brokerage or similar provider by confirming you have earned income, choosing the Roth IRA account type and moving money in. Opening the account is not the investment, so you then pick what the money buys inside it.

Free, no account. Checked October 22, 2026.

Check that you can contribute

You need taxable compensation, such as wages or self-employment income. For 2026 you can put in the smaller of $7,500 or your taxable compensation for the year, and $8,600 if you are 50 or older.

That limit is combined across all of your traditional and Roth IRAs. Roth eligibility also phases out with income, between $153,000 and $168,000 for single filers and between $242,000 and $252,000 for married couples filing jointly.

Choose where to open it

Banks, brokerages and robo-advisors all offer IRAs. Compare account fees, the minimum to open, and whether the provider offers the funds you want. A Roth IRA is a type of account, so the choice of provider does not change the tax rules.

The IRS says the account must be designated as a Roth IRA when it is set up. Pick Roth IRA and not traditional IRA on the application. You will usually need your Social Security number, a photo ID and a linked bank account, and the form asks you to name a beneficiary.

Fund it, then choose an investment

Money you transfer in often sits as cash until you buy something. Cash in an IRA grows slowly, so most people choose a fund for long-term money.

Two common starting points are a target-date fund, which shifts its mix as the target year nears, and a broad stock index fund. Compare the expense ratio, which is the yearly fee as a share of your balance, because fees come out of your growth. Funds can lose value, and nothing here is a recommendation of a product.

Know the deadline

You can make contributions for a tax year until the filing deadline for that year's return, without extensions. The IRS has said this about 2024: contributions were allowed until April 15, 2025. For 2026 the same rule points to April 15, 2027 for most people.

When you contribute between January 1 and that date, tell your provider which tax year the money is for. If you put in more than the limit, the IRS charges a 6% tax each year on the excess that stays in the account.

Make it automatic

A monthly transfer is a steady way to reach the limit without picking a date. The limit works out to $625 a month for 2026. A smaller amount still counts, and you can raise it as your pay grows.

A worked example

Sample, not your numbers

How much you can put in

Sample numbers, not yours. Two single filers each want to put $5,000 into a Roth IRA for 2026, and both have incomes below the phase-out range.

Person A earned income: $18,000
Person A limit, the smaller of $7,500 or $18,000: $7,500
Person A: $5,000 is within the limit by: $2,500
Person B earned income: $4,000
Person B limit, the smaller of $7,500 or $4,000: $4,000
Person B: $5,000 goes over the limit by: $1,000
6% a year on that $1,000 excess: $60

Earned income can cap the limit below $7,500. Person B can fix the excess by withdrawing it before the return deadline, as the IRS describes, or by contributing less next time.

Run your own numbers

List your accounts and see where a Roth IRA sits in the usual order for your money.

Common questions

Can I open a Roth IRA with no income?

Not for your own contribution in most cases. The limit is the smaller of $7,500 or your taxable compensation for 2026, so with none, the limit is zero. A spouse's income can sometimes fund a spousal IRA, which the IRS covers separately.

Is a Roth IRA the same as an investment?

No. It is an account that holds investments. You choose a fund or other asset inside it after you add money.

Can I also contribute to a 401(k)?

Yes. The IRA limit is separate from the 401(k) limit, though your income affects whether a traditional IRA deduction or a Roth contribution is allowed.

Which is better, Roth or traditional?

It depends mostly on whether your tax rate is lower now or in retirement. Our comparison article walks through a bracket example.

Go further in the course

Chapters 1 to 3 are free, no card needed. Chapter 1 explains compounding, which is why starting early matters, and Chapter 3 helps you find the monthly amount.

Keep reading

Sources

Figures checked on October 22, 2026. Limits and income ranges are for tax year 2026 and change most years. The April 15, 2027 date applies the IRS rule to 2026 and falls on a weekday, so it needs no shift. Withdrawal rules are not covered here.

Education, not financial, tax or legal advice. The example uses sample numbers, and your own situation will differ.