How do I open a Roth IRA?

To open a Roth IRA, choose a brokerage or bank that offers IRAs, complete the account application, verify you have earned income and fall within the IRS income limits, then fund the account and select investments. The whole process typically takes under 30 minutes online.

A Roth IRA is one of the most flexible retirement accounts available to individuals — contributions can be withdrawn at any time without tax or penalty (earnings have different rules), and qualified withdrawals in retirement are completely tax-free. The IRS governs Roth IRAs under IRS Publication 590-A (Contributions to Individual Retirement Arrangements). Opening one takes only an online application and an initial deposit, but you must first confirm you're eligible.

Eligibility: income limits and earned income requirement

To contribute to a Roth IRA, you must have earned income (wages, self-employment income, or alimony counted as compensation) in the year you contribute. You cannot contribute more than your earned income for the year. Additionally, Roth IRA contributions phase out at higher incomes based on your modified adjusted gross income (MAGI) and filing status. Above the top of the phase-out range, direct contributions are not permitted (though a backdoor Roth IRA conversion is a separate strategy). The IRS publishes current phase-out ranges at IRS — Roth IRAs.

How to open the account

Choose a provider. Most major brokerages and many banks offer Roth IRAs online. Look for no account minimums, low-cost index fund options, and no annual maintenance fees.
Complete the application. You'll provide your Social Security number, date of birth, address, and bank account information for funding. The application typically takes 10–20 minutes.
Fund the account. Link a checking or savings account and initiate a contribution. For the current year's contribution limit, see the IRS IRA contribution limits page.
Select investments. A Roth IRA is a container — not an investment itself. You choose what to hold inside it: index funds, ETFs, mutual funds, stocks, or bonds. New investors often start with a target-date fund aligned to their expected retirement year.
Set up recurring contributions. Automating monthly contributions makes it easier to max out the annual limit over time.

Contribution limits and the spousal IRA

The IRS sets the annual IRA contribution limit (it adjusts for inflation each year), with an additional catch-up amount for savers age 50 and older. The limit applies across all your IRAs combined — Roth and traditional — not per account. If your spouse has little or no earned income, a spousal IRA allows a working spouse to contribute on their behalf, subject to the same annual limits, as long as the couple files a joint return. See IRS Publication 590-A for full spousal IRA rules.

IRS Roth IRA facts

Roth IRA contributions are not deductible, but qualified distributions — including earnings — are not included in gross income. — IRS — Roth IRAs
To contribute to a Roth IRA, you must have taxable compensation — wages, salaries, tips, self-employment income, or certain alimony — for the year of contribution. — IRS Publication 590-A
Roth IRA contribution eligibility phases out based on modified adjusted gross income; the IRS publishes the current phase-out ranges annually on its Roth IRA page. — IRS — Roth IRAs

Key takeaways

You need earned income and must fall within the IRS income limits to contribute directly to a Roth IRA.
Opening an account takes 10–30 minutes at any major brokerage — choose one with no minimums and low-cost index funds.
The annual contribution limit applies across all IRAs combined; check the IRS page each year for the current figure.
The account is just a container — you must choose investments inside it for the money to grow.
Spousal IRAs allow a working spouse to contribute on behalf of a non-earning spouse, as long as you file jointly.