Difficulty: Moderately Easy
Things You’ll Need:
- Financial services provider
Starting a Roth IRA
Step1
Find out if you're eligible. The income limits for contributing to a Roth IRA may change annually, so confirm that you are eligible.
Step2
Decide how much you want to contribute. Roth IRAs have annual limits that change each year, so you will want to look into the limits and decide if you want to contribute the full limit amount or a portion of the limit amount.
Step3
Decide who you want your financial services provider to be. Based on fees and minimum initial investment, you have a couple of choices. The most popular companies for Roth IRA services are: Fidelity, T. Rowe Price and Vanguard. Both Fidelity and Vanguard offer "no fee" Roth IRA contributions, but have larger minimum initial contributions. T. Rowe Price has a lower minimum initial investment, but has a small fee attached to their services, in most cases. All are known to have excellent reputations.
Step4
Decide if you want to contribute monthly or annually. You should financially prepare yourself for either situation.
Step5
Invest and enjoy your financially free future!