How to Start a Roth IRA
As you start planning for your retirement, the first thing you should consider is your financial health. One of the best ways to grow your finances is through a Roth IRA.What's so great about the Roth IRA? The tax benefits, for one. When you contribute to a Roth IRA, your contributions are taxed, up front, but not upon withdrawal. That means that you pay taxes in today's dollars--not tomorrow's dollars.This article will explain how to start a Roth IRA.
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Instructions
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Starting a Roth IRA
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1
Find out if you're eligible. The income limits for contributing to a Roth IRA may change annually, so confirm that you are eligible.
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2
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.
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3
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.
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4
Decide if you want to contribute monthly or annually. You should financially prepare yourself for either situation.
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Invest and enjoy your financially free future!
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Tips & Warnings
Check each of the three main companies and see which one works for you (See resources below).
