How to open a Roth IRA

This article is for informational purposes only and does not constitute tax, legal or financial advice. Tax rules and retirement account regulations can vary by individual circumstance. You should consult a qualified tax or financial professional before making any retirement or investment decisions.

What is a Roth IRA?

A Roth IRA is a retirement account that you fund with after-tax money. That means you contribute dollars you’ve already paid income tax on, rather than getting a tax deduction upfront. 

The main benefit comes later. If you follow the rules, qualified withdrawals in retirement are tax-free. This includes both your original contributions and any investment growth inside the account.

Roth IRAs are designed for long-term retirement saving. They’re typically used alongside, or instead of, workplace plans like a 401(k). Unlike some employer plans, a Roth IRA is opened and controlled by you.

Eligibility matters. Not everyone can contribute to a Roth IRA every year. The IRS sets income limits, contribution caps and earned income requirements that determine who can open and fund an account.

How to open a Roth IRA 

1. Check if you’re eligible

Before choosing a provider or filling out an application, it is important to confirm that you’re eligible to contribute to a Roth IRA. Eligibility is based on earned income, total income level and filing status. Age is less restrictive than many people expect.

Earned income rule

To contribute to a Roth IRA, you must have earned income for the year. Earned income generally includes wages, salaries, tips and self-employment income. Income from investments, rental properties or gifts doesn’t count on its own. If you don’t have earned income, you can’t make a contribution – even if you have savings available.

Who can open a Roth IRA?

Adults with earned income who fall within IRS income limits can open and fund a Roth IRA. Minors with earned income can also open a custodial Roth IRA with an adult managing the account (more on this below).

Spouses without earned income may still qualify through a spousal Roth IRA, as long as the household meets income requirements and one spouse has sufficient earned income.

Child Roth IRA eligibility

Minors can have Roth IRAs through custodial accounts. The child must have earned income, such as wages from a part-time job or self-employment income. The account is managed by an adult custodian until the child reaches the age of majority (18, 19 or 21), at which point control transfers.

Income limits and phase-outs

Roth IRAs are subject to income phase-out ranges set by the IRS. If your modified adjusted gross income falls within the phase-out range, your allowed contribution may be reduced. Above the upper limit, contributions aren’t allowed for that year.

These limits change over time, so it is worth checking the current thresholds before contributing.

Age rules

There’s no minimum age requirement to open a Roth IRA. If you have earned income, you can contribute at any age. There’s also no maximum age limit. As long as you have earned income and meet income requirements, you can continue contributing.

2. Decide where to open your Roth IRA

Once you know you’re eligible, the next decision is where to open your Roth IRA. These accounts are offered by several types of financial institutions, each with different strengths. The provider you choose can affect your investment options, fees, tools and overall experience. 

Roth IRA provider types

• Brokerages typically offer the widest range of investments, including stocks, Exchange-Traded Funds (ETFs), bonds and mutual funds.
• Banks often offer Roth IRAs with simpler investment options, such as Certificates of Deposit (CDs)
• Robo-advisors automate investment selection and rebalancing. 

What investors look for in a Roth IRA provider

Costs are usually a key factor, including account/trading fees and fund expense ratios. Investment choice also matters, especially if you want flexibility or access to specific assets. Lastly, minimum balance requirements and automation features can affect how easy it is to get started and stay on track over time.

Why user experience matters

Ease of use can matter more than many people expect. Clear dashboards, straightforward funding tools and accessible support can make it easier to stay consistent over time. Security and account protection are also quite important. Many investors look for providers that offer standard protections and transparent policies.

3. Gather your documents

Opening a Roth IRA requires basic personal and financial information. Having this ready can make the process faster. You will typically need the following: 

• Your Social Security number for identity and tax reporting purposes.
• Employment and income information to confirm eligibility and support compliance requirements.
• Beneficiary details, so that the account can be transferred according to your wishes if something happens to you.
• A linked bank account to fund contributions and manage transfers.

4. Open the account

Most Roth IRA applications are completed online. The process is usually straightforward if your information is ready.

You’ll select Roth IRA as the account type, review required disclosures, name your beneficiaries and confirm your personal details during setup. Digital identity verification is common and may include security questions or document checks. 

Once everything is approved, your account is open but not yet funded.

5. Fund your Roth IRA

Funding is the step that turns an empty account into an active one. The IRS sets annual contribution limits, which apply across all Roth IRAs you own. For 2026, the IRA contribution limit is $7,500 for individuals under the age of 50 and $8,600 for those 50 or older (including a $1,100 catch-up contribution).

Funding methods

There are several ways to fund a Roth IRA, depending on where the money is coming from and how the account is being set up.

• Direct contributions from a linked bank account are the most common method.
• Transfers move funds from another IRA of the same type.
• Rollovers shift assets from eligible retirement accounts under specific rules.

Contribution deadlines generally align with the tax filing deadline for that year and income limits still apply when funding the account, even if it is already open.

6. Choose your investments

Once funded, your Roth IRA doesn’t invest automatically unless you choose options that do so. Common investments include stocks, ETFs, bonds, mutual funds and CDs. Each asset type carries different risk and return characteristics. Your choices should align with your time horizon and comfort with market fluctuations.

7. Explore automatic contributions and review periodically

Automation can help maintain consistency by scheduling regular contributions. Periodic reviews allow you to adjust contributions, rebalance investments and stay aligned with changing goals. This step helps avoid missed deadlines and forgotten contributions.

What you need to know about the Crypto.com IRA 

Eligible US users can open a retirement account (Roth or Traditional) with the Crypto.com Stocks IRA. It’s part of our broader Stocks experience, which means retirement and non-retirement investments can be viewed and managed in one place

The account follows standard IRS rules around eligibility, contributions and withdrawals. This includes the ability to make new contributions, transfer an existing IRA or roll over funds from an eligible workplace retirement plan, such as a 401(k).

You can invest in a wide range of US-listed stocks and Exchange-Traded Funds. Features such as commission-free trading and fractional shares are also available, allowing for flexible portfolio construction regardless of your contribution size.

As with any IRA, applicable tax rules and regulations apply.

Open an IRA with Crypto.com Stocks

FAQs about opening a Roth IRA

Who can open a Roth IRA?
Anyone with earned income who falls within IRS income limits can open a Roth IRA. This includes adults and, in some cases, minors (through custodial accounts).

How do I open a Roth IRA?
You start by choosing a provider, completing an application and submitting basic personal and financial information. Once the account is approved, you can fund it and begin selecting your investments.

Where is the best place to open a Roth IRA?
The best place to open a Roth IRA depends on your priorities, such as fees, investment options and ease of use. Common providers include brokerages, banks and robo-advisors, each offering different tools and levels of flexibility.

What do I need to open a Roth IRA?
You typically need your Social Security number, details about your income or employment, beneficiary information and a linked bank account. This information is used for identity verification, tax reporting and funding the account.

Can I open a Roth IRA for my child?
Yes, through a custodial Roth IRA. The child must have earned income and contributions can’t exceed what they earned in that year. An adult manages the account until the child reaches the age of majority (18, 19 or 21 – depending on the state).

How old do I need to be to open a Roth IRA?
There’s no minimum age requirement to open a Roth IRA. As long as you have earned income and meet IRS eligibility rules, you can contribute regardless of age.

Do I need a job to open a Roth IRA?
You need earned income, which usually comes from a job or self-employment. Income from investments or gifts alone doesn’t qualify for Roth IRA contributions.

Can I have more than one Roth IRA?
Yes, you can have multiple Roth IRAs at different providers. However, your total contributions across all Roth IRAs must stay within the annual IRS contribution limits.

This is informational content sponsored by Crypto.com and should not be considered as investment advice.

Foris Capital US LLC (“FCUL” or referred to herein as “Crypto.com Stocks”) is a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a Member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). FCUL does not provide investment, legal or tax advice. The information provided is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation For further information about FCUL, please visit FINRA BrokerCheck. FCUL is a subsidiary of Crypto.com. 

FCUL is a separate entity from Crypto.com, Foris DAX, Inc., and other affiliated Foris companies. FCUL does not engage in the sale, transfer or custody of crypto currencies or digital assets. Crypto.com is a separate entity from FCUL and does not engage in the securities business. Customer balances and crypto holdings held and transacted at Crypto.com and other entities outside of FCUL are not covered by SIPC insurance and are separate from securities transactions and holdings at FCUL. Fractional shares are not available for all equities.

Crypto.com IRA services are offered to eligible U.S. users only. Eligible customers can open a Traditional IRA or Roth IRA with Foris Capital US, which supports stocks and cash, and a separate Traditional IRA or Roth IRA with Foris DAX Trust Company, LLC, which supports digital assets only. All services and features related to digital assets apply to the IRA provided by Foris DAX Trust Company, LLC, not by Foris Capital US, LLC. IRA features are subject to regulatory requirements and availability. All accounts are subject to eligibility requirements, and applicable terms and conditions. Users should consult with independent tax and financial advisors regarding their individual situation.

All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. Past performance does not guarantee future results.