How Much Money Do I Need To Open a Roth IRA?

Minimum Deposit and IRS Limits for Roth IRAs Explained

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Individual retirement arrangements (IRAs) are accounts for saving money that offer special tax benefits. IRAs can be used on their own or they can supplement other retirement plans such as 401(k) accounts and pensions.

When you contribute to a Roth IRA, you’re contributing money that has already been taxed as income. Then, your money grows tax-free and you pay no tax when you withdraw the money in retirement.

Here, you’ll learn how a Roth IRA differs from a traditional IRA and how much money you need to open a Roth IRA account. You’ll also learn how to save for retirement and how to fund a Roth IRA.

Key Takeaways

  • A Roth IRA is a retirement savings account that allows you to withdraw money tax-free in retirement.
  • The IRS does not have a minimum required deposit to open a Roth IRA.
  • Some brokerages may have their own minimum deposit requirements, and they can also provide varying levels of personalized investing advice.
  • You can open a Roth IRA through an online application process with basic information like your name, Social Security number and address, among others.

How Much Income Do I Need To Open a Roth IRA?

The IRS does not require that you contribute money in order to open a Roth IRA , however some brokerages may have their own minimum requirement for investment. 


The IRS does require that you earn an income that does not exceed the amount you contribute to your IRA.

You usually open a Roth IRA with a brokerage account, and each brokerage account has its own rules for their minimum investment requirements. For example, Vanguard requires $1,000 to $3,000 to open a retirement account, while Fidelity and Charles Schwab don't have a minimum investment requirement.

Make sure you can buy the type of assets that you want through the brokerage you choose to open your Roth IRA. Make sure you fully understand the terms of the account. 


There are annual contribution limits for Roth IRAs. As of 2022, you may deposit up to $6,000 if you are under 50 and earn less than $129,000 as a single person or less than $204,000 if you are married and filing jointly. If you are over 50, you may deposit up to $7,000, and the same income limits apply.

Minimum Deposit Requirements for a Roth IRA

The IRS has no minimum deposit requirements. You can put as little money as you want into a Roth IRA with many brokerages. Each brokerage firm has its own minimum deposit requirements. 

Generally, when you have a higher minimum deposit requirement, you also get access to more personalized services like guidance from professional advisors.

Basic Level 

Many investment companies like Fidelity and Charles Schwab will allow you to open a Roth IRA with no minimum investment requirement. You’ll manage the investments on your own. These brokerages often provide online planning tools or education materials, but not personalized advice.

Some Professional Advising 

Some brokerages offer additional services, but require a higher minimum deposit. For example, Merrill’s Guided Investing requires a $1,000 account minimum and charges a 0.45% annual fee. With this account, you can access an investment advisory platform aligned to your goals.


The Fidelity Go Roth IRA plan has no minimum deposit requirement. But you’ll pay an advisory fee for accounts with more than $10,000 for Fidelity professionals to choose and manage your investments according to your goals. 

Advanced Personal Planning and Advice 

You can often find more customized investing advice with accounts with higher minimum deposits. If you’ve been saving through your Roth IRA for years, you may have enough money to meet the deposit requirement for these services, which can range from about $20,000 to $25,000. 

You’ll typically face an advisory fee with these accounts, which is an annual fee that is a percentage of your invested assets. For example, Merrill advisory fee for an advisor with its Guided Investing Account is 0.85%, while Fidelity charges 0.5% per year for Fidelity Personalized Planning & Advice Roth IRA.

How To Save Up for Roth IRA Contributions

Determining how much you’ll contribute to an IRA will depend on a number of aspects about your personal financial situation and goals. For example, you may want to consider first contributing to a 401(k) before an IRA if your employer provides matching contributions. Or you may first want to pay off high-interest debt. 


Once you’ve opened an IRA you can begin making deposits and investing money. The earlier you can start saving for retirement, the better. 

You can work to increase your contributions by creating a budget that allots a specific amount of your monthly income toward your retirement goals. Over time, even small deposits add up.

Frequently Asked Questions (FAQs)

How old do you have to be to open a Roth IRA?

There is no age limit with Roth IRAs. You simply must be working and making less than a specific amount of money ($125,000 as a single person or less than $198,000 if you are married and filing jointly in 2022). You can open a custodial IRA for a minor child.

How can I open a Roth IRA?

Opening a Roth IRA is fairly straightforward. First, choose a reputable investment firm and make sure their IRA terms, including minimum deposit requirements, match what you need. Fill out their online form. Be prepared with your Social Security number, driver’s license number, employer’s name and address, and beneficiary information.

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The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. IRS. “Roth IRAs.”

  2. Schwab. “Open a Roth IRA.”

  3. Fidelity. “Open a Fidelity Roth IRA.”

  4. Vanguard. “Roth vs. Traditional IRA: Compare, Then Decide.”

  5. IRS. “Amount of Roth IRA Contributions That You Can Make for 2022.”

  6. Merrill. “Open a Roth IRA Account With Merrill.”

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