By ShowMeStepByStepPublished Updated
Based on a video by Danny Sully.
Open a Roth IRA on Fidelity and you get a tax-free retirement bucket that keeps growing for the rest of your life. Money goes in after-tax, then every dollar of growth and every dollar you withdraw in retirement comes out tax-free. It's one of the strongest accounts the IRS lets you have, and Fidelity makes it free to open.
If you're already retired or close to it, a Roth IRA still matters. Retirees use a Roth for two big reasons: a Roth conversion (rolling Traditional IRA dollars into a Roth so future RMDs shrink) and a spendable bucket that doesn't push you into a higher Social Security tax bracket. The mechanics of opening the account are the same whether you're 25 or 65 - the only thing that changes is how aggressively you invest inside it.
For more on the retirement income picture this Roth fits into, see how much Social Security will I get, how to open a Fidelity account, when can I retire, how to calculate your RMD, and how Social Security is taxed.
The 2026 Roth IRA contribution limit is $7,000 a year if you're under 50, or $8,000 if you're 50 or older (the extra $1,000 is the catch-up contribution). Income phase-outs apply above roughly $150K single / $236K married filing jointly - check the IRS table for the exact 2026 numbers, since they shift each year with inflation. If you earn over the limit, ask Fidelity about a Backdoor Roth.
Both are retirement accounts. The difference is when you pay tax. A Traditional IRA is pre-tax going in and taxable coming out. A Roth IRA is after-tax going in and tax-free coming out (including all the growth). Retirees often pick Roth because withdrawals don't count toward provisional income, which keeps Social Security and Medicare premiums from getting taxed harder. Fidelity offers both - the account opening flow is nearly identical, you just pick the type on the first screen.
Yes. There is no upper age limit on opening or contributing to a Roth IRA. The only requirement is that you (or a spouse filing jointly) have earned income equal to or greater than the amount you contribute. A 75-year-old part-time worker can still fund a Roth. Kids can have a custodial Roth IRA too, as long as they have real earned income.
For most people the answer is a low-cost broad-market index fund. Fidelity's FXAIX (S&P 500 index, 0.015% expense ratio) is the workhorse pick. FZROX is Fidelity's zero-fee total market fund. If you're closer to retirement, blend in FXNAX (total bond market) to dial back risk - a common rule of thumb is (your age) percent in bonds, but tune it to your own risk tolerance. The point of the Roth wrapper is decades of tax-free compounding, so once you pick the funds, automate the buys and leave them alone.
From the Fidelity homepage, hover over Products in the top nav and click 'Retirement and IRAs.' Scroll down to the Roth IRA section and click 'Open an Account.' Fidelity has no account minimum and zero opening fees.
You'll fill out a personal info form (name, address, SSN, employment) and create a username and password. Approval is usually instant for US citizens with a US bank account.
From the home page, click Transfer in the top left, then 'Move money.' If your bank isn't already linked, choose 'Link a bank account to Fidelity' and enter your routing and account numbers (or sign in to your bank if it supports instant verification).
Linking is one-time. After this, transfers between your bank and Fidelity take 1-3 business days to clear.
On the transfer screen, pick your bank as the source and the Roth IRA as the destination. Type the dollar amount - Fidelity shows that year's contribution limit and how much you have left so you can't accidentally over-contribute.
Click Continue, review, and submit. You'll see a 'You've submitted your transfer request!' confirmation with the amount, transfer type (EFT), and date. The funds will land in 1-3 business days.
Cash sitting in a Roth IRA doesn't grow - you have to actually invest it. A simple starter pick is the Fidelity 500 Index Fund, which spreads your money across 500 of the largest US companies in one purchase.
Google 'Fidelity 500 Index Fund' to confirm the ticker symbol: FXAIX. The expense ratio is 0.015% - effectively free. This is the same fund Fidelity itself uses inside many of its target-date retirement portfolios.
Back on Fidelity, paste FXAIX into the search bar in the top right and click the result. You'll land on the Fidelity 500 Index Fund detail page with the Morningstar snapshot, expense ratio, performance over multiple periods, and the top 10 holdings (Apple, Microsoft, Amazon, etc).
Skim the basics so you understand what you're buying, then look for the Buy button in the top right.
Click Buy. On the order screen: confirm the symbol (FXAIX), the account (your Roth IRA), the action (Buy), and the dollar amount. Fidelity lets you buy mutual funds in dollar amounts instead of share counts, so you can put exactly your contribution to work.
Click Preview Order, then Place Order. Mutual funds settle at the end of the trading day, not in real time, so don't worry if your shares don't show up immediately.
To max out the annual limit without thinking about it, automate the deposits. From Accounts and Trade > Transfers > Manage Automatic Investments, click Schedule a New Transfer. Pick the dollar amount (annual limit divided by 12 = monthly target), the source bank, and the frequency.
Cash will pull from your bank automatically each month. You won't have to log in to remember.
Tip
If you can't max the annual limit, even $50 or $100 a month makes a meaningful difference over 30 years. Start with what fits your budget and bump it up later.
Recurring transfers move cash in. Automatic investments turn that cash into shares. From the same Manage Automatic Investments page, set up a recurring purchase: pick FXAIX (or whatever fund), enter the dollar amount, and pick your monthly date.
Now contributions land AND get invested without you logging in. This is dollar-cost averaging on autopilot - one of the cleanest setups for long-term wealth building.
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Test your knowledge
5 quick questions covering what you just read. No signup, no score saved — just a gut check.
Quick reference
5 questions, answers, and one-line explanations. Tap to expand.
1.Fidelity Roth IRA minimum?
Answer: $0
No account minimum, no opening fee at Fidelity. That's why it's a common pick for a first Roth.
2.Ticker FXAIX is what fund?
Answer: Fidelity 500 Index
FXAIX is the Fidelity 500 Index, broad large-cap US exposure in one mutual fund.
3.FXAIX expense ratio is 0.015%. $10k invested costs...
Answer: $1.50
0.015% of $10,000 is $1.50 per year. Effectively free for diversified US equity exposure.
4.Most common beginner mistake after transfer?
Answer: Leaving cash idle
Cash in an IRA does not grow. Contribution is step one; buying the fund is step two.
5.Dollar-cost averaging on autopilot needs...
Answer: Recurring xfer + buy
Two recurring jobs: transfer cash in, then buy the fund with the cash. Set both and contributions invest themselves.
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