How much money do you need to start a Roth IRA?

2) This, too, isn’t a fee, but you’ll need enough money to buy whatever investments you want in your Roth IRA. Some mutual funds have a $1,000, or higher, minimum investment (though once you make that initial investment, generally you can add to your investment with smaller amounts — as small as, say, $20).

How do I set up a Roth IRA account?

  1. Make Sure You’re Eligible. Most people are eligible to contribute to a Roth IRA, provided they have earned income for the year.
  2. Decide Where to Open Your Roth IRA Account. Almost all investment companies offer Roth IRA accounts.
  3. Fill Out the Paperwork.
  4. Make Your Investment Choices.
  5. Set Up Your Contribution Schedule.

What is the only requirement for opening a Roth IRA?

To open a Roth IRA, you must have earned income and your income cannot exceed certain limits.

What is the downside of a Roth IRA?

Key Takeaways

Roth IRAs offer several key benefits, including tax-free growth, tax-free withdrawals in retirement, and no required minimum distributions. An obvious disadvantage is that you’re contributing post-tax money, and that’s a bigger hit on your current income.