Which IRA is right for you?

If you are interested in a Roth or traditional IRA, we can help you determine what option might be best for you.

Questions?

calculator
Step 1: Understand which IRA to open and fund

The IRS has certain requirements (such as age, income, and marital status) that impact how much you can contribute as well as how much you may be able to deduct.

Roth IRA Traditional IRA
Key tax benefits Contributions are made with after-tax money and any potential earnings grow tax-free. Additionally, you're able to withdraw your contributions tax-free and penalty-free at any time, for any reason. Earnings can be withdrawn without taxes or penalties as long as they are eligible. (See information on withdrawals below.) Contributions are generally made with after-tax money, but may be tax-deductible if you meet income eligibility.1 Any potential earnings grow tax-deferred, and are not taxed until you withdraw them after age 59½.
Income requirements There are specific IRS income limits for contributions to a Roth IRA. For example, in 2020, the upper limits are:
  • $124,000 for single
  • $196,000 for married filing jointly
Anyone 18 or over with earned income can contribute to a traditional IRA. However, there are specific income limits for how much might be tax-deductible.
  To better understand your eligibility, use our IRA Contribution Calculator.
Withdrawals Earnings from a Roth IRA can be withdrawn federally tax-free and penalty-free provided that it's been 5 years since your first contribution. You will pay taxes on your earnings and contributions when you make withdrawals.
  In addition to the above conditions, one of the following criteria must be met in order to make penalty-free withdrawals from either IRA: age 59½, qualified higher education expenses, qualified first home purchases (up to $10,000), certain major medical expenses, certain long-term unemployment expenses, death, disability.
Early-withdrawal penalties If you make withdrawals before you are 59½, you might have to pay taxes on your earnings, plus an additional 10% tax. If you make withdrawals before you are 59½, you might have to pay taxes on your earnings, plus an additional 10% tax.
Required minimum distributions (RMDs) Roth IRAs do not require you to withdraw a minimum amount of money at a certain age. Traditional IRAs generally require you to withdraw a minimum amount of money starting at 72.2

decide
Step 2: Decide if you want to manage your investments, or if you'd like us to do it


  Fidelity Roth IRA Fidelity Go® Roth IRA Fidelity® Personalized Planning & Advice Roth IRA3
Investment management
  • You are responsible for choosing and managing your investments
  • We choose and manage your investments using your goals and risk tolerance in this digital account
  • We choose and manage your investments using your goals and risk tolerance in this digital account
Planning & guidance
  • Access to robust planning tools, and support from a Fidelity representative as needed4
  • Access to robust planning tools, and support from a Fidelity advisor as needed4
  • Access to robust planning tools plus 1-on-1 coaching from a dedicated team of Fidelity advisors4 on a variety of financial topics
Minimums
  • No minimum to open an account5
  • No minimum to open an account6
  • $25,000 investment minimum across Personalized Planning & Advice accounts7
Fees
  • No account5 or advisory fees with this type of retail account
  • Depending on which investments you choose, there may be underlying fees
  • $0 for under $10,000
  • $3/mo for $10,000–$49,999
  • 0.35%/yr for $50,000 and above
  • No additional underlying fees for investments (invests in zero expense ratio Fidelity mutual funds)
  • 0.50%/yr advisory fee
  • No additional underlying fees for investments (invests in zero expense ratio Fidelity mutual funds)
Support
  • Thought leadership, research, 24/7 customer service
  • Thought leadership, research, 24/7 customer service
  • Thought leadership, research, 24/7 customer service
 




Looking for a more hands-on approach? You might want to consider Fidelity® Wealth Services for your planning and investment management needs. Minimum investment is $50,000 for access to a team of advisors or $250,000 for a dedicated advisor. Learn more


  Fidelity traditional IRA Fidelity Go® traditional IRA Fidelity® Personalized Planning & Advice traditional IRA3
Investment management
  • You are responsible for choosing and managing your investments
  • We choose and manage your investments using your goals and risk tolerance in this digital account
  • We choose and manage your investments using your goals and risk tolerance in this digital account
Planning & guidance
  • Access to robust planning tools, and support from a Fidelity representative as needed4
  • Access to robust planning tools, and support from a Fidelity advisor as needed4
  • Access to robust planning tools plus 1-on-1 coaching from a dedicated team of Fidelity advisors4 on a variety of financial topics
Minimums
  • No minimum to open an account5
  • No minimum to open an account6
  • $25,000 investment minimum across Personalized Planning & Advice accounts7
Fees
  • No account5 or advisory fees with this type of retail account
  • Depending on which investments you choose, there may be underlying fees
  • $0 for under $10,000
  • $3/mo for $10,000–$49,999
  • 0.35%/yr for $50,000 and above
  • No additional underlying fees for investments (invests in zero expense ratio Fidelity mutual funds)
  • 0.50%/yr advisory fee
  • No additional underlying fees for investments (invests in zero expense ratio Fidelity mutual funds)
Support
  • Thought leadership, research, 24/7 customer service
  • Thought leadership, research, 24/7 customer service
  • Thought leadership, research, 24/7 customer service
 




Looking for a more hands-on approach? You might want to consider Fidelity® Wealth Services for your planning and investment management needs. Minimum investment is $50,000 for access to a team of advisors or $250,000 for a dedicated advisor. Learn more