Step 2: Choose who you want investing your Roth IRA—You or Fidelity?
Fidelity Roth IRA
You choose and manage your investments
Planning & guidance
Access to robust planning tools, and support from a Fidelity representative as needed2
No minimum to open an account3
No account3 or advisory fees with this type of retail account
Depending on which investments you choose, there may be underlying fees
Thought leadership, research, 24/7 customer service
Fidelity Go® Roth IRA
We choose and manage your investments using your goals and risk tolerance in this digital account
Planning & guidance
Access to digital planning tools and unlimited 1-on-1 coaching calls with a dedicated team of Fidelity advisors once your account balance reaches $25,0002
No minimum to open an account4
$0 for under $25,000 and 0.35%/yr for $25,000 and above
Invests in Fidelity mutual funds that do not charge management fees or, with limited exceptions, fund expenses
Thought leadership, research, 24/7 customer service
Looking for a more hands-on managed 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 $500,000 for a dedicated advisor.
Already opened your Roth? There are two quick tips.
Remember, you can withdraw whatever you contribute without taxes or penalties, so no reason to put it off.
Make a contributionLog In Required
To take advantage of tax-free growth, you'll need to pick investments. If you chose a Fidelity Go® Roth IRA, don't worry—we're investing for you. Didn't choose a Fidelity Go® Roth IRA? Don't let your contributions sit as cash, explore investment options.
If I qualify to contribute to both a traditional IRA and a Roth IRA, are there tax implications I should consider?
Having a mix of both pre-tax and Roth contributions can help create additional flexibility in retirement to respond to a great unknown—future tax rates. For people who expect income in retirement to be as high or higher than their current level, others who expect their tax rate in retirement to be higher than today, or younger people who expect steady income growth over their careers, Roth IRA contributions may be the better choice. But if you believe that your tax rates will be lower in retirement than they are now, you may want to prioritize pretax vehicles like the traditional IRA. Our IRA Contribution Calculator allows you to answer a few questions and find out which one might be right for you.
Should I own a Roth IRA?
Generally speaking, most investors should consider having a Roth IRA as part of their overall retirement plan because it offers federal tax-free growth potential and withdrawals, which have the potential to help minimize taxes and maximize retirement savings. Contributing to a Roth IRA involves income requirements.
How is a Roth IRA different from a traditional IRA?
With a Roth IRA, you contribute money that's already been taxed (that is, "after-tax" dollars). Any earnings in a Roth IRA have the potential to grow tax-free as long as they stay in the account. Withdrawals of earnings from Roth IRAs are federal income tax-free and penalty-free if a 5-year aging period has been met and the account owner is age 59½ or over, disabled, or deceased. Roth IRAs are not subject to required minimum distribution (RMD) rules during the lifetime of the original owner, so you can leave your assets in the Roth IRA where they have the potential to continue to grow.
With a traditional IRA, contributions can be made on an after-tax basis or a pre-tax (tax-deductible) basis if certain requirements are met. Any earnings in the traditional IRA are tax-deferred as long as they remain in the account. Withdrawals of pre-tax monies are subject to ordinary income tax when withdrawn. RMDs are required from traditional IRAs no later than April 1 of the year following the year in which you turn age 73.5 If you wait until April 1, you will then be required to take your second distribution by the end of that year.
For both types of IRAs, distributions before age 59½ may be subject to both ordinary income taxes and a 10% early withdrawal penalty. For a detailed comparison, view the traditional vs. Roth comparison table.
Note that with a Roth IRA, you're able to withdraw contributions you've made at any time, for any reason, with no taxes or penalty.
What tax form will I receive for my Roth IRA contributions?
If you contributed or rolled money to a Roth IRA, you will receive Form 5498 from Fidelity in January. Form 5498 summarizes your IRA contributions, rollovers, holdings, and fair market value. If you make a prior year contribution between January and the tax filing deadline, you will receive a revised 5498 in May. This form is informational only and does not need to be filed with your taxes. For help with this tax form, see the IRS Instructions for Form 5498 (PDF).
What tax form will I receive for my IRA withdrawals?
If you made withdrawals (of $10 or greater) from an IRA, you will receive Form 1099-R from Fidelity in January. For more details on Form 1099-R and reporting the withdrawals on your return, see the IRS Instructions for Form 1099-R (PDF).
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
For a distribution to be considered qualified, the 5-year aging requirement has to be satisfied, and you must be age 59½ or older or meet one of several exemptions (disability, qualified first-time home purchase, or death among them).
No account fees or minimums to open Fidelity retail IRA accounts. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs), and commissions, interest charges, and other expenses for transactions, may still apply. See Fidelity.com/commissions for further details.
The change in the RMDs age requirement from 72 to 73 applies only to individuals who turn 72 on or after January 1, 2023. After you reach age 73, the IRS generally requires you to withdraw an RMD annually from your tax-advantaged retirement accounts (excluding Roth IRAs, and Roth accounts in employer retirement plan accounts starting in 2024). Please speak with your tax advisor regarding the impact of this change on future RMDs.
Fidelity Go® provides discretionary investment management, and in certain circumstances, non-discretionary financial planning, for a fee. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, FBS and NFS are Fidelity Investments companies.
Fidelity® Wealth Services (FWS) Wealth Management service-level clients and all Fidelity® Strategic Disciplines (FSD) clients must generally qualify for support from a dedicated Fidelity advisor, which is based on a variety of factors (for example, a client with at least $500,000 invested in an eligible Fidelity account(s) would typically qualify). Account investment minimum is $50,000 for FWS, $100,000 for an FSD equity strategy, and $350,000 for an FSD bond strategy. Non-discretionary financial planning is available for Fidelity Strategic Disciplines clients if they qualify for Private Wealth Management.
Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917