How to Open IRA

6 steps 30 min Intermediate

Learn how to open ira with our detailed step-by-step guide. Follow our easy instructions to get it done right.

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Step-by-Step Instructions

1

Step 1: Choose Between Traditional or Roth IRA

Traditional: tax deduction now, taxed later. Roth: no deduction, tax-free withdrawals. Consider income and tax situation.

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IRA Decision Guide Book

Detailed comparison of IRA types

$16.99
2

Step 2: Select IRA Provider

Choose brokerage like Vanguard, Fidelity, Schwab based on fees, investment options, and minimums.

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3

Step 3: Complete Account Application

Provide personal information, beneficiary, funding source, and agree to terms online or by paper.

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4

Step 4: Fund Your IRA

Transfer money from bank, rollover from 401(k), or set up recurring contributions (max $7,000/year for 2024).

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5

Step 5: Choose Investments

Select investments: target-date fund (easiest), index funds, ETFs, or individual stocks based on age and goals.

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Bogleheads Investment Guide

Book on simple, effective investing for retirement

$18.99
Investment Selection Course

Online course on choosing retirement investments

$49
6

Step 6: Set Up Automatic Contributions

Automate monthly deposits to maximize contributions and benefit from dollar-cost averaging.

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Retirement Planning Software

Tool for tracking retirement account progress

$59.99