A Roth IRA is one of the most flexible ways to invest for retirement, and opening one is easier than you might think. A Roth is a type of individual retirement account (IRA) that you fund with money you’ve already paid taxes on, so your investments have tax-free growth potential and tax-free qualified withdrawals down the road. If you want the full picture of what a Roth IRA is and how it works, we’ve got a separate guide for that. Here, we’ll focus on how to actually open one in an easy step by step guide.
What is a Roth IRA
A Roth IRA is a retirement account where you contribute with after-tax dollars, which gives your money tax-free growth potential and lets you make qualified withdrawals tax-free in retirement.
The main difference between a Roth and a traditional IRA comes down to timing. With a traditional IRA, you can deduct contributions now and pay taxes later when you withdraw. With a Roth, you pay taxes now, and qualified withdrawals later are generally tax-free.
Am I eligible for a Roth IRA?
To contribute to a Roth IRA, you need earned income for the year, and there are income ranges according to the IRS. Earned income means money from working, like wages, salary, tips, or self-employment income. Investment income and Social Security don’t count. There’s no age limit, so as long as you have earned income and qualify under the income rules, you can contribute at any age.
For 2026, here’s how the Roth IRA income phase-out ranges break down by filing status:1
| Filing status | 2026 Roth IRA modified adjusted gross income (MAGI) phase-out range |
| Single or head of household | $153,000 to $168,000 |
| Married filing jointly | $242,000 to $252,000 |
| Married filing separately | $0 to $10,000 |
If your MAGI is below the lower number, you can contribute the full amount. If it falls inside the range, your contribution limit is reduced. And if it’s above the higher number, you can’t contribute directly to a Roth that year. A traditional IRA has no income cap on contributions, which can make it a common fallback.
How much can you contribute to a Roth IRA in 2026?
For 2026, you can contribute up to $7,500 to a Roth IRA, or $8,600 if you’re 50 or older, as long as your income is within the IRS limits.2 That limit is the combined total across all of your IRAs, so if you have both a Roth and a traditional IRA, the $7,500 (or $8,600) limit applies to both together, not to each one separately. You also can’t contribute more than you earned during the year.
You have until the tax-filing deadline of the following year to make a contribution for a given tax year, which gives you a little extra runway. In practice, that means a 2026 contribution can usually be made any time up to Tax Day in 2027.
How to open a Roth IRA in 5 steps
To open a Roth IRA, confirm you have earned income within the 2026 limits, choose a provider, submit your personal details, fund the account, and select your investments. Most providers let you finish the whole process in under 15 minutes.
1. Confirm you’re eligible
Start by making sure you have earned income for the year and that your MAGI is within the Roth limits for your filing status. If your income is too high to contribute directly, a traditional IRA has no income cap on contributions, though how much you can deduct may vary.
2. Choose where to open your account
Decide whether you want a self-directed brokerage, a robo-advisor, or an automated app, based on how hands-on you want to be. A brokerage gives you the most control, a robo-advisor builds and manages a portfolio for you, and an app like Acorns automates the whole thing, including the investing decisions.
3. Provide your information
Have your personal details ready, including your Social Security number, employment information, and a bank account you’ll link for funding. Opening the account itself usually takes just a few minutes once you have these on hand.
4. Fund your account
Add money to your Roth IRA through a one-time transfer, recurring contributions, or both, up to the annual limit. Setting up automatic recurring contributions is an easy way to stay consistent without having to think about it.
5. Choose your investments
Pick the investments inside the account, either by building a portfolio yourself or choosing a pre-built one matched to your goals. This step matters, because opening the account is only the start. Your money isn’t actually invested until you choose what it goes into.
How to invest inside your Roth IRA once it’s open
Once your Roth IRA is open, you can invest the money by choosing a mix of assets, either on your own or through a pre-built portfolio matched to your goals and risk tolerance.
With a self-directed account, you choose your own asset allocation and build your portfolio from a mix of stocks, bonds, exchange-traded funds (ETFs), and other investments.
With a managed or recommended option, the provider picks a diversified portfolio for you based on a few questions about your goals and timeline. Many beginners prefer the second route, because it helps take the guesswork out of choosing individual investments.
Where should you open a Roth IRA?
You can open a Roth IRA through most banks, brokerages, robo-advisors, or investing apps, so the best choice depends on how much you want to manage yourself.
- A traditional brokerage suits people who want to pick their own investments.
- A robo-advisor or app suits people who’d rather have the portfolio built and managed for them.
If you’re just getting started and want the simplest path, an automated option can be a good fit. The good news is your choice isn’t permanent. If your needs change down the road, you can roll your Roth IRA over to a different provider without losing its tax advantages.
Does Acorns offer a Roth IRA?
Yes. Acorns offers a Roth IRA through Acorns Later. You’d start by answering a few questions, then Acorns recommends the account that best fits your situation, whether that’s a Roth, Traditional, or SEP IRA.
Once your account is open, you can set Recurring Contributions and all your contributions would be invested automatically in an expert-built, diversified portfolio of ETFs. Acorns Later accounts are also SIPC-protected up to $500,000.3
The standout feature is Acorns Later Match. Acorns Silver customers can get a 1% match on new contributions during their first year, while Acorns Gold customers can get a 3% match during their first year. If they max out their 2026 contributions at the Gold level, that’s an extra $225. To earn the match, your contributions need to stay in your Later account for 4 years.
Roth IRA benefits worth knowing
Beyond tax-free growth potential, a Roth IRA offers flexibility that other retirement accounts don’t, including penalty-free access to your contributions and no required minimum distributions.
You can withdraw the money you contributed anytime, for any reason, without taxes or penalties, because you already paid taxes on it. If you withdraw any earnings before age 59½, that could trigger taxes and penalties, though there are some exceptions.
A Roth IRA also has no required minimum distributions (RMDs). With a traditional IRA, you generally have to start taking withdrawals as early as 73, but a Roth can stay invested and keep growing for as long as you like. You can even leave the full amount to a beneficiary.
Common mistakes to avoid
The most common Roth IRA mistakes are contributing more than the annual limit and skipping the eligibility check, but both are easy to avoid. If you contribute more than the limit, the IRS generally charges a 6% tax on the excess amount for each year it stays in the account, so it’s worth tracking your total across every IRA you own.
Opening a Roth IRA is one of the most approachable ways to start investing for retirement, and you don’t need to be an expert to do it. Confirm you’re eligible, pick a provider, fund the account, and choose your investments, and you’re on your way.
Ready to get started? Open an IRA with Acorns Later.
Frequently asked questions
How do I open a Roth IRA?
To open a Roth IRA, confirm you have earned income within the IRS limits, choose a provider, share your personal details, fund the account, and pick your investments. Most providers let you complete the process online in under 15 minutes.
Am I eligible for a Roth IRA in 2026?
You’re eligible to contribute to a Roth IRA in 2026 if you have earned income and your modified adjusted gross income (MAGI) is within the IRS limits for your filing status. Single and head-of-household filers can contribute the full amount under $153,000, with the limit phasing out up to $168,000.
How much can I contribute to a Roth IRA in 2026?
For 2026, the Roth IRA contribution limit is $7,500, or $8,600 if you’re 50 or older. That total is shared across all of your IRAs, and any excess contributions could be taxed.
Where should I open a Roth IRA?
You can open a Roth IRA through a brokerage, a robo-advisor, or an investing app, depending on how hands-on you want to be. A brokerage offers the most control, while a robo-advisor or app builds and manages a portfolio for you.
Does Acorns offer a Roth IRA?
Yes. Acorns offers a Roth IRA through Acorns Later, which recommends the right IRA type for you, invests your contributions in an expert-built ETF portfolio, and adds a 3% match on new contributions in your first year with Acorns Gold.
How long does it take to open a Roth IRA?
Opening a Roth IRA usually takes about 15 minutes online. Once you have your Social Security number, employment details, and a bank account ready to link for funding, most providers let you finish the application and set up your first contribution in one sitting.
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Investment advisory products and services offered by Acorns Advisers, LLC (“Acorns”), an SEC Registered Investment Adviser. Brokerage products and services are provided by Acorns Securities, LLC, an SEC registered broker-dealer, Member FINRA/SIPC.
Acorns Later is an Individual retirement account consisting of a Traditional, ROTH or a SEP IRA selected for customers based on investor profile questionnaire answers.
Effective March 26, 2025, customers who open an Acorns Gold or Acorns Silver subscription plan or upgrades to an Acorns Gold or Silver subscription plan can opt into the Acorns Later Match feature and receive either a 3% or 1% IRA match, respectively, on new contributions made to an Acorns Later account during the first year subscribed to these subscription plans. New customers in these subscription plans are automatically eligible for the Later Match feature at the applicable 3% and 1% match rate on all contributions made during the first subscription year. All Later funds for customers must be held in an Acorns Later account for at least four years to keep the earned IRA match and all or a portion of IRA Match may be subject to recapture by Acorns if customer downgrades to a Subscription Plan with a lower monthly fee. See full terms and conditions. Terms and conditions applicable to those who opened an Acorns Gold or Acorns Silver subscription plan before March 26, 2025 and opted into Later Match are unchanged.
A distribution from a Roth IRA is federal income tax free and penalty tax free provided the distribution occurs (a) after the five-tax-year holding period, and (b) on or after age 59 1/2, on account of the death or qualifying disability of the Roth IRA owner, or for a qualified first-time homebuyer purchase.
Acorns does not provide tax or legal advice, you should consult with a tax or legal professional to address your particular situation. The 2026 contribution limits, income phase-out ranges, and other tax figures referenced are set by the IRS for the 2026 tax year and are subject to change. Please consult a qualified tax or financial professional regarding your particular situation.
The ETFs comprising the Acorns portfolios charge fees and expenses that will reduce a customer’s return. Investors should read each fund's prospectus and consider the investment objectives, risks, charges and expenses of the funds carefully before investing. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.
Automatic investing does not ensure a profit or protect against losses. It involves continuous investing regardless of fluctuating price levels.
Stacy Rapacon is a freelance writer and editor, who has specialized in personal finance topics— including investing, saving for retirement, credit, family finances and financial education—since 2007.
