IRA Guide

Open an IRA Account

Daniela Pylypczak-Wasylyszyn Jul 06, 2015

Opening an IRA account is easier than you may think. Use our handy guide below to get started with an IRA today!

Make Sure You’re Eligible for an IRA

We recommend Roth IRAs for most investors (as well as Traditional IRAs in some cases), both of which have strict eligibility requirements. A good first step is to check out the Eligibility Requirements for Roth IRAs and Eligibility Requirements for Traditional IRAs.

Choose the Right IRA for You

You can compare Roth IRAs vs. Traditional IRAs by consulting our IRA comparison table.

Select a Broker to Open an IRA With

A common misconception about IRAs is that they’re a special type of investment product; in truth, an IRA is simply a tax designation. That means you can open an IRA with just about any financial institution, but we recommend using online discount brokers because they charge the lowest account maintenance fees and offer cheap online trades.

Here are some top brokers for you to consider:

Fidelity

Scottrade

TD Ameritrade

Charles Schwab

Fund Your IRA Account

Once you’ve established an IRA with a broker, you’ll need to fund it before you begin investing. Be sure to adhere to the contribution limits for the IRA you’ve selected: for 2015, Traditional and Roth IRAs allow for a maximum of $5,500 contribution, or $6,500 if you’re 50 years of age or older.

Compare Traditional vs. Roth IRAs »

Make Your Investments

How you invest within your IRA is up to you, but your broker may also limit your investing options. Of course, we recommend dividend-paying stocks as the best possible way to invest with an IRA. Remember, dividends and capital gains generated are allowed to grow tax-free within your IRA!