How to Open a Roth IRA in 5 Easy Steps

by | Nov 1, 2022 | Roth IRA | 21 comments

How to Open a Roth IRA in 5 Easy Steps




Open a Free Roth IRA with M1 Finance:

5 Steps to Opening a Roth IRA.
1. Determine eligibility. If you’re under the age of 50 and you qualify you can contribute the full amount of $6,000 (2019 contribution limit). If you’re 50 or over you can contribute $7,000.

2. Open your account. M1 Finance is a great option.
Currently, you can open a Roth IRA with M1 Finance completely free (no fees) with a minimum balance of $500. Many brokerages require you to have a minimum opening deposit of $1,000.

3. Decide what to invest in: Depending on where you open your Roth IRA you’ll have the option of buying assets, stocks, ETFs.

4. Fund your account. You can choose to invest incrementally or sweep the full amount into the account once per year. Just be sure to do so before the deadline- which is usually tax filing day. (April 15th).

5. Keep contributing and let it grow. As long as you qualify you can max out a Roth every year. The money will grow tax-free and you’ll be able to withdraw in retirement, also tax-free!

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21 Comments

  1. Samanthwalter Archie

    I watch several YouTube videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands

  2. Br Cleaning Company

    If i start one right now and i put 6k in it right away do i buy stocks only from that 6k or are the additional stocks and whatever i want to invest in it seperate??? How do i not over contribute?

  3. Fatima_AspiringRN

    Thank you…this video was very informative. I intend to open a ROTH IRA account and I wasn't sure how to start.

  4. Empress Aset

    Thank you so much for this video, it was very helpful. I have two questions for you. 1. Can self-employed people open up Roth IRA account? Also, the $6000 is that the maximum or minimum amount that needs to be deposited into that account annually?

  5. hidfig fig

    I just opened my first Roth IRA account with M1. I personally just want to grow my money and not invest it just yet do you have to invest your Roth IRA money? Will it still grow without investing it into stocks right away?

  6. Zilla

    I have one question the 6000 contribute is it for the one time until retirement or 6000 every year? Thanks your videos help me learn alot

  7. Britt R

    I am very new to investing besides my 401K and Savings account. What do you think of Charles Schwab? In another video you recommended the Personal Capital app which is awesome! Do you put the $200 in their high-yield account or do you have another account in mind. I would love to start putting money away for property down the line, and want to start saving now.

  8. Kurious Kayla

    Hi Nicole! Love your channel and what you have to share on finances. I would love to connect with you offline and challenge the idea that there are better ways to Grow money TAX-FREE than even a ROTH to build wealth. I've to help break that down for you to also share with your following.

  9. Thelma Espinel

    Thank you Nicole as always great video

  10. Sharon W

    Very helpful!

  11. A G

    How do I get a business loan?

  12. Sandra Mills

    Thank you for providing great information and resources.

  13. Sarah D'Amico

    Thank you for your wording choice around a spousal IRA. I, the wife, am the working spouse and my husband is a stay-at-home parent. I was expecting you to assume that the stay-at-home parent would be female and the working spouse would be male. It was so refreshing to hear you use gender neutral terms on both sides. THANK YOU!!

  14. Elizabeth W

    Thanks Nicole! I’m still on baby step 2, so I’m not ready for this just yet. However, I know I’ll be there soon! So, my question is can you only have one Roth IRA account or can you have multiple that you’re contributing to as long as each one doesn’t go over the $6000 annual contribution limit? Thanks in advance!

  15. Audelia Cee

    I have my Roth IRA with M1 Finance. I love it!:)

  16. FrontPorchRockingChair

    I have my Roth IRA with Vanguard as well as a taxable brokerage account with M1. I am a happy customer of both companies and have nothing but good things to say about them.

  17. SaVaughan

    Thanks for sharing! One question, do you have to meet the $6000 max by April 15th in order to avoid a penalty or are you able to contribute as much as possible by the deadline?

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