Opening an IRA (Individual Retirement Account) on Fidelity is a smart move for anyone looking to secure their financial future. Whether you’re saving for retirement with a Roth IRA, Traditional IRA, or transferring funds through a Rollover IRA, Fidelity makes the process relatively straightforward. This guide will walk you through every step on how to open an IRA on Fidelity—from selecting the right type of IRA to funding your account and even making your first investment.
Why Open an IRA on Fidelity?
Fidelity is one of the most trusted financial service providers, known for its user-friendly platform, low fees, and robust investment options. With an IRA, you can grow your retirement savings with tax advantages that vary depending on the type of account you choose.
Step 1: Visit Fidelity.com
To begin, open your browser and go to fidelity.com. Once the homepage loads, locate and click on the “Open an Account” button—usually found in the top menu or prominently on the main page.
Step 2: Choose the Type of IRA
On the next screen, you’ll be prompted to select the type of account you want to open. Under the “Retirement and IRAs” section, choose “Open an IRA Account.”
Before proceeding, it’s crucial to understand the three types of IRAs Fidelity offers:
- Traditional IRA: Contributions may be tax-deductible, and taxes are paid upon withdrawal during retirement.
- Roth IRA: Contributions are made with after-tax dollars, but withdrawals are tax-free if certain conditions are met.
- Rollover IRA: Used to transfer funds from an employer-sponsored retirement plan (like a 401(k) or 403(b)) into an IRA.
Tip: If you’re unsure which account suits your needs, Fidelity offers educational resources and comparison tools.
Step 3: Decide Between Roth and Traditional IRA
While this guide focuses on opening a Roth IRA, the steps are the same for opening a Traditional IRA.
Quick Comparison: Roth vs. Traditional IRA
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Contributions | After-tax | Pre-tax (may be deductible) |
| Withdrawals | Tax-free (qualified) | Taxable |
| Income Limits | Yes | No |
| RMDs (Required Minimum Distributions) | None | Begin at age 73 |
Choosing between the two largely depends on your current tax situation and retirement goals.
Step 4: Start the Application
Click “Open a Roth IRA” (or “Traditional IRA” if preferred). Fidelity will then ask whether you’re an existing customer. If you are, the process will be faster because your personal information is already on file. If not, proceed by selecting “No” and continue to the full application.
Step 5: Enter Your Personal Information
You’ll be required to enter the following:
- Full name
- Social Security Number
- Date of birth
- Email address
- Phone number
- Residential address
After inputting this information, click Next to continue.
Step 6: Provide Employment Information
Fidelity, like most financial institutions, must gather certain regulatory information. You’ll be asked about your:
- Employment status
- Occupation
- Employer’s name and address
You’ll also need to answer industry compliance questions related to your financial affiliations or investment knowledge. If none apply, simply select “None Apply.”
Step 7: Review and Confirm Your Details
Before submission, you’ll see a summary of all the information you provided. Review it carefully—this is your last chance to correct any errors.
Next, read through Fidelity’s agreements and disclosures. Once you agree to the terms and conditions, click “Open Account.”
Step 8: Verify Your Identity
If you didn’t previously have a Fidelity account, you’ll need to verify your identity. Provide:
- Full name
- Date of birth
- Last four digits of your Social Security Number
Fidelity will send a verification code via text message. Enter the code within 30 minutes to proceed.
Step 9: Create Login Credentials
Once verified, you’ll be prompted to:
- Choose a username
- Create a secure password
After setting up your credentials, log in to your new account. Fidelity may ask for another verification code at this point to enhance security.
Step 10: Fund Your New IRA
Congratulations—your IRA is open! But it’s not useful until it’s funded. Fidelity provides multiple funding options:
- Link a Bank Account: The fastest and most convenient method. You can transfer up to $250,000 (though IRA contribution limits still apply).
- Direct Deposit
- Transfer from Another Firm
- Transfer from Another Fidelity Account
- Deposit a Check
- Wire Transfer
Important: Roth and Traditional IRAs have annual contribution limits. For 2025, you can contribute up to $7,000 (or $8,000 if you’re 50 or older).
Choose your preferred method and transfer funds into your account.
Step 11: Access Your Fidelity Dashboard
Once funded, return to the Fidelity dashboard to see all your accounts. If you have multiple accounts (e.g., a brokerage account and a Roth IRA), you’ll see them listed here. You’ll be able to view:
- Account balances
- Asset allocation
- Available cash for trading
Step 12: Make Your First Investment
Let’s walk through buying your first ETF or stock using your new IRA (or brokerage) account.
- Click on “Trade” in the upper left corner (it’s slightly hidden).
- A trade window will pop up—move it around if needed.
- Select the account you want to trade from.
- Choose a stock or ETF. A common example is SCHD (a popular dividend ETF).
- Set the action to “Buy.”
- Choose quantity and order type (e.g., market or limit).
- Click “Preview Order” to review the trade.
- If all looks good, click “Place Order.”
You’ve now made your first investment using Fidelity!
Step 13: Selling Assets (When Needed)
Selling is just as easy:
- Click “Trade” again.
- Choose the account and asset.
- Select “Sell” as the action.
- Enter the number of shares.
- Choose market or limit order.
- Preview and place your order.
Final Thoughts
Opening an IRA with Fidelity is a straightforward process that can be completed in under an hour. The most time-consuming part is deciding which type of IRA is right for your financial situation—but that’s an important decision worth the research.
By following this guide, you’ll be able to:
- Open a Roth or Traditional IRA
- Fund your account securely
- Start investing for your retirement
Fidelity also provides educational tools, customer support, and investment research to help you make the most of your retirement journey.
FAQs
Can I have both a Traditional and a Roth IRA?
Yes, but your combined contributions to both accounts cannot exceed the annual limit.
How often can I trade within my IRA?
You can trade as often as you like, but be mindful of long-term investment strategies and transaction fees.
Is there a fee to open an IRA with Fidelity?
No, Fidelity does not charge any fees to open or maintain an IRA.
