How to Open an IRA Online: Your Guide

Did you know that Baby Boomers, men, non-Hispanic whites, and Asians are the demographic groups that are most likely to own retirement accounts? The median IRA (Individual Retirement Account) value was $30,820. 

Are you starting to get worried about your retirement and want to start saving money for it? An IRA retirement account is a great way to do so, because of many tax benefits. Learn how to open an IRA Roth online in a few easy steps by reading the article below. 

What Kind of Account Will You Open?

Opening an IRA online is easier than ever because of the vast multitude of online brokers available. And IRA qualifications aren’t at all harsh – anyone with an earned income can open and contribute to an IRA.

But first, you need to figure out what kind of IRA account you want to open.

Do you wish to choose your investments yourself, or if you want help in doing so using a Robo-advisor? 

Choose Where You Want to Open Your IRA

Most people open an IRA account at the same bank or financial institution where they do all their other personal banking. That makes it easy to transfer funds or move funds around. 

But that doesn’t necessarily make it the best place to open an IRA. If you are going to be making all your investment decisions yourself, consider a low-fee or low-commission brokerage account to open your IRA account. 

Otherwise, you could potentially open an IRA account with a financial institution that gives you additional help and advice about investments. 

Open an Account at the Institution

Once you decide on the institution where you will open the IRA account, you will go to their website online and sign up for an IRA account. It’s as easy as putting in all your details, and voila, you are the proud owner of an IRA account. 

Figure Out Your Contribution Limits

Depending on your income range, there are certain annual contribution limits that the government puts in place. This might change from year to year, so you will want to keep on top of that. A quick Google search will tell you exactly what your contribution limits for this year are, so make sure to stay within your limits to avoid paying penalty fees. 

Fund the Account and Decide What to Invest Into

It will be easy to fund your account no matter if it’s at your bank or with another brokerage. All you need is the account number and routing number. 

You could even set up automatic transfers on a regular cadence, every two weeks or every month, depending on how often you get paid. 

How to Open an IRA Online – It’s Easier Than You Think

It’s easy to manage your IRA online account, but first, you have to open it and fund it. If you had been fearful of taking these steps until now, let this be the push that gets you to open an IRA online.

And then you can show others how to open an IRA online as well, so everyone in your family can have a solid retirement setup for them. If you wish to read more financial content like this, visit our website.