Our guide to opening a Roth IRA

Watch our live cast below and open an account today.

 

Roth IRA Basics

What is a Roth IRA?

Roth Individual Retirement Accounts (Roth IRAs) are a powerful retirement savings tool. Counter to Traditional IRAs, Roth IRAs have a tax advantage that allow you to grow your retirement savings tax-free and withdraw the funds tax and penalty-free inside certain parameters.

As part of our planning process, we can help you decide which retirement account fits your financial goals. We’ll work with you to help manage and fund your accounts.

 

Do I qualify for a Roth IRA? 

In 2022, you can open and fund a Roth IRA if your earned income is under $129,000 if you are filing single or under $204,000 if your are married filing jointly.

You can open and fund a Roth IRA even if you are covered by a retirement plan through your employer. Contributions to a Roth IRA are made with after-tax dollars so your contributions are not tax deductible.

 

How will my Roth IRA affect my taxes?

This is where the Traditional IRA and Roth IRA are different. Roth IRA contributions are made with after-tax dollars as payroll and income taxes have already been paid for from your gross earnings. Your account grow tax-free and you pay no taxes on those dollars when you withdraw them after age 59.

 

Ready to open an account?

Get started by clicking on the secure website here. Tell us a few things about you and we’ll start optimizing your portfolio. Scroll down for a step by step walk through.

 

Step 1

betterment-step1-v3.jpg

Input your retirement status. Click Continue.

 

Step 2

betterment-step2.jpg

Input your age. Click Continue.

 

Step 3

betterment-step3.jpg

Input your annual income. If retired, calculate your Social Security. Click Continue.

 

Step 4

betterment-step4.jpg

 
Select the “Retirement” goal in the middle.
 
Step 5
betterment-step5.jpg
Select "Roth IRA." Click Continue.
 
Step 6
betterment-step6.jpg
Review your recommended portfolio. Click Continue. If you’re not sure this is the right portfolio for you, schedule an investing call with one of our member advisors.
 
 
Step 7

betterment-step7-v3.jpg

Now, create an account using your email address. Please have your SSN handy.

 
Step 8
How to link a funding source
  1. Login to your Account Here
  2. Click “Deposit” in the top right corner to start this process.
  3. Click on Your ROTH IRA
  4. Connect a bank account. Note this will ask you for your Login Credentials.
  5. Select Frequency and Amount
  6. Review and Submit
Was this article helpful?
0 out of 0 found this helpful