5 Places to Open a Roth IRA When You're Self-Employed (And Why You Should)

October 7, 2022

Few things are more boring than investing for retirement.

You're taking money that you could spend today, and putting it into an account that you can't touch for 30+ years..

🥱😴

However.. it's a necessity.

Unless you plan on working forever, you'll have to invest at least a little bit of money throughout your life.

Now, there are so many different kinds of investment accounts out there which is why today, we're only focusing on one of them:

The Roth IRA

Why the Roth?

Because it's one of the easiest accounts to open and it's also one of the most impactful.

A Roth IRA lets you invest money that has already been taxed and once you reach age 59 1/2, you can have that money completely tax free.​

For example: If you put in $500 to a Roth IRA today and it grew to $1 million, you could withdraw that entire $1 million and not have to pay taxes on any of it.

Pretty cool, right?

Okay.. maybe it's not "cool", but it's impactful.​

Here's an example of investing $6,000/year (assuming 8% returns), and growing into almost $300,000, completely tax-free:

If you haven't opened a Roth IRA yet, these are a few places I recommend:​

Vanguard

Fees: $0, individual investment fees vary

Account minimums: $0

Where to open: investor.vanguard.com/ira

Fidelity

Fees: $0, individual investment fees vary

Account minimums: $0

Where to open: fidelity.com/retirement-ira/overview

TD Ameritrade

Fees: $0 per trade, individual investment fees vary

Account minimums: $0

Where to open: tdameritrade.com/account-types/retirement​​​

Ellevest

Fees: $1-9/month

Account minimums: $0

Where to open: ellevest.com/investing​​

Betterment

Fees: .25% AUM (read more about investment fees)

Account minimums: $0

Where to open: betterment.com/ira-and-401k/

A few things to keep in mind with Roth IRAs

• Annual contribution limits for a Roth IRA: $6,000 ($6,500 in 2023)

• Income limits for contributing to a Roth IRA: $140,000 for singles and $208,000 for married filing jointly

• It is possible to contribute to a Roth if your income is over these limits through the "backdoor" Roth IRA strategy

• You can withdraw contributions at any time penalty & tax-free because that money has already been taxed (like a savings account)

Also read: How to Open a Roth IRA

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