Never opened a Roth IRA? 45 is not too late.
Start at 45 and you still get about 14½ years of tax-free growth before you can withdraw freely at 59½. Here's what that could look like for you, and exactly how to start.
New: read a free chapter of Roth with AI, the step-by-step eBook.
What could you have by 59½?
Younger than 45? Slide the age down and see what starting early does. A Roth IRA has no minimum age, just earned income (a parent can open a custodial Roth for a working teen).
Which return to pick? About 4% is cautious (mostly bonds), 6% is a middle-of-the-road mix, and 8–10% assumes mostly stocks. U.S. stocks have averaged roughly 10% a year over the long run (about 7% after inflation), with big ups and downs along the way. Past results don't guarantee future returns.
An illustration, not a promise. It assumes the same deposit every month and a steady average return. Real markets go up and down, and returns are never guaranteed.
The Portfolio Ship Simulator
Picture your investment mix as a ship: a sturdy frame, a solid hull and sails for growth. Try real example holdings, balance the deck, and see how spreading out, or piling up, changes the ride. Practice mode only, no real money.
Try the simulatorThe short version
You pay tax on the money now. After that it grows tax-free, and once you're 59½ and the account is at least 5 years old, withdrawals are tax-free too. There are no required withdrawals during your lifetime, which makes it a flexible pot of money for later.
You can also take out what you contributed (not the growth) at any time without tax or penalty. That makes it less scary to start for people who worry about locking money away.
The numbers to know
- You need earned income (a paycheck or self-employment) at least equal to what you put in.
- The limit is shared across all your IRAs, Roth and traditional combined.
- You can make 2026 contributions until the tax filing deadline in April 2027.
- Earnings come out tax-free once you're 59½ and the account has been open 5 years. Start by 54 and you clear both by 59½.
Open one this week
Check that you qualify
Look at last year's tax return. If your income is under the ranges above and you have earned income, you're in.
Pick a broker
Any major broker offers a Roth IRA with no account fee: Robinhood, Vanguard, Fidelity, Schwab and others. Choose one whose app you'll actually open.
Open the account and link your bank
It takes about 15 minutes. Make sure you pick "Roth IRA", not a regular brokerage account.
Set an automatic monthly deposit
Pick an amount from the calculator and automate it. Automatic beats willpower.
Invest the cash
Money sitting in the account as cash doesn't grow much. Many beginners choose a low-cost broad index fund or a target-date fund. Research what fits you.
Roth with AI
Easy Steps to a Tax-Free Future, with AI by Your Side. How to open a Roth IRA, set up a monthly plan, and use AI as a helper, not the boss, so you stay in charge of every decision.
by Frank Tokyen
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I opened mine with Robinhood
If you'd like to use Robinhood too, signing up through my link gets you free sign-up stock once you link a bank. Robinhood also runs a match on IRA contributions; check their current terms in the app.
Open an account with my linkDisclosure: this is a referral link. If you open an account through it and make a deposit, I earn a stock reward from Robinhood. You don't pay anything extra, and the guide above applies to any broker you choose. US residents only.
Have a question?
Leave it as a comment or message on the post where you found this guide. I read and answer them myself.