HOW TO OPEN A ROTH IRA - ANYONE CAN DO IT!

Here’s a step-by-step guide to opening a Roth IRA with Vanguard (as of 2025):

🧾 1. Check if You’re Eligible

Before you start:

• You must have earned income (like wages or self-employment income).

• Your modified adjusted gross income (MAGI) must be below certain IRS limits.

  • For 2025, single filers phase out between $146,000–$161,000.

  • For married filing jointly, between $230,000–$240,000.

🖥️ 2. Go to Vanguard’s Website

• Visit: https://investor.vanguard.com

• From the top menu, select “Retirement” → “Open an IRA”.

• Choose “Roth IRA” when prompted.

🧍 3. Create or Log In to a Vanguard Account

• If you’re new, you’ll need to create a Vanguard online account.

• Provide:

  • Your Social Security number

  • Employment information

  • Bank account (for funding)

  • A valid email address and phone number

💰 4. Fund Your Account

You’ll need to start your Roth IRA with a contribution or transfer:

• Bank transfer (ACH) – easiest and fastest

• Rollover/transfer – from another IRA or 401(k) (if applicable)

• Minimum investment – depends on the fund; most Vanguard index funds require $1,000–$3,000, but you can start with less using Vanguard ETFs.

📈 5. Choose Your Investments

You’ll be asked to pick how to invest your contributions. Common options include:

• Target Retirement Funds – automatic mix based on your age

• Index Funds – like Vanguard Total Stock Market (VTSAX) or S&P 500 (VFIAX)

• ETFs – lower minimums, e.g., VTI, VXUS

You can also skip this step and choose investments later.

✅ 6. Review & Submit

• Double-check all information.

• Review contribution limits (2025 limit: $7,000, or $8,000 if you’re age 50+).

• Submit your application.

📬 7. Confirmation & Next Steps

• You’ll receive a confirmation email from Vanguard.

• Once funded, you can manage your Roth IRA through your online dashboard—set up automatic contributions if desired.