Opening a Roth individual retirement account requires the owner to set aside money to put towards retirement savings, pick a financial institution to establish the Roth IRA account and satisfy the financial institution's new-account requirements, notes the Retire by 40 website. The owner can then choose an investment plan.Continue Reading
The Internal Revenue Service allows anyone to set up a Roth IRA account to save for retirement as long as the person meets the agency's eligibility requirements, which typically change from year to year. The IRS also sets limits on the amount of money that can be contributed to a Roth IRA per year. For example, in 2013, a married couple filing jointly could contribute the maximum to a Roth IRA if their modified adjusted gross income was less than $178,000. Single taxpayers with income of up to $112,000 could contribute the maximum, while those with income up to $127,000 could contribute a reduced amount. Anyone else was ineligible to use a Roth IRA, notes Kiplinger.
Setting up a Roth IRA account is about as simple as opening a bank account. Most banks, brokerage firms and other financial institutions offer Roth IRA accounts. New-account requirements typically include the account holder's name, Social Security number, date of birth, address and employer information. The account holder has to show identification and fund the account with cash or a bank transfer. Because it is a retirement account, the account holder must also provide the name, address, Social Security number and date of birth of at least one beneficiary, notes the Retire by 40 website.Learn more about Investing