A Roth IRA is a retirement plan that many American workers opt for, and funds contributed by individuals may be matched by employers. Figuring out where to open your Roth IRA takes a bit of research to determine where you can achieve the most benefits, such as company or employer contributions, whether or not you have the option to invest in stocks or mutual funds and what types of fees are attached to the account. Roth IRAs are different frrom traditional IRAs in that Roth contributions are made using what are known as after-tax dollars, making earnings and qualified withdrawals from Roth IRAs tax-free.
Banks
Many major banks offer Roth IRA accounts, including but not limited to Wells Fargo, Bank of America, First National Bank and others. Although annual custodial fees may accrue to be less than interest earned, depending on the balance in the IRA, ask your local bank where you have accounts about Roth IRA offers and whether or not you qualify for perks such as higher APY (annual percentage yield) depending on your current bank accounts or balances for the IRA.
Credit Unions
Many credit unions offer Roth IRAs, but check to see whether there is a cap on limits and contributions on an annual basis. Also determine how credit union Roth IRA investments are made, as some restrict their investments to certificates of deposit. Many credit unions will convert or roll over traditional IRAs to a Roth IRA.
Investment Companies
Companies such as ING offer Roth IRAs for minimal fees. Vanguard, Fidelity and T. Rowe also offer Roth IRAs for very minimal annual fees (about $10 a year). Some have higher initial minimum deposits than others (Vanguard requires $1,000 investment in their Star Fund and a minimum contribution of $100 a year into the account, while Fidelity requires a $2,500 minimum initial investment deposit, unless you are able to commit to a $200-a-month automatic deposits). The key is to ask about initial deposit requirements, monthly or yearly deposit requirements and various perks you may receive if balances go over a certain amount.
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