Roth Start-Out Amount

One listener wants to start a Roth IRA, but isn't sure on how much it takes to open one.

QUESTION: Listener asks how much you need to open a Roth IRA.

ANSWER: The minimum amount that your account holder will allow. You can open a Roth IRA account for just a few dollars at a bank; and a mutual fund company will let you open one for about $250. Other places will open them for $500 or $1,000. The law doesn’t limit it … you could open one for as little as $1, but most places won’t open them for that little.