Fidelity Roth IRA With an ITIN

The IRS does not require U.S. citizenship or a Social Security Number to open an IRA. Any person with a valid taxpayer identification number and earned income meets the eligibility requirement. According to the Institute on Taxation and Economic Policy, undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022 — at a 26.1% effective rate comparable to the median U.S. household. A Roth IRA at Fidelity is one of the most accessible ways for ITIN holders to put those tax-compliant earnings to work for retirement.

Why Should ITIN Holders Prioritize a Roth IRA?

ITIN holders should prioritize a Roth IRA because they have no Social Security safety net, so retirement savings become their entire retirement income. A Roth IRA offers 100% tax-free withdrawals, no required minimum distributions at age 73, and penalty-free access to your original contributions anytime. For 2026 you can contribute up to $7,500 ($8,600 if 50+).

• You have no Social Security safety net. ITIN holders who never work under an SSN cannot collect Social Security retirement benefits. Your retirement savings will be your entire income in retirement. That makes tax-free growth non-negotiable.
• Withdrawals are 100% tax-free. You pay taxes on your contributions now (with money you've already taxed), and every dollar you withdraw in retirement comes out tax-free — including all the growth.
• No required minimum distributions (RMDs). Unlike a 401(k) or Traditional IRA, a Roth IRA never forces you to withdraw. If you don't need the money at 73, it keeps compounding tax-free.
• Access your contributions anytime. Your original contributions (not the gains) can be withdrawn penalty-free at any time. This gives you flexibility if you ever need emergency access to the money.

How Do I Open a Fidelity Roth IRA With an ITIN?

To open a Fidelity Roth IRA with an ITIN, start the application at Fidelity.com and, at the identity verification step, Fidelity connects you with a representative by phone to confirm your identity using your ITIN. There is no minimum to open the account, and the 5-step process below takes most people under 30 minutes:

How Much Should I Contribute to My Fidelity Roth IRA?

The 2026 Roth IRA annual contribution limit is $7,500 for investors under age 50, or $8,600 if you are 50 or older. You can hit the cap automatically with $288 every two weeks across 26 pay periods, or $625 on the 1st of each month. Here is how to break it down:

If you are paid biweekly (every two weeks), $288 per paycheck is the number to hit. Set this up as an automatic bank transfer on payday so the money moves before you have a chance to spend it. At $288/paycheck, you'll contribute $7,488 for the year — just $12 under the cap, which you can top off in December.

If you are paid monthly or prefer to think monthly, $625/month hits the exact $7,500 annual limit. Set a recurring transfer on the 1st of each month.

What Happens If I Max Out My Roth IRA Every Year?

Maxing out your Roth IRA every year can grow into substantial tax-free wealth. The table below assumes a 7% average annual return — a commonly used long-term stock market estimate — and contributing $7,500/year. After 30 years, $225,000 in contributions could grow to roughly $754,000. Actual returns are not guaranteed and these figures are for illustration only.

At 30 years in this illustration, contributions total $225,000 with an estimated value of roughly $754,000 — with $529,000 in gains that you would never pay taxes on in a qualified Roth IRA withdrawal. Actual results depend on market performance and are not guaranteed. That potential tax-free growth is especially relevant for ITIN holders who may not have Social Security income in retirement.

What Should I Invest In With My Roth IRA?

Once money lands in your Roth IRA, it sits as cash until you buy funds. A simple, proven strategy used by many long-term investors is a two-fund portfolio split 80% into a U.S. total market fund (FSKAX) and 20% into an international fund (FTIHX). Both have rock-bottom Fidelity expense ratios near 0.015% to 0.06%.

At Fidelity, the best versions of these funds have extremely low fees — among the cheapest index funds available anywhere:

80% FSKAX — U.S. Total Market 20% FTIHX — International

Why 80% U.S. / 20% International?

This split is close to the actual global market cap weight — meaning it reflects roughly how much of the world's total stock market value is American (~60–65%) versus international. The 80/20 skews slightly toward the U.S., which is a reasonable tilt given that U.S. markets have historically had stronger long-term returns and most ITIN holders' expenses are in U.S. dollars.

You don't need to overthink the exact split. 70/30 or 80/20 — either is a solid, diversified portfolio. The more important thing is picking a number, sticking to it, and rebalancing once a year.

How to Rebalance Once a Year

Over time, the U.S. and international portions of your portfolio will drift from your target as one outperforms the other. Once a year (January works well), check your allocation:

• Log in to Fidelity → your Roth IRA → Positions
• Check the current percentage in FSKAX vs FTIHX
• If FSKAX grew to 85%, redirect new contributions to FTIHX until you're back to 80/20
• Or use Fidelity's "Rebalance" tool to sell/buy back to your target

Inside a Roth IRA, rebalancing has no tax consequences — you can buy and sell freely without triggering capital gains tax. This is one of the biggest advantages of doing this inside a Roth rather than a taxable account.

Should I Choose a Roth IRA or Traditional IRA?

Most ITIN holders should choose a Roth IRA over a Traditional IRA. A Roth gives fully tax-free withdrawals in retirement, never forces required minimum distributions at age 73, and lets you pull out contributions anytime. Both share the same 2026 combined limit of $7,500. A Traditional IRA only makes sense if your income is high now and lower in retirement.

For most ITIN holders, Roth IRA wins. The combination of tax-free withdrawals in retirement + no required minimum distributions + the ability to access contributions if needed creates the most flexibility for someone without a Social Security backstop.

What Are the Roth IRA Income Limits for ITIN Holders?

Roth IRA income limits apply to ITIN holders the same as anyone else. For 2026, single filers can make a full contribution with modified adjusted gross income under $150,000, phasing out between $150,000 and $165,000. Married couples filing jointly get the full amount under $236,000, phasing out up to $246,000.

• Single filers: Full contribution if MAGI is under $150,000. Phase-out from $150,000–$165,000. No contribution above $165,000.
• Married filing jointly: Full contribution under $236,000. Phase-out from $236,000–$246,000.

If your income is above the limit, look into a backdoor Roth IRA — a legal strategy where you contribute to a Traditional IRA (no income limit) and then convert it to Roth. Consult a tax professional before doing this as it requires careful execution.

Does Fidelity Accept ITIN for a Brokerage Account?

Yes — Fidelity accepts ITIN for taxable brokerage accounts, including individual and joint accounts. The online application includes a Tax Identification Number field where you enter your ITIN in place of an SSN. There is no minimum deposit to open, and ITIN holders who meet the IRS substantial presence test (31 days in the current year plus 183 weighted days over the past 3 years) are treated as U.S. residents for account purposes.

A taxable brokerage account at Fidelity gives you access to the same stocks, ETFs, and mutual funds available to any account holder — with no annual contribution limits. Unlike a Roth IRA, gains and dividends in a taxable account are subject to capital gains tax each year, so it works best as a complement to your IRA once you've maxed that out. See how to invest with an ITIN for a full comparison of taxable vs. retirement accounts.

Does Fidelity Withhold Taxes on My ITIN Account?

Fidelity may apply 24% backup withholding on dividends and capital gains proceeds if your ITIN cannot be verified against IRS records. To prevent withholding: keep your ITIN current (ITINs expire if unused for 3 consecutive tax years), and complete the W-9 certification during the account application to certify your tax status. If backup withholding is applied in error, you reclaim it as a credit when you file your federal tax return.

Backup withholding applies across all Fidelity account types — brokerage, Roth IRA, and Traditional IRA alike. The most common trigger is an expired ITIN. If you haven't filed a tax return recently, check your ITIN status at IRS.gov before opening the account. Renewing an ITIN takes 7–11 weeks by mail.

Can ITIN Holders Buy Fidelity ZERO Funds?

Yes. Fidelity ZERO funds — FZROX (Fidelity ZERO Total Market Index Fund) and FZILX (Fidelity ZERO International Index Fund) — carry a 0% expense ratio and are available in all Fidelity taxable brokerage and IRA accounts, including accounts opened with an ITIN. There is no minimum investment. The 0% expense ratio means you pay $0 in annual fees regardless of your balance.

The trade-off is portability: ZERO funds are exclusive to Fidelity and cannot be transferred in-kind to another brokerage. If you ever move your account to Vanguard or Schwab, you would need to sell first — which triggers a taxable event in a brokerage account. For a Roth IRA you plan to keep at Fidelity long-term, that distinction may not matter. For a taxable account where you might want flexibility, FSKAX and FTIHX are the portable alternatives at near-zero cost (0.015% and 0.06% respectively).

Frequently Asked Questions