How to Open an IRA in 2026: Step-by-Step

Ever feel like you want to start investing… but you're stuck at the "okay but what button do I click?" stage? In this episode of From Middle Class to Millions, Shannon breaks down the step-by-step process for opening and funding an IRA in plain English - using Fidelity as the example (but the steps are similar at Vanguard and Charles Schwab). You'll learn the difference between employer-sponsored retirement plans, 401(k), 403(b), 457(b), and the TSP (Thrift Savings Plan), and why you can't open those on your own unless your workplace offers them (often with an employer match and vesting schedule). Then Shannon explains how Traditional IRA vs Roth IRA works, including tax benefits, tax-free growth, withdrawal rules at age 59½, and the 2026 contribution limits ($7,500 / $8,600 if 50+). Most importantly, she walks you through how to: Open a Roth IRA or Traditional IRA Link your bank account Transfer money into the IRA Avoid the common mistake of leaving money in cash Invest in a low-cost S&P 500 index fund (example: FXAIX) Set up automatic investing (aka "pay yourself first" + dollar-cost averaging) If you're searching for how to start investing, investing for beginners, retirement planning, or how to build wealth, this is your play-by-play. Want personalized help choosing the right account and strategy? Shannon invites you to book a call and start 2026 off right.