Our hands-off Roth IRA accounts are robo-advisors. These are platforms will help you assess your risk tolerance and determine your investment time horizon, and then it manages your portfolio over time to maximize return potential. Depending on your investment goals and individual preferences, either could be a great choice.

3 Featured Picks From Our Best Roth IRA Accounts

• Robinhood: Standout Roth IRA mobile experience 
• SoFi Active Investing: Great Roth IRA for self-directed investing 
• Fidelity: Overall high-quality IRA experience

• Fees and commissions: Most online brokers offer no commission fees on stock trading, but may have other fees, such as account transfers. When looking for the best Roth IRA accounts, don't forget to compare fee schedules.
• Mutual funds: If you're planning to invest in mutual funds, check that the broker offers a wide selection of them in Roth IRA accounts and on a no-transaction-fee (NTF) basis.
• Platform/app: This is where brokers often differ immensely. Some cater to hands-on, active investors by loading trading platforms with tools, charts, and resources. Others build no-frills platforms for investors who value simplicity. If you're unsure where you lie on that scale, test drive a few platforms (most will let you do this) to see which one you like best.
• Resources: If you want to learn about investing as you're doing it, look for platforms with fully-stacked libraries or access to third-party research.

Best Roth IRA Comparison

A Roth IRA is an individual retirement account (IRA) that lets you contribute after-tax dollars and enjoy the power of compound interest tax-free. That means you don't have to pay taxes on earnings in a Roth IRA, so long as you take distributions after you hit 59 1/2 years old.

Roth IRA accounts have annual contribution limits set by the IRS, which are usually lower than 401(k)s. You can invest in a number of securities within a Roth IRA, such as stocks, bonds, mutual funds, or exchange-traded funds (ETFs).

Learn more: Roth IRA benefits

A Roth IRA works like this: You contribute post-tax dollars (money you've already paid taxes on), then invest that money in whatever securities fit your investing strategy, like stocks or mutual funds. At any time, you can sell those securities for a profit and you don't have to pay capital gains taxes, so long as it's held within your Roth IRA. Better yet, when you turn 59 ½, you can withdraw your earnings tax-free, since you already paid taxes on your contributions.

Contributing up to the annual limit will certainly give your Roth IRA a good foot forward, but your selection of investments is the real engine driving your account's long-term growth. Since your account isn't bogged down by capital gains taxes, you can take full advantage of growing your money by compound interest using a combination of stocks, ETFs, mutual funds, bonds, and other securities.

For tax year 2023, contributions to your IRA accounts cannot exceed:

• $6,500 if you're under 50 years of age
• $7,500 if you're age 50 or older (known as a "catch-up contribution")

This limit is per person, not per account. If you have two IRA accounts -- say, a traditional IRA and Roth IRA -- your total contributions cannot exceed the annual limit.

If your income is too high, you might be able to contribute through the backdoor Roth IRA contribution method. With this method, you contribute to a traditional IRA and immediately convert the account to a Roth. Unlike a direct Roth IRA contribution, there are no income restrictions if you do this.

1. Decide if you're eligible. Take a look at the income limits above to see if you qualify.
2. Pick a Roth IRA provider. Compare different providers, then decide which one is right for you.
3. Open an account. You'll need identification (like a driver's license), your Social Security number, and bank account information. In addition, you'll create login credentials for your account and indicate how you want to fund it.

RELATED: Many people have their contributions automatically deducted from their bank. See The Ascent's roundup of the best checking accounts.

Don't miss that: With a traditional IRA, you receive your tax benefit now in the form of reduced taxable income. In exchange for that reduction, you pay taxes on traditional IRA distributions in retirement. A Roth IRA, however, is funded with after-tax dollars and doesn't reduce your taxable income. However, with a Roth IRA, you receive your tax benefit later in the form of tax-free distributions.

• You're not worried about saving money on your taxes now.
• You would rather keep your taxable income as low as possible after you retire.
• You don't qualify for a traditional IRA, but you qualify for a Roth IRA contribution.
• You don't want to be forced to withdraw money from your savings after you reach a certain age.
• You don't want all of your money to be tied up until you retire.

So why open a Roth IRA? A Roth IRA account can be a great way to set aside money for retirement, but as we've discussed here, it isn't the only option you have. When planning for retirement, there's no such thing as a perfect retirement account for everyone. A Roth IRA is no exception. But with our guidance and a little research, you can find the best place to open a Roth IRA with ease.