Where should I start my Roth IRA?

[JrJordan]

Hi,
I'm 20 years old and a sophomore in college. Poker has turned into a decent part-time job for me and I'd like to open a Roth IRA with some of my profits before the tax year is up. I don't have enough experience or money to try and outperform the market, so I figure the best option right now is an index fund of some sort. So the question is what site should I open it on? I know Fidelity and Vanguard both have minimal expense index funds, but noticed they both charge a $10 annual fee for balances under $10k. Is there any index fund that will get me around this (I'm guessing not). Also, am I going to be restricted to just trading on Vanguard or Fidelity's funds/stocks in the future if I start my IRA there now? If so, is there an alternative that offers some more flexibility in that? Someone mentioned Ameritrade awhile back as a good source, however I noticed they charge $17 to buy mutual funds instead of the annual $10 on Vanguard or Fidelity. Any help appreciated.

[poker327]

I am not sure you an legally contribute to an IRA with poker winnings. From http://www.redfcu.org/investments/roth_iras.htm:

"The individual must have taxable earned income from employment."

In any case, I have a Roth at Vanguard. You will have to pay the $10 annual fee (it will be automatically deducted) regardless of what fund you are in, or even if you leave it in case. I invest in the Target Retirement 2045 Fund. If you open up a Vanguard Mutual Fund Roth, you can only trade Vanguard funds. But, I am almost positive you can rollover your assets to another Roth in the future if you wanted to.

[JrJordan]

I had a paid internship over the past summer as well, so I could easily say that that money is coming from there instead of poker. It sounds like most people on here use Vanguard for their index funds. As long as I can transfer the IRA to another account if necessary, I think I will take that route.

[b0000000000m]

Vanguard.

And yes, you can transfer it later.

[balkii]

poker winnings are considered earned income.

[lastsamurai]

Come on guys.. are you really going to report your poker winnings to the irs?

There is a reason why casinos let you put money in their cages...geez!

[DiamondDave]

E*Trade doesn't charge me a custodial fee for my Roth IRA, but I may have been grandfathered into a good deal somehow.