My husband and I are both planning on opening a ROTH this year with the money we receive from our tax returns. We file jointly, and I understand that we can open individual ROTH accounts, with our maximum investmets per year being $2000/ account. My question is this: is there a MINIMUM amount that we must invest in order to establish a ROTH? I have been told that the minimum amount needed is $250. Is this true? I have searched high and low for this info. Can someone help?

Minimums are set by your custodian (not by the IRS) and vary among banks, mutual funds and brokerages. Some will allow a $250 minimum initial but not all. Some will allow a lower minimum if you make automatic deposits from your checking account.

One potential solution to the small minimum problem is that you flip a coin and one of you opens a $500 account this year, the other gets dibs next year. This also has the added advantage of cutting any potential annual fees in half. Ideally, you would like a custodian with no annual fee.

If you still have less than a minimum amount, then I suggest that you set aside you funds and "pay yourself first" by writing a small check each month for your future IRA. Maybe you can elect to work an extra weekend or some overtime. Another option is to take your current initial amount to a successful grandparent or uncle and ask if they can help you get started by matching your initial. Sure beats a birthday or Christmas gift you may not need.

Good luck.