Can I Open a Roth IRA With an ITIN Number?

Saving for retirement is a goal for many, and a Roth IRA is a popular choice due to its tax advantages. An Individual Taxpayer Identification Number (ITIN) serves a specific role in the U.S. tax system for those without a Social Security Number (SSN). A common question arises for individuals with an ITIN: can they open a Roth IRA? Generally, an ITIN is not sufficient to open a Roth IRA because the IRS requires an SSN for these tax-advantaged accounts. This article explains Roth IRA eligibility, the purpose and limitations of an ITIN, and alternative retirement savings avenues.

Understanding Roth IRA Eligibility

To contribute to a Roth IRA, individuals must meet specific IRS criteria. A primary requirement is “earned income,” which includes wages, salaries, tips, bonuses, commissions, and net earnings from self-employment. Investment income, such as interest or dividends, does not qualify. If an individual has no earned income for a tax year, they generally cannot contribute, with a spousal IRA being an exception where a non-working spouse can contribute based on the working spouse’s income.

Contribution limits for Roth IRAs are set annually by the IRS, depending on age and Modified Adjusted Gross Income (MAGI). For 2025, the maximum contribution limit for individuals under age 50 is $7,000, while those age 50 and older can contribute an additional $1,000, totaling $8,000.

Eligibility to contribute the full amount is phased out at certain MAGI levels. For 2025, single filers can make a full contribution if their MAGI is less than $150,000; contributions are reduced for MAGIs between $150,000 and $165,000, and no contribution is allowed at or above $165,000. For those married filing jointly, the full contribution is allowed if their MAGI is less than $236,000; the phase-out range is between $236,000 and $246,000, with no contributions permitted at or above $246,000.

A valid Social Security Number (SSN) is required for opening and maintaining a Roth IRA. The IRS mandates an SSN for tax reporting and identification purposes related to these tax-advantaged accounts. Without an SSN, financial institutions cannot open a Roth IRA for an individual.

The Purpose and Limitations of an ITIN

An Individual Taxpayer Identification Number (ITIN) is a unique tax processing number issued by the IRS to individuals who need a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN). ITINs consist of nine digits, formatted similarly to an SSN, and always begin with the number “9”. The primary purpose of an ITIN is to facilitate federal tax reporting and compliance for non-citizens and resident aliens with U.S. tax obligations, allowing them to file tax returns.

An ITIN serves as a tax identification number but does not grant the holder the right to work in the U.S., provide eligibility for Social Security benefits, or change immigration status. Its function is strictly for federal tax purposes. ITINs are accepted for certain financial activities; many financial institutions allow individuals to open basic checking and savings accounts using an ITIN for identification, complying with “Know Your Customer” (KYC) regulations. This allows ITIN holders to access essential banking services.

However, an ITIN does not extend to all financial products, particularly tax-advantaged retirement accounts like Roth IRAs or traditional IRAs. This is because IRS regulations require an SSN for these accounts to track contributions, tax deferrals, and distributions. Financial institutions must report account activity to the IRS using an SSN, making it a mandatory identifier for these retirement savings vehicles. While an ITIN is sufficient for general tax filing, it does not fulfill the specific identification requirements for retirement accounts.

Exploring Alternative Retirement Savings Options

For individuals unable to open a Roth IRA due to the Social Security Number requirement, several alternative savings pathways exist. Taxable brokerage accounts offer a flexible investment option and can typically be opened with an ITIN. These accounts allow investment in a wide range of assets, including stocks, bonds, mutual funds, and ETFs. Earnings like capital gains and dividends are generally taxed annually, meaning they do not offer the same tax-free growth or withdrawal benefits as a Roth IRA.

Employer-sponsored retirement plans, such as a 401(k) or 403(b), may present another savings avenue. Eligibility is usually tied to employment status, so ITIN holders who are employees might participate if their employer offers such a plan. While contributions are often made through payroll deductions, ITIN holders should confirm with their employer and plan administrator whether an ITIN is accepted for enrollment and future distributions, as some plans may still require an SSN for full access to funds upon retirement.

High-yield savings accounts and Certificates of Deposit (CDs) provide lower-risk savings options, and many financial institutions accept an ITIN for opening these accounts. While they do not offer the investment growth potential or tax advantages of retirement accounts, they can serve as a secure place to save for short-to-medium term financial goals or an emergency fund. These accounts offer a modest return on savings and are generally accessible with an ITIN for identification.

Exploring retirement savings options in an individual’s home country or other foreign jurisdictions is another consideration. This approach can be complex due to international tax laws and reporting requirements. Individuals pursuing this option should consult with an international tax advisor to understand the implications and ensure compliance with both U.S. and foreign tax regulations.