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Our December 2024 Picks: Best IRA Accounts

Review Updated
Steven Porrello
Cole Tretheway
Ashley Maready
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

Individual retirement accounts (IRAs) give you special tax advantages. The best of them make it simple and profitable to save for retirement, with no hassle. Passive and active investors can use these accounts to invest in stocks, earn interest, and more.

Financial freedom is easier with IRAs. If you can wait to withdraw money until retirement, the tax advantages of IRAs make them more profitable than regular brokerage accounts. See the following accounts for what they're best for (best app, low fees, IRA match) and bottom lines.

  • Our team of experts assessed 45+ trading platforms
  • We evaluate all brokerage accounts across the same 4 key criteria: user experience, cost efficiency, product variety, and support and security
  • Our brokerage ratings are never influenced by our advertising partners
  • We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased

There are a lot of options to compare, even on this page. It can be overwhelming! If you're looking for a place to start, here are some IRA accounts our experts recommend and why they like them:

Our 9 Best IRA Accounts

Broker/Advisor Best For Commissions Learn More
SoFi Active Investing Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Best For:

Managing all your money in one place

Commission:

$0 for stocks,¹ $0 for options contracts⁴

Learn More for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Award Icon 2025 Award Winner
E*TRADE Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Best For:

A deep trading platform

Commission:

Commission-free; other fees apply

Learn More for E*TRADE

On E*TRADE's Secure Website.

Award Icon 2025 Award Winner
Robinhood Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
= Poor
Best For:

A learning curve and IRA matching

Commission:

$0 for stocks, ETFs, and options; up to $5 monthly for Robinhood Gold

Learn More for Robinhood

On Robinhood's Secure Website.

J.P. Morgan Self-Directed Investing Offer Image
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Chase customers

Commission:

$0 per trade

Learn More for J.P. Morgan Self-Directed Investing

On J.P. Morgan Self-Directed Investing's Secure Website.

Fidelity Offer Image
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Beginner friendly and feature-rich investing

Commission:

No account fees to open a Fidelity retail IRA

Merrill Edge® Self-Directed Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Best For:

Bank of America customers

Commission:

$0 for stock and ETF trades

Ally Invest Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Best For:

Managing your money in one place

Commission:

$0 stock and ETF trades

Charles Schwab Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Best For:

Most features on one platform

Commission:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.

Award Icon 2025 Award Winner
Vanguard Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Best For:

Passively investing in mutual funds and ETFs

Commission:

$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)

A note from our Head of Product Ratings, Robin Hartill
Image of reviewer

When we researched online brokers to create this list of brokerages, some of the things we looked for were low costs, a variety of account types, and great customer service ratings. Everyone's investing journey is different, but I've found these three factors are important for anyone to have a great investing experience.

Reviews of the best IRAs

For managing all your money in one place: SoFi Active Investing

SoFi Active Investing
Learn More for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Ratings Methodology

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
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Bottom Line

SoFi condenses all its banking, investing, lending, and retirement products in one app. Get special perks and discounts for using more than one SoFi product.

Fees:

$0 for stocks,¹ $0 for options contracts⁴

Account Minimum:

$0

Special Offer Circle with letter I in it. For new accounts: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%.

Get up to $1,000 in stock when you fund a new Active Invest account.

Learn More for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Pros

  • IRA match⁸
  • Easy to use app
  • Mutual funds access

Cons

  • No bonds
  • Feature lite

Why SoFi Active Investing made the list: SoFi is an easy-to-use app-based investment platform, but also has some of the features you might expect from larger, more established brokers. For example, SoFi is one of the few app-based brokers to offer mutual fund investing.

It can also be a great choice for people looking for an all-in-one banking relationship, as it offers excellent checking and savings accounts, as well as other financial products in one user-friendly app.

For a deep trading platform: E*TRADE

E*TRADE
Learn More for E*TRADE

On E*TRADE's Secure Website.

Ratings Methodology
Award Icon 2025 Award Winner

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
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Bottom Line

E*TRADE is a feature-packed oldie that's kept up with the times. It has all the tools a retirement investor could want, including deep research, charts, and 24/7 phone support.

Fees:

Commission-free; other fees apply

Account Minimum:

$0

Learn More for E*TRADE

On E*TRADE's Secure Website.

Pros

  • Many account types
  • Feature-packed
  • 24/7 customer support

Cons

  • Steep learning curve

Why E*TRADE made the list: E*TRADE was one of the pioneers of the online brokerage industry, and is still one of the best at what it does. It offers many different account types, including traditional, Roth, SEP, and SIMPLE IRAs, and has an extensive library of educational resources for investors of all levels.

For a learning curve and IRA matching: Robinhood

Robinhood
Learn More for Robinhood

On Robinhood's Secure Website.

Ratings Methodology
Award Icon 2025 Award Winner

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
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Bottom Line

Robinhood is easy to pick up and tough to put down. The app is easy to learn, and its IRA match is extremely generous.

Fees:

$0 for stocks, ETFs, and options; up to $5 monthly for Robinhood Gold

Account Minimum:

$0

Learn More for Robinhood

On Robinhood's Secure Website.

Pros

  • IRA match
  • Smooth app
  • Access to fractional shares

Cons

  • No mutual funds or bonds
  • No SEP or SIMPLE IRAs

Why Robinhood made the list: Robinhood is best known as an app designed for stock traders, but there's a lot more to it. Robinhood is one of the best places to open an IRA, especially for those who want an easy-to-use app-based platform.

The Robinhood Gold membership costs extra, but the 3% IRA match alone can make it worth paying for.

For Chase customers: J.P. Morgan Self-Directed Investing

J.P. Morgan Self-Directed Investing
Learn More for J.P. Morgan Self-Directed Investing

On J.P. Morgan Self-Directed Investing's Secure Website.

Ratings Methodology

Our Rating:

Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
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Bottom Line

J.P. Morgan Self-Directed Investing keeps it simple. Mutual funds are zero commission, and it's especially convenient if you already bank at Chase.

Fees:

$0 per trade

Account Minimum:

$0

Special Offer

Earn a bonus up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account (retirement or general) with qualifying new money by 01/23/2025.

Learn More for J.P. Morgan Self-Directed Investing

On J.P. Morgan Self-Directed Investing's Secure Website.

Pros

  • Affordable mutual funds
  • All-in-one app for Chase customers

Cons

  • Feature lite

Why J.P. Morgan Self-Directed Investing made the list: J.P. Morgan Chase is best known to most consumers for its Chase banking brand, but it also offers a self-directed investment platform under the legendary J.P. Morgan name.

It has an excellent app and for existing Chase customers, you can manage your investments in the same app and web-based platform as your other banking products.

For beginner-friendly and feature-rich investing: Fidelity

Ratings Methodology

Our Rating:

Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
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Bottom Line

Fidelity combines the solid reputation and feature-rich platform of old platforms with an app that's actually simple to use. It offers Roth and traditional IRAs.

Fees:

No account fees to open a Fidelity retail IRA

Account Minimum:

$0

Pros

  • Easy to use app
  • Fractional share access
  • Feature-rich

Cons

  • Options and mutual funds fees

Why Fidelity made the list: Fidelity can be a great choice for IRA investors, as it is one of the oldest and largest brokers in the United States and offers a ton of educational resources, research reports, and trading tools.

Compared with other "traditional" online brokers, Fidelity's app and trading platforms are surprisingly user-friendly.

For Bank of America customers: Merrill Edge® Self-Directed

Ratings Methodology

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Merrill Edge® Self-Directed offers a simple way for Bank of America customers to invest and take advantage of the bank's Preferred Rewards program.

Fees:

$0 for stock and ETF trades

Account Minimum:

$0

Pros

  • 24/7 customer service
  • Bank of America rewards program

Cons

  • Feature lite

Why Merrill Edge® Self-Directed made the list: Merrill Edge is the self-directed investment platform offered by the Merrill Lynch firm, which is a subsidiary of Bank of America.

You'll find lots of educational resources, an easy-to-use investment interface, and more. Plus, Bank of America customers can take advantage of the excellent Preferred Rewards program.

For managing your money in one place: Ally Invest

Ratings Methodology

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
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Bottom Line

Ally Invest offers all the basics at affordable prices. You can invest, bank, and take out loans from the same platform -- desktop or mobile.

Fees:

$0 stock and ETF trades

Account Minimum:

$0

Pros

  • No mutual funds commissions
  • Free robo-advisor
  • All-in-one platform

Cons

  • Feature lite

Why Ally Invest made the list: Ally Financial is best known for being a leading auto lender, but it also offers a variety of banking services, including an investment platform.

Customers can open IRAs that are self-directed or automated, and there are some big perks, such as commission-free mutual fund investing and even a fee-free robo-advisor option.

For most features on one platform: Charles Schwab

Ratings Methodology

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Charles Schwab gives you so many choices, you'll probably never explore them all. Check it out to do all your investing from one platform.

Fees:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.

Account Minimum:

$0

Pros

  • Tons of investment accounts and products
  • Feature packed
  • 24/7 customer support and 340 branches

Cons

  • Steep learning curve

Why Charles Schwab made the list: Charles Schwab was the original discount broker back in the days when old-school Wall Street brokers and high commissions were the norm. It is now one of the largest brokers in the entire world, and is loaded with features, account types, and investment choices.

For passively investing in mutual funds and ETFS: Vanguard

Ratings Methodology
Award Icon 2025 Award Winner

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Vanguard is a hyper-affordable platform for slowly building up a portfolio of ETFs and mutual funds. It's ideal for retirement investors who don't day trade.

Fees:

$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)

Account Minimum:

$0

Pros

  • Deep research
  • Affordable mutual funds

Cons

  • Feature lite
  • Not built for individual stock trading

Why Vanguard made the list: If you're looking to actively buy and sell stocks in your IRA, or want a powerful and user-friendly trading interface, Vanguard probably isn't the best choice for you. But for a place to buy mainly mutual funds and ETFs and gradually build a retirement portfolio, it's worth a look.

How do I choose an IRA?

As you're comparing IRA brokerages, here are a few features to look for:

  • Investment options: IRA providers typically let you invest in stocks and index funds, but some don't offer mutual funds, options, or other forms of investments such as cryptocurrencies.
  • In-person consultation: Some brokers will provide face-to-face retirement planning through extensive branch networks, or remotely. If this is important to you, check to see if the broker has a branch nearby or offers sessions by video or phone with a human advisor.
  • Low commission and trading fees: Virtually all brokers have stopped charging commissions for basic stock and ETF investing. But if you're interested in mutual funds or options, it's important to understand how much you might be charged for these.
  • Retirement planning resources: If your goal is to save for retirement, make sure the IRA provider is committed to helping you get there. This could mean having access to a library fully stocked with retirement guides or having wealth-planning tools, like calculators, that can help you stay on track.

How to open an IRA account

Each provider will have slightly different steps for opening your IRA account.

First, you'll be asked for some personal information, such as:

  • Address
  • Phone number
  • Social Security number
  • Date of birth
  • Employment information

Next, you'll want to decide how to add funds to your IRA. Some options include:

  • Linking a bank account
  • Rolling over a 401(k) or similar retirement plan
  • Transferring funds from another IRA account
  • Wiring money
  • Mailing a check

At this point, you just choose your investments and your IRA account is open.

What's the minimum to open an IRA?

Some brokers require a minimum initial investment to open an IRA. This is more common if you're opting for a professionally managed IRA or want to put your IRA into a robo-advisor. Most of the brokers on our list don't have IRA account minimums.

Most brokers that offer traditional and Roth IRAs have no minimum deposit requirement, so you can get started with as little as a few dollars. If you're opening an account with a small initial investment, look for a brokerage with zero or low fees. You'll likely also want a broker that lets you purchase fractional shares or ETFs so you can buy stocks even if you can't afford a full share.

IRA contribution limits 2024

The IRA contribution limit changes annually based on inflation, and also changes based on your age. These can be found at the IRS website.

For 2024, you can contribute:

  • $7,000 if you are under 50
  • $8,000 if you are 50 or over at the end of the calendar year

It's also important to mention that IRA contributions and the ability to deduct them on your tax return can be limited based on your income and employment situation. If you're looking for more information, it's best to reference the official IRS website for the most up-to-date details.

It's also worth noting that this is a per-person limit, not per account. In other words, you are allowed to have more than one IRA if you qualify (say, a traditional and a Roth), but your total contribution can't exceed the annual limit.

What investments are allowed in an IRA?

Most investments are allowed in an IRA.

For example, you can invest in any of these in an IRA account:

  • Annuities
  • Bonds
  • CDs
  • Certain cryptocurrencies
  • ETFs
  • Money market accounts (and funds)
  • Mutual funds
  • Real estate
  • REITs
  • Stocks
  • Treasury bills

That said, there are certain investments that aren't allowed in any IRA, such as collectibles (like stamps or artwork) or real estate that you benefit directly from, like a primary residence or rental property. Plus, some brokers don't offer all of these types of investments.

Can you lose money in an IRA?

You can lose some or all of your money in an IRA. But if you invest conservatively in blue-chip stocks (those offered by strong, established businesses), ETFs, and mutual funds, the chance of losing all of your money can be greatly diminished.

Here are three ways that IRAs can lose money:

  • Securities that lose value: This is the most common way to lose money in an IRA account. For example, you could invest in a stock whose company goes bankrupt, thus making your shares worthless.
  • Market conditions: Your IRA account can also fluctuate due to market conditions, performing well when the economy is strong and poor when it goes through downturns and hiccups.
  • Early withdrawals: You can also lose money through early withdrawal penalties. This might happen if you withdraw funds before you reach age 59 1/2. While some early withdrawals may be allowed (such as for financial hardships), most will incur an additional income tax of 10% of the amount you withdraw.

TIP

Is an IRA safe if my brokerage fails?

An IRA account is a safe place to put your money. Money in the account is protected against the broker's failure by the Securities Investor Protection Corporation (SIPC), the brokerage version of the FDIC.

TIP

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What is an IRA?

An individual retirement account (IRA) is an investment account that provides tax benefits, like deferred taxes on investment growth, for retirement savings. These accounts are offered by brokers and banks and come with annual contribution limits.

Our brokerage rating methodology

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology

FAQs

  • Most online brokerage firms let you open an IRA for free. This means you choose your own investments. If you want professional management or a robo-advisor to select your investments, you'll pay a fee for these services.

    Some brokerages charge a commission for buying and selling assets within your IRA. But an increasing number of online brokers are eliminating commission fees for stock trades and offering commission-free ETFs or no-load mutual funds. You might instead pay a flat monthly fee.

    However, you'll still pay fees associated with certain types of investments, such as fund management fees for mutual funds. These fees are paid to the fund managers, not your brokerage firm, and they'll apply no matter which broker you use to buy the investment.

  • Yes, you can hold as many IRAs as you want, but the contribution limit applies across the board. In other words, opening more than one account doesn't increase your total annual contribution limits.

  • Whether an IRA can help you save on taxes or not will depend on your modified adjusted gross income (MAGI) and the retirement plan you have through your employer (if applicable). In general, if your MAGI falls below the income limits set by the IRS or you're not covered by an employer's retirement plan, you're likely eligible to save on taxes with an IRA.

  • Maybe. Anyone can contribute to a traditional IRA, but in order to deduct your contributions, your income must be below certain thresholds if you have a 401(k). If you already have a Roth IRA, you may still qualify for deductible traditional IRA contributions, but your total contributions to both accounts cannot exceed the IRS's annual maximum.

Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios, E*TRADE, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, Moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Robo Investing, Stash, Stockpile, Tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.