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Best IRA Accounts for March 2024

Review Updated
Matt Frankel, CFP®
Steven Porrello
By: Matt Frankel, CFP® and Steven Porrello

Our Brokerages Experts

Ashley Maready
Check IconFact Checked 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 our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

An individual retirement account (IRA) is one of the few accounts that lets you invest money without paying taxes on earnings, dividends, and capital gains every year. Like its sibling, the 401(k), IRAs are designed to put as much compounding power into your retirement savings as an untaxed dollar can get.

But don't be fooled: An IRA is only as good as the place you keep it. Choosing an IRA can come with a bit of anxiety -- "Who has the lowest fees?" "Who has the best mutual funds?" We've been there, and we hope this guide can help you navigate those questions with ease.

With that in mind, let's cover our favorite IRA providers and see which ones might be ideal for your retirement savings.

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 Next Steps
Award Icon 2024 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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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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Best For:

Mobile platform

Commission:

$0 for stocks, ETFs, and options

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.
= Best
= Excellent
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Best For:

Mutual funds and ETFs

Commission:

No account fees to open a Fidelity retail IRA

Award Icon 2024 Award Winner
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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= Excellent
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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.
= Best
= Excellent
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Best For:

Mutual fund investing

Commission:

$0 per trade

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
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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:

Mobile platform

Commission:

Commission-free; other fees apply

Award Icon 2024 Award Winner
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.
= 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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Best For:

Low account fees

Commission:

$0 for stocks, $0 for options contracts

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.
= 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:

Customer support

Commission:

$0 for stock and ETF trades

Award Icon 2024 Award Winner
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.
= Best
= Excellent
= Good
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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:

Low fees

Commission:

$0 stock and ETF trades

Award Icon 2024 Award Winner
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.
= Best
= Excellent
= Good
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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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Best For:

Retirement investors

Commission:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades

Award Icon 2024 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
= Good
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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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Best For:

Index funds

Commission:

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

How to pick an IRA

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

  • Investment options: IRA providers typically let you invest in stocks and index funds, but may not offer mutual funds or options contracts.
  • In-person consultation: Some brokers will provide face-to-face retirement planning. If this is important to you, check to see if the broker has a branch near you.
  • Low commission and trading fees: Look closely at mutual funds and options 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 a library fully stacked with retirement guides. Or it could mean having wealth-planning tools, like calculators, that can help you stay on track.
Robinhood
Open Account for Robinhood

On Robinhood's Secure Website.

Ratings Methodology
Award Icon 2024 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.
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Bottom Line

With no commission fees, access to trade fractional shares, and many investment types, Robinhood's high-quality app trading platform is best suited for beginner investors wanting a solid place to invest on the go.

Fees:

$0 for stocks, ETFs, and options

Account Minimum:

$0

Open Account for Robinhood

On Robinhood's Secure Website.

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.
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Bottom Line

We rate Fidelity as a top option for IRAs with pretty much every feature you’d need: an intuitive platform and tools, a strong selection of funds and ETFs, excellent customer service, and no account fees or account minimums.

Fees:

No account fees to open a Fidelity retail IRA

Account Minimum:

$0

Open Account for Fidelity

On Fidelity's Secure Website.

Award Icon 2024 Award Winner

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.
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Bottom Line

With no minimum deposit requirements to open an account, and no mutual fund commissions whatsoever, J.P. Morgan Self-Directed could be a great home for your IRA, especially if mutual funds are a big part of your strategy.

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 04/12/2024.

Open Account for J.P. Morgan Self-Directed Investing

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

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.
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Bottom Line

E*TRADE is a strong option for IRAs, with no commission or transaction fees and more than 6,400 no-load mutual funds. Additionally, they don’t have account minimums for IRA accounts.

Fees:

Commission-free; other fees apply

Account Minimum:

$0

Open Account for E*TRADE

On E*TRADE's Secure Website.

Award Icon 2024 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.
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= Excellent
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Bottom Line

SoFi stands out with a simple IRA setup process and low fees, in addition to a wealth of other products at your fingertips.

Fees:

$0 for stocks, $0 for options contracts

Account Minimum:

$0

Special Offer Circle with letter I in it. For new accounts: Customer must fund their Active Invest account with at least $10 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.

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.
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Bottom Line

Merrill Edge® Self-Directed is a top IRA option due to its seamless integration and added perks. Merrill also scores points for no account minimums and a wealth of no-transaction fee mutual funds.

Fees:

$0 for stock and ETF trades

Account Minimum:

$0

Award Icon 2024 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.
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= Excellent
= Good
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Bottom Line

Low fees, no account minimums, and over 100 commission free ETFs make Ally an attractive place to park your IRA funds, though it doesn’t offer any no-transaction fee mutual funds.

Fees:

$0 stock and ETF trades

Account Minimum:

$0

Award Icon 2024 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
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Bottom Line

Schwab sports hundreds of no-commission ETFs and the largest amount of no-transaction-fee mutual funds of any broker we evaluated, and individual stock trades are now $0. Its lineup of retirement accounts expands beyond just online access to robust account management capabilities via its mobile app.

Fees:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades

Account Minimum:

$0

Award Icon 2024 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 gets dinged slightly in our model for having high-ish account minimums for some of its services and an often-pricey fee structure for individual stocks, but it remains the gold standard for index funds and ETFs.

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

Editor's Note: TD Ameritrade is transitioning to Charles Schwab

TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've removed TD Ameritrade from our best-of lists to align with this development. Here at The Ascent, you can trust that we're constantly evaluating our top broker picks to bring you current recommendations.

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)
  • Transferring funds from another IRA account.

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

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 brokers that offer a self-directed IRA 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 into stocks even if you can't afford a full share.

IRA contribution limits 2024

The IRA contribution limit changes annually, 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

Contribution limits and their tax implications can be nuanced; if you're looking for more information, it's best to reference the official IRS website for the most up-to-date details.

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.

Can you lose money in an IRA?

Yes, you can lose some or all of your money in an IRA. But if you invest conservatively in blue-chip stocks, ETFs, and mutual funds, the chance of losing all of your money can be greatly diminished. (Although like much of life, nothing is guaranteed.)

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 59 1/2 . While some early withdrawals may be acceptable (such as for financial hardships), most will incur an additional income tax of 10% of the amount you withdraw.

How to withdraw from an IRA

If you've reached age 59 1/2, you can access money in your IRA penalty-free. Most brokers and banks will give you plenty of ways to receive your money, such as electronic funds transfers, wire transfers, and paper checks.

However, if you're younger than 59 1/2, withdrawing money from your IRA can be expensive and cumbersome.

Exceptions to IRA withdrawal rules

There are some exceptions to these rules. You can typically access money for these purposes without penalty:

  • First-time home purchases (up to $10,000)
  • Expenses for birth or adoption (up to $5,000)
  • To recover from a federally declared disaster (up to $22,000)

You can check out the full exceptions list on the IRS website.

Here's what to keep an eye out for:

  • For traditional and SEP IRAs, you'll pay a 10% penalty on the amount you withdraw, plus federal and state taxes at your regular tax rate.
  • With Roth IRAs, your cost depends on what you want to withdraw.
    • You're allowed to withdraw your contributions penalty-free at any time.
    • As far as your earnings or growth goes, you'll have had the Roth IRA for five years and have reached 59 1/2 before you can withdraw these penalty-free. If one or both of those conditions aren't met, you'll pay a 10% penalty on your withdrawal, plus taxes.

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.

FAQs

  • Most online brokerage firms let you open a self-directed 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 or not an IRA can help you save on taxes 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.

Our Brokerages Experts