Unlike 401(k) and other employer-sponsored retirement plans, Individual Retirement Accounts (IRAs) can be established by individuals over 18 with taxable income. You don’t have to choose between a 401(k) and an IRA, as having both can provide additional tax benefits.
Below are our top recommendations for the best IRA accounts, chosen by Business Insider editors in 2024.
Featured IRA Accounts from Our Partners
Robinhood IRA
Robinhood offers a unique perk with its IRA Match program, where you can earn up to 3% extra on every dollar contributed to your IRA when you subscribe to Robinhood Gold. Contributions must stay in the IRA for at least five years to qualify for the match.
- Account Minimum: $0
- Fees: 0% (but $5/month for Robinhood Gold)
- Pros: Free trades for stocks, options, ETFs, and cryptocurrencies; high APY on uninvested cash; IPO investing available; easy-to-navigate website with advanced charts.
- Cons: Limited investing research and trading tools; professional research available only for Robinhood Gold members.
Consider Robinhood if you want to trade crypto and invest in a wide range of stocks and ETFs.
Wealthfront IRA
Wealthfront is a top choice for those looking for automated portfolio management at a low cost. The robo-advisor offers a variety of account types and investment strategies, including tax-loss harvesting.
- Account Minimum: $500
- Fees: 0.25% annually; 0.06 – 0.13% for low-cost investment funds
- Account Types: Traditional IRAs, Roth IRAs, SEP IRAs
- Pros: Low annual fee; access to tax-loss harvesting; mobile app with investing and retirement tools; traditional, Roth, and SEP IRAs available.
- Cons: Requires $100,000 minimum for additional investment strategies; no access to human advisors.
Wealthfront is ideal for those seeking goal-based strategies for retirement and other savings goals.
SoFi IRA
SoFi stands out for its $0 commissions for stocks and ETFs, allowing automated investing with as little as $1. The platform also provides access to certified financial planners.
- Account Minimum: $0
- Fees: 0%
- Account Types: Traditional IRAs, Roth IRAs, SEP IRAs
- Pros: No minimums or fees; certified financial planner access; cryptocurrency trading available.
- Cons: No tax-loss harvesting; limited investment selection.
SoFi is great for beginners seeking low-cost retirement, investing, and savings options.
Compare the Best IRAs
Consider rolling over assets from an old 401(k) plan with some top brokers like SoFi or Fidelity. Here’s our full editorial list of the best IRAs to start in April 2024:
- Charles Schwab IRA: Best overall IRA
- Fidelity IRA: Best IRA for retirement saving
- TD Ameritrade IRA: Best IRA for mobile trading
- Ellevest IRA: Best IRA for access to human advisors
- Robinhood IRA: Best IRA match
- E*TRADE: Best IRA for passive investors
- Betterment IRA: Best IRA for automated investing
- SoFi IRA: Best IRA for beginner investors
- Vanguard IRA: Best IRA for experienced investors
- Goldco: Best Gold IRA
Traditional vs. Roth IRAs
Traditional IRAs allow tax-deferred contributions using pre-tax dollars, growing your account without upfront tax payments. Withdrawals can begin at age 59 ½, and required minimum distributions start at age 70.
Roth IRAs are funded with after-tax dollars, offering tax-free growth and withdrawals. Both types have a contribution limit of $7,000 for people under 50 and $8,000 for those over 50 in 2024.
Best IRA Accounts for Different Needs
Best Overall IRA: Charles Schwab
Charles Schwab offers free account setup and no trading fees for traditional IRAs. You can access stocks, bonds, ETFs, mutual funds, and CDs, alongside Schwab’s expert insights and customizable portfolios.
- What to look out for: Commissions may apply for certain transactions, such as foreign exchange trades and fixed-income investments.
Best for Retirement Savings: Fidelity IRA
Fidelity’s IRAs come with no account minimums and commission-free trades on stocks, ETFs, and options. It offers a wide range of retirement accounts and educational resources.
- What to look out for: Fidelity Go charges a 0.35% management fee for accounts over $25,000.
Best for Mobile Trading: TD Ameritrade
TD Ameritrade offers no minimum account sizes and a wide selection of commission-free trades. The thinkorswim platform is perfect for active traders.
- What to look out for: Charles Schwab’s acquisition may lead to changes in product offerings.
Best for Access to Human Advisors: Ellevest
Ellevest provides retirement and investing accounts without minimum balance requirements. It focuses on closing the gender pay gap and offers gender-specific strategies.
- What to look out for: Ellevest’s primary audience is women, but it welcomes all clients.
Best IRA Match: Robinhood
Robinhood provides commission-free trading and a 1% match on IRA contributions, with up to 3% for Robinhood Gold members until April 30.
- What to look out for: Robinhood Gold benefits require a $5 monthly subscription fee.
Best for Passive Investors: E*TRADE
E*TRADE’s IRAs feature commission-free trades and a wide range of no-load, no-transaction-fee mutual funds.
- What to look out for: Options contracts cost more if fewer than 30 trades per month are made.
Best for Automated Investing: Betterment
Betterment offers low-cost automated management with features like tax-loss harvesting and socially responsible investing.
- What to look out for: Unlimited financial planner access requires the Premium plan.
Best for Experienced Investors: Vanguard
Vanguard offers a variety of retirement accounts and financial planning services, ideal for long-term investors.
- What to look out for: Higher advisory fees for personalized portfolio management.
Best Gold IRA: Goldco
Goldco is ideal for diversifying with precious metals, offering gold, silver, platinum, and palladium IRAs.
- What to look out for: Minimum account opening requirement of $25,000.
Conclusion
Choosing the right IRA depends on your investment goals, risk tolerance, and whether you prefer hands-on management or automated solutions. Each of these brokers offers unique benefits, so consider your needs carefully to make the best decision for your retirement savings.