- Best Overall
- Best for Retirement Savings
- Best for Access to Advisors
- Best for Passive Investors
- Best for Automated Investing
- Best for Experienced Investors
- Best Gold IRA
- FAQs
- Why You Should Trust Us
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Unlike 401(k)s and other employer-sponsored retirement plans, IRAs — or individual retirement accounts — can be set up by individuals over 18 with taxable income. But you don't have to pick between the two, as you can have a 401(k) and an IRA to unlock even more tax advantages.
Roll over assets from an old 401(k) plan with some of the best rollover IRAs from top brokers like SoFi or Fidelity. Here is our full editorial list of the best IRAs to start:
Best IRA Accounts in 2024
- Charles Schwab IRA: Best overall IRA
- Fidelity IRA: Best IRA for retirement saving
- Ellevest IRA: Best IRA for access to human advisors
- E*TRADE: Best IRA for passive investors
- Betterment Investing: Best IRA robo-advisor
- SoFi IRA: Best IRA for beginner and intermediate investors
- Vanguard IRA: Best IRA for experienced investors
- Goldco: Best Gold IRA
Compare the Best IRA Accounts
The best IRA accounts, including the best Roth IRA accounts, are powerful investment vehicles to build long-lasting wealth. Whether a beginner or an experienced investor, you can benefit from the best individual retirement accounts.
Below, we've listed our top picks for the best IRA accounts as chosen by our Business Insider editors in 2024.
Charles Schwab: Best IRA Account Overall
Schwab's traditional IRAs are free to set up and don't include any account or trading fees. Traditional IRAs include $0 online equity trades, 24/7 customer support, retirement planning resources, and access to the following investments: stocks, bonds, ETFs, mutual funds, and CDs.
The brokerage's traditional IRAs also feature access to investing and market insights from Schwab experts. And – if you're looking for a robo-advisor or professionally managed portfolios – you can take advantage of Schwab Intelligent Portfolios or Schwab Intelligent Portfolios Premium.
Each automated investing account is also compatible with Roth IRAs, SEP IRAs, SIMPLE IRAs, and inherited IRAs.
What to look out for: Though you'll pay $0 for stock and ETF trades, certain transactions will cost you. For example, you'll likely pay commissions on transactions that require special handling, restricted stock transactions, foreign exchange trades, transaction-fee mutual funds, fixed-income investments, and futures.
Fidelity IRA: Best IRA Account for Retirement Savings
Fidelity's traditional IRAs come with $0 account minimums and commission-free trades on stocks, ETFs, and options. The brokerage also offers several other retirement accounts, including Roth IRAs, rollover IRAs, small business retirement plans, and Roth IRAs for Kids.
Fidelity offers a wide range of retirement planning resources, including its learning center, which explains complex financial topics. You can access no-transaction-fee funds, commission-free stocks and ETFs, and zero-expense ratio index funds.
Fidelity also offers an automated option, Fidelity Go, that provides personalized advice for hands-off investors. There's no minimum for balances under $25,000. If your account exceeds $25,000, you'll be subject to an annual 0.35% management fee. On the bright side, you'll get unlimited access to one-on-one consultations from Fidelity advisors.
What to look out for: If you choose Fidelity Go, you'll pay $0 if you have an account balance below $25,000. You'll pay a 0.35% fee if you've got more than $25,000.
Ellevest: Best IRA Account for Access to Human Advisors
You can set up any retirement or investing accounts at Ellevest without minimum balance requirements. The company offers two membership plans: Plus and Executive. Plus costs $5 per month and Executive includes a $9 monthly fee. Each account includes access to CFPs.
The robo-advisor provides six goal-based investment accounts to meet various savings goals. Ellevest also offers account strategies such as automatic rebalancing and asset allocation.
What to look out for: Ellevest welcomes all clients but specifically focuses on closing the gender pay gap for women and offering gender-specific strategies.
E*TRADE: Best IRA Account for Passive Investors
Like most advisors mentioned in our roundup, E*TRADE's traditional IRAs feature commission-free stock, ETF, and options trades. The brokerage also charges $0 account fees and offers a robo-advisor called Core Portfolios.
A major distinction is that E*TRADE provides more than 4,000 no-load, no-transaction-fee mutual funds (the brokerage has more than 9,000 total mutual funds). You won't pay the brokerage's mutual funds sales charges or commissions. If you prefer passive investments, E*TRADE could be suitable for you.
The brokerage also offers automated investing through its Core Portfolios platform. You'll need at least $500 to set up this account.
What to look out for: You'll pay more for options contracts if you don't make at least 30 trades per month.
Betterment: Best IRA Robo-Advisor
Besides its annual fees, Betterment is a free choice for those looking for automated retirement account management. The robo-advisor offers two plans: Digital and Premium. You can set up the digital plan without an account minimum, but it'll cost you an annual 0.25% account fee and a minimum of $10 to start investing.
Betterment additionally offers features such as tax-loss harvesting, socially responsible investing, access to CFPs, automatic rebalancing, and more.
What to look out for: You must sign up for the Premium plan to get unlimited financial planner access. But you can still sign up for one-time advisor consultations. Costs for such consultations start at $299.
SoFi: Best IRA Account for Automated Investing
SoFi is a great choice for traditional IRAs. In addition to other investing, loans, and savings options, the advisor provides Roth and SEP IRAs. The company also offers $0 commissions for stocks and ETFs, and you can set up automated investing with as little as $1. SoFi IRA offers several help centers, guides, and calculators if you're looking for financial resources and tools.
The company provides certified financial planners, and it even offers Stock Bits, or fractional shares, for account holders looking to buy smaller portions of companies.
What to look out for: SoFi IRA has competitive product offerings, but the company has a limited selection of investments compared to other popular brokerages.
Vanguard: Best IRA for Experienced Investors
Vanguard offers a suite of retirement accounts and financial planning services for beginners and advanced traders. Open a self-directed traditional, Roth, SEP, SIMPLE, or rollover IRA for a $0 minimum. However, all Vanguard target retirement funds have at least a $1,000 minimum. You can also invest in Vanguard ETFs and all-in-one retirement funds.
Most Vanguard IRA retirement plans are available through Vanguard's robo-advisor and managed account option, but you'll have to meet higher minimum requirements and fees. Get a personalized portfolio of Vanguard ETFs with Vanguard Digital Advisor, or combine automated portfolio management with one-on-one financial advisor support with Vanguard Personal Advisor Services.
Explore Vanguard's retirement planning services and tools like tax-loss harvesting, retirement income calculators, worksheets, and informational guides.
What to look out for: Vanguard Digital Advisors requires a $3,000 minimum and a 0.20% advisory fee. Vanguard Personal Advisor Services require a $50,000 account minimum and charge a 0.30% advisory fee for balances under $5 million.
Goldco: Best Gold IRA
Goldco is on the top of our list of the best gold IRAs and is a great option for investors to diversify their investment portfolios with commodity assets like precious metals. Investing in gold also helps you hedge against inflation.
You can also invest in a silver IRA with Goldco, as well as platinum and palladium bullion and coins. You can even request physical gold and have it shipped to your address. If you're looking to roll over assets from an old 401(k) plan, Goldco permits rollover IRAs.
What to look out for: Goldco requires a $25,000 minimum to open an account. You can't invest in other assets like stocks or bonds with Goldco.
What is an IRA Account?
IRA accounts are tax-advantaged retirement savings vehicles for people to contribute pre-tax or after-tax dollars toward their golden years. You can open a traditional or Roth IRA at any age, but you won't be able to withdraw penalty-free until you're at least 59 1/2.
Similar to a 401(k) plan, the money in your IRA grows over time due to compound interest and investment opportunities. With an IRA, you get more control and flexibility over how your funds are managed. But you can only contribute up to a certain amount each year.
How to Choose the Best IRA Account
When deciding the best IRA account, compare different investment choices, fees, customer service, and tools. Not all IRA accounts are built the same. You may be better off with one IRA provider versus another depending on your experience, preferred investment strategies (passive vs. active), and risk tolerance.
User-friendliness is an essential factor in picking a compatible platform. Ensure you carefully observe the performance history, customer support reputation, and platform trustworthiness before joining.
FAQs About IRA Accounts
Are IRA accounts worth it? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.IRA accounts are worth it for most individuals with an annual income, especially people who don't have access to a workplace retirement plan like a 401(k) or pension plan. IRAs offer you great tax advantage and compound growth to boost retirement savings down the line. IRAs generally have lower fees compared to some other retirement plans.
What are the disadvantages of a traditional IRA? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.The contribution limits for traditional IRAs can be low. Some employer-sponsored retirement plans can reduce or eliminate someone's IRA contributions. If you withdraw from your account before you're 59 1/2, you'll not only have to pay taxes on that amount, but you'll also have to pay a 10% penalty fee. You could also be charged a fee if you don't start withdrawing the required minimum distributions at age 73.
Are IRAs better than 401(k)? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.IRAs offer lower fees and more flexibility than 401(k) plans. However, IRA contribution limits are much lower than 401(k)s. You also won't get access to the convenience of payroll deductions or an employer-sponsored match contribution. Whether an IRA or 401(k) is better depends on your preferences, access to employer retirement benefits, and goals.
Why You Should Trust Us: Our Expert Panel on The Best IRA Accounts
We interviewed the following three investing and retirement experts to see what they had to say about traditional IRA accounts:
- Lazetta Rainey Braxton, MBA, CFP, co-founder and co-CEO at 2050 Wealth Partners
- Brian Fry, CFP, founder at Safe Landing Financial
- Charlotte Geletka, CFP, CRPC, managing partner at Silver Penny Financial Planning
Here's what they had to say about traditional IRA accounts. (Some text may be lightly edited for clarity.)
What are the advantages and disadvantages of opening a traditional IRA account?
Lazetta Rainey Braxton:
"Contributions to the traditional IRA are not considered a part of the taxable income for the year that that contribution was made to that traditional IRA.
"As you allow that traditional IRA to grow, you're going to have both tax-deferred contributions and tax-deferred growth and earnings. So when it is time for you to retire and take out those funds, it will be subject to ordinary income tax rates, based on your income during retirement."
Brian Fry:
"A traditional IRA generally offers better flexibility, freedom, and transparency than a 401(k). If you're under income phaseout limits, then there is a tax-deduction for IRA contributions.
"If you're above income phaseout limits, there are still planning considerations for IRA contributions, for example an advanced planning strategy such as a backdoor Roth IRA.
"A disadvantage is that there are no company match opportunities for a traditional IRA. Traditional IRAs also have hefty penalties for withdrawing funds before age of retirement."
Charlotte Geletka:
"A significant advantage of opening an IRA includes an above-the-line tax deduction if you are within the IRS income limitations for 2021 (ask your tax professional or financial advisor to double check based on your income). The IRS website also has good guidance on IRAs. In a traditional IRA, the money grows tax deferred. This is great for long-term growth.
"However, you will pay taxes on the money when it comes out. Also keep in mind that an IRA is what I like to call a "pay now, play later" plan. What I mean by that is that once the money goes into an IRA you will not be able to take the money out until you reach the age of 59 and a half."
Who should consider opening a traditional IRA?
Lazetta Rainey Braxton:
"[If] you want to keep your tax brackets low, a lot of people go traditional because the contributions — at the time you're earning it and making those contributions — are in fact reducing your taxable income."
Brian Fry:
"If uncovered by an employer retirement account, a traditional IRA can be a good fit regardless of income."
Charlotte Geletka:
"A traditional IRA is a great option if you do not have a retirement plan through your employer or if you are self-employed. You must have earned income to contribute each year."
What makes a traditional IRA account good or not good?
Lazetta Rainey Braxton:
"If you are age 50 or older, you are also eligible for the catch-up provision, which is also allowed for a [Roth] IRA as well as an employer-based plan. But the important fact to know about a traditional IRA versus an employer's plan is that traditional IRAs, in terms of its deductibility, aren't based on your adjusted gross income.
"Note that the catch-up provision allows you to contribute an additional $1,000 for IRAs if you're 50 or older. For employer-sponsored retirement plans, you can contribute an additional $7,500 if you're 50 or older.
"And since there is a cap on your income that relates to deductibility, it might make it less attractive as well because you might not just be eligible to make a deductible contribution."
Brian Fry:
"A traditional IRA is good in providing tax advantages. Unlike a brokerage account, investors are not taxed on capital gains. There can be a deduction for contributions. Investments grow tax-deferred until distributions are made.
There are several reasons a traditional IRA could be considered a bad account type. Investors are taxed on withdrawals, which are usually much larger than initial contributions. Tax rates can be potentially higher for investors during retirement."
Charlotte Geletka:
"A traditional IRA is great for retirement savings, tax savings and investing. However, you are just pushing the tax liability down the road since you are required to pay income taxes on distributions.
"The good news is that you are allowed to let the money grow tax-deferred until you begin to take distributions. You may begin at age 59.5 but you must begin by age 72."
Is there any other advice you'd offer someone who's considering opening a traditional IRA?
Lazetta Rainey Braxton:
"Know of all your options related to investments that can help support you in retirement. Think about whether you want to pay taxes now or later. With the traditional IRA, you would be paying taxes later."
Brian Fry:
"Don't open a traditional IRA or rollover your 401(k) without considering all of your options. If you're unsure, make sure to put in the research or ask a financial professional that serves as a fiduciary to have confidence in how to best move forward."
Charlotte Geletka:
"The investments inside an IRA are chosen by the account owner. This makes the options almost endless. Also keep in mind it is designed for you to save money to be used in retirement, so do not put money in an IRA that you might need in the short term. This is not a good place for your emergency fund."
Methodology: How We Reviewed The Best IRA Accounts
We reviewed and compared over a dozen IRA accounts using Business Insider methodology for reviewing investment platforms to determine the top brokerages and robo-advisors with strong retirement account options. Some factors we considered included minimum account balances, account fees, account types, investment selection, and retirement planning resources. We also cross-referenced our list with popular comparison sites like NerdWallet and Investopedia to ensure we didn't miss anything.
We also looked into each account's customer service offerings, mobile app access, and human advisor offerings.
Tessa Campbell Investing and Retirement Reporter Tessa Campbell is an investing and retirement reporter on Business Insider’s personal finance desk. Over two years of personal finance reporting, Tessa has built expertise on a range of financial topics, from the best credit cards to the best retirement savings accounts.ExperienceTessa currently reports on all things investing — deep-diving into complex financial topics, shedding light on lesser-known investment avenues, and uncovering ways readers can work the system to their advantage.As a personal finance expert in her 20s, Tessa is acutely aware of the impacts time and uncertainty have on your investment decisions. While she curates Business Insider’s guide on the best investment apps, she believes that your financial portfolio does not have to be perfect, it just has to exist. A small investment is better than nothing, and the mistakes you make along the way are a necessary part of the learning process.Expertise: Tessa’s expertise includes:- Credit cards
- Investing apps
- Retirement savings
- Cryptocurrency
- The stock market
- Retail investing
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