Saving for a financial goal that may be years, or sometimes even decades away, may not be at the top of your to-do list. But time moves quickly, and it’s important to save for your golden years as early and efficiently as possible.
That’s where your retirement savings account comes into play. There are several different savings vehicles you can use to begin saving for retirement.
If you’re looking for a place to park your retirement savings, we’ll help make the decision a little easier. The Fortune RecommendsTM editorial team reviewed close to 20 Roth IRA accounts across various financial institutions. We weighed minimum account deposits, minimum balance requirements, account fees, investing assets, and customer service options. (Read our full methodology here.)
| Financial institution | Best for | See details |
|---|---|---|
| Featured partner Interactive Brokers Roth IRA | A wide range of assets | View offer |
| Firstrade Roth IRA | Savers who hate fees | Learn more |
| TD Ameritrade Roth IRA | Those who need some help shaping their retirement saving strategy | Learn more |
| Charles Schwab Roth IRA | Those who need some hand-holding when it comes to saving for retirement | Learn more |
| Fidelity Roth IRA | Those who prefer to choose and manage their own investments | Learn more |
| Merrill Edge Roth IRA | Those who don’t mind an advisory fee | Learn more |
| TIAA Roth IRA | Those who don’t plan to close their account | Learn more |
| E*Trade Roth IRA | Those who want to automate their investment strategy | Learn more |
| SoFi Roth IRA | Those who don’t need a ton of investment options | Learn more |
| Fidelity Go® Roth IRA | Those who liked our fifth pick, but want some extra perks | Learn more |
| Featured partner Interactive Brokers Roth IRA | View offer |
|---|---|
| Best for | A wide range of assets |
| Firstrade Roth IRA | Learn more |
| Best for | Savers who hate fees |
| TD Ameritrade Roth IRA | Learn more |
| Best for | Those who need some help shaping their retirement saving strategy |
| Charles Schwab Roth IRA | Learn more |
| Best for | Those who need some hand-holding when it comes to saving for retirement |
| Fidelity Roth IRA | Learn more |
| Best for | Those who prefer to choose and manage their own investments |
| Merrill Edge Roth IRA | Learn more |
| Best for | Those who don’t mind an advisory fee |
| TIAA Roth IRA | Learn more |
| Best for | Those who don’t plan to close their account |
| E*Trade Roth IRA | Learn more |
| Best for | Those who want to automate their investment strategy |
| SoFi Roth IRA | Learn more |
| Best for | Those who don’t need a ton of investment options |
| Fidelity Go® Roth IRA | Learn more |
| Best for | Those who liked our fifth pick, but want some extra perks |
The 10 best Roth IRAs
While saving for retirement is a common goal, there are several routes you can take to get there. The retirement savings account you choose can make a huge difference in how much you’re able to save in a given time and how quickly you hit your retirement savings goals.
Note: rates, fees, and account requirements are up to date as of April 30, 2024, but are subject to change.
FEATURED PARTNER
Interactive Brokers
| Minimum to open an account | $0 |
| Services available | Stocks, options, futures, mutual funds, fixed income, Roth IRAs, and more |
| Knowledge base available | Yes |
Headquartered in Greenwich, Conn., Interactive Brokers has a 46-year history and offers customers a wide range of assets to invest in, including stocks, options, futures, mutual funds, fixed income, and more.
This brokerage is good for traders who want a wide range of assets to choose from. Interactive Brokers offers an expansive list of products compared to other online brokerages we’ve reviewed, and its zero-dollar account minimum and stock trading fee creates a low barrier of entry. It also offers margin trading and several educational resources in the form of webinars, podcasts, learning labs, and more to help investors learn about trading and the financial markets.
Available 24/7 via phone, chat, email, or mail.
Open AccountFirstrade Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
Firstrade was founded in 1985 and offers online and mobile trading of stocks, ETFs, options, mutual funds, fixed income products and more.
Firstrade’s Roth IRA took the second spot on our list for its zero-fee model. This account doesn’t charge any fees for account set-up, maintenance or inactivity. This account also has no minimum deposit or balance requirement and doesn’t charge commissions on stocks, options, and mutual funds. Bonus: for a limited time, Firstrade is offering $200 in transfer rebates for rolling over any existing IRA you may have into a Firstrade account.
For assistance, customers can reach a Firstrade representative via email, fax, and telephone, Monday through Friday, from 8:00 A.M. to 6:00 P.M. ET.
TD Ameritrade Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
TD Ameritrade first launched as Ameritrade in 1971 and later became TD Ameritrade in 2006 after being purchased by TD Waterhouse USA from TD Bank Financial Group. It offers self-directed brokerage accounts, professionally managed investment accounts, retirement accounts, education savings accounts, and more.
TD’s Roth IRA has zero annual account fees or management fees, and distributions for your account beneficiaries are tax free. TD also offers a suite of educational tools and resources, including an IRA selection tool and retirement calculator to help you decide how much you need to save for your retirement and select the account that meets your needs.
TD offers 24/7 phone support and chat support via Facebook Messenger and Twitter Direct Message.
Charles Schwab Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
Schwab opened its first branch in Sacramento, California, in 1975 and first launched its online trading platform at the start of the internet boom in the late 1990s and now executes an average of over 5 million trades per day.
Schwab’s Roth IRA has a lot to offer savers who are looking for extra educational resources and support to guide them on their retirement saving journey. Schwab offers a host of educational tools and resources such as calculators, market commentary, and investing ideas from Schwab experts. Savers can open an account with a $0 minimum deposit plus get $0 online listed equity trade commissions.
Schwab offers 24/7 phone and online chat support as well as in-person support at one of its more than 300 branches across the US.
Fidelity Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
First founded in 1946 and headquartered in Boston, Fidelity serves its customers through 12 regional sites across the globe and more than 200 Investor Centers. It prides itself on its low fees, quality customer service, and tools to help customers manage their everyday finances.
Fidelity’s Roth IRA puts savers in the driver’s seat and requires that they choose their own investments. As a result, this account doesn’t charge any advisory fees or annual account fees. Although, you may be responsible for fees that are specific to the assets you invest in.
Representatives are available to answer any questions regarding your brokerage account via telephone 24/7, live chat Monday through Friday between 8:00 a.m. and 10:00 p.m. ET, as well as Saturday and Sunday between 9:00 a.m. and 4:00 p.m. ET.
Merrill Edge Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0.45% |
Merrill Edge first launched in 2010 and is part of Bank of America’s retail banking division. It offers customers access, trading, brokerage, and banking services.
Merrill Edge’s Roth IRA scored a spot on our list thanks to its zero-dollar account minimum and lack of account fees. It also scored highly on our customer service scale for its 24/7 phone and chat support options. One drawback: this account does charge a 0.45% advisory fee, as well as a $49.95 account termination fee if you ever close your account.
Customers are able to get phone and live chat support 24/7, as well as in-person support at more than 2,000 Bank of America locations.
TIAA Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
TIAA Bank is a subdivision of TIAA, or the Teachers Insurance and Annuity Association which is headquartered in New York. TIAA offers both traditional and Roth IRAs, in addition to other investment and banking products and services.
TIAA’s Roth IRA doesn’t have a minimum deposit to open or maintain an account and doesn’t charge any management fees. Savers have access to a wide range of assets, including mutual funds, stocks, bonds, annuities, and more. However, this account did have the highest account closure fee on our list at $130.
TIAA representatives are available via email and by telephone, Monday through Friday from 8:00 a.m. to 5:00 p.m. ET.
E*Trade Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0.30% |
E*Trade first began in the 1980s and is now part of Morgan Stanley which is best known for its wealth management, investment advisory services, research, and market insights.
E*Trade’s Roth IRA doesn’t charge any annual account fees or tie account holders to a minimum balance requirement or deposit. And account holders pay $0 commissions for online US-listed stock, ETF, mutual fund, and options trades. E*Trade also offers a long list of investment options, including bonds, futures, and CDs.
Representatives are available via telephone 24/7.
SoFi Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
SoFi is an online bank headquartered in San Francisco that offers checking, savings, investing products, and more.
SoFi’s Roth IRA took the final spot on our list for its lack of account fees and minimums. However, this is more of a no-frills account as savers’ portfolios will only be made up of stocks and bonds.
Customers can request assistance 24/7 by reaching out to SoFi via phone, chat, email, and even sending general questions to the Twitter account at @SoFiSupport.
Fidelity Go® Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0%–0.35% |
First founded in 1946 and headquartered in Boston, Fidelity serves its customers through 12 regional sites across the globe and more than 200 Investor Centers. It prides itself on its low fees, quality customer service, and tools to help customers manage their everyday finances.
No, you’re not seeing double—Fidelity has two Roth IRAs that made the list. The Fidelity Go® Roth IRA made our list for offering everything that the basic Fidelity Roth IRA offers, plus a few added bonuses. With this account, Fidelity experts will evaluate your retirement goals and risk tolerance to select investments that make sense for your long-term plan. You’ll also have access to a team of Fidelity advisors for 1-on-1 coaching after your account balance has reached $25,000. Another key difference: this account invests in fee-free mutual funds. Beware: unlike Fidelity’s basic Roth IRA, this account charges a 0.35% advisory fee for accounts with balances of $25,000 or higher.
Customer support offerings are the same as our #5 pick: Representatives are available to answer any questions regarding your brokerage account via telephone 24/7, live chat Monday through Friday between 8:00 a.m. and 10:00 p.m. ET, as well as Saturday and Sunday between 9:00 a.m. and 4:00 p.m. ET.
What to know about Roth IRAs
Roth IRA’s function a bit differently than other types of retirement accounts. Withdrawals from your Roth IRA during retirement are tax-free, because as you save, you’ll pay taxes on the money you contribute to your account.
What’s more—you can withdraw contributions you’ve made to your Roth IRA without having to pay extra taxes or penalties if you meet certain age requirements and have had your account for more than five years.
It’s also important to note that Roth IRAs have certain contribution limits outlined by the IRS. For 2023, the total contributions you make each year to your Roth IRAs can’t be more than $6,500 ($7,500 if you’re age 50 or older). You’ll have to meet certain income requirements as well and this will vary depending on your tax filing status. To contribute to a Roth IRA, you must have a modified adjusted gross income (MAGI) of less than:
- $153,000 for single filers
- $228,000 for married and filing jointly
How to choose a Roth IRA
If you’re considering a Roth IRA for your retirement savings, you’ll want to consider the following before settling on one account:
Account fees and minimums: Read the fine print on the account you’re considering to determine if that institution or platform charges a minimum to open or maintain your account. Does that account offer any added perks that may justify a higher fee such as financial coaching or access to a wider range of investment options? Some accounts charge zero fees and don’t have any account minimums, while others have minimums in the thousands. If you’ve just started saving for retirement, you might prefer an account that requires less or no money upfront.
Investment assets: The assets available for you to invest in are not uniform across the board. Some Roth IRAs are made up of just one or two assets, while others can give you exposure to a more diverse mix of assets.
Educational resources: Some consumers may need a little more guidance when it comes to saving for retirement and figuring out how much they should be saving and how that should change over time. If you’re not sure what your strategy should be or how to prepare for retirement, it might be more beneficial to open an account with an institution that offers a suite of educational resources for extra guidance.
Alternatives to Roth IRAs
Roth IRAs are not the only retirement savings vehicles you can choose from. Some alternative options include:
- Traditional IRA: A tax-advantaged personal savings plan where contributions may be tax deductible.
- 401(k): An employer-sponsored retirement account that allows employees to contribute a portion of their pre-tax income to their account. These contributions grow tax-free until the funds are withdrawn during retirement.
- SEP IRA: This is a Simplified Employee Pension plan set up by your employer. Contributions made to this IRA are made directly by your employer.
- SIMPLE IRA: A Savings Incentive Match Plan for Employees set up by an employer. Under a SIMPLE IRA plan, employees can opt to make salary reduction contributions, and the employer makes matching or nonelective contributions.
- Payroll Deduction IRA: This IRA is set up by an employer. Employees make contributions by payroll deduction to an IRA (Traditional or a Roth IRA) they establish with a financial institution.
Our methodology
The Fortune RecommendsTM team compared Roth IRAs from almost 20 different financial institutions and platforms. Our top picks are available across the U.S., so you can sign up for an account no matter where you’re located.We ranked the retirement accounts using the following categories:
How we scored Roth IRAs
| Minimum opening deposit requirement (10%) | While the IRS does not require a minimum deposit for Roth IRAs, many financial institutions have their own account minimums in place. We favored accounts with lower or no minimum opening deposits. |
| Minimum balance requirement (10%) | The IRS does not require a minimum balance for Roth IRAs, however your financial institution may have its own rules. We ranked accounts with lower or zero minimum balance requirements higher on our list. |
| Annual account fee (10%) | Some financial institutions require that account holders pay an annual fee for account maintenance and services. |
| Advisory fee (25%) | An annual advisory fee is charged by some institutions to cover the services provided by the financial platform and its professionals. The fee is usually charged as a percentage of assets under management on the platform. |
| Investment options (25%) | We gave each account 1 point for each type of asset available to clients. This included fixed income and bonds, mutual funds, REITs, ETFs, options, CDs, and money market funds. |
| Account termination fee (15%) | Another fee charged by some platforms and financial institutions is an account closure or termination fee. Accounts with lower or no closure fee ranked higher on our list. |
| Customer service (5%) | Top picks offer customers various ways to get in contact: chat support, by phone, or even email; phone support was most highly rated by our team. |
The rates, fees, and minimum deposit requirements for Roth IRAs are subject to fluctuation at the discretion of the individual banks and brokerages on our list.
Frequently asked questions
What’s the minimum amount needed to open a Roth IRA?
The IRS does not require a minimum deposit to open a Roth IRA. However, your financial institution may have its own rules and requirements to open a Roth IRA.
What’s the difference between a Roth IRA and a traditional IRA?
The key difference between the two account types is that a Roth IRA allows you to make after-tax contributions that will grow tax-free. You’re also eligible to make tax- and penalty-free withdrawals after a certain age. Contributions made to a traditional IRA can be made with pre-tax or post-tax dollars and that money will grow tax-deferred. You won’t pay taxes on that money until you make a withdrawal.
Can you withdraw money from a Roth IRA?
You can withdraw contributions made to your Roth IRA without incurring any taxes or penalties. However, you can only withdraw Roth IRA earnings after age 59 ½ and after you’ve had the account for five years in order to avoid paying taxes and penalties.
