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Start savings for retirement with the best Roth IRAs from top brokerage platforms to unlock high-quality retirement planning services, after-tax advantages, and automatic rebalancing for long-term wealth building.
Top-Rated Roth IRA Accounts of 2024
Here are our top picks for the best Roth IRA accounts 2024, as picked by Business Insider's editors.
Check out our Roth IRA vs traditional IRA comparison>>
Charles Schwab IRA: Best Roth IRA Overall
$0
0%; robo-advice: $0 ($30 monthly fee for Schwab Intelligent Portfolios Premium)
Traditional IRAs, Roth IRAs, rollover IRAs, SEP IRAs, SIMPLE IRAs, inherited IRAs, and custodial IRAs
- Commission-free stocks, ETFs, and options
- No account minimums
- Variety of account types
- No cryptocurrencies
- Fees for certain mutual funds, futures, and other fixed income assets
Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners. It's great for all types of investors — including active traders, passive investors, and retirement-focused individuals — in search of low costs and access to a variety of trading tools and platforms.
Charles Schwab IRA- Consider it if: You're looking for access to multiple self-directed or automated retirement and investing accounts; you value retirement planning resources and mobile access.
- App store rating: 4.8 iOS/3.8 Android
- Awards: Investor's Business Daily recognized Charles Schwab as one of its Most Trusted Financial Companies for 2021.
Schwab takes a holistic approach to retirement savings by offering a range of investment options, strategies, and resources for all-around financial wellness. Charles Schwab's Roth IRAs are free to set up and manage.
Explore Charles Schwab's professional portfolio management solutions for simplified trading techniques, tax efficiency, and mitigated portfolio risk and volatility. Schwab provides Roth IRA investors with retirement planning calculators, real-time market commentary, and access to Schwab retirement specialists.
The platform's retirement-specific educational content includes Charles Schwab's pre-retirement playbook for step-by-step advice, the Money Talk podcast, and a collection of articles and guides. Additional features include Schwab's 24/7 customer service, user-friendly interface, and top-notch security.
What to look out for The $0 commission rule doesn't apply to large block transactions that require restricted stock transactions, special handling, trades placed on foreign exchange, transaction-fee mutual funds, futures, and other fixed-income investments.
Fidelity IRA: Best Roth IRA for Retirement Planning
$0
0%; robo-advice: $0 for balances under $10,000; $3/month for balances between $10,000 and $49,999; 0.35% for balances over $50,000
Traditional IRAs, Roth IRAs, rollover IRAs, Roth IRA for Kids, SEP IRAs, and SIMPLE IRAs
- Commission-free stocks, ETFs, and options
- No minimums; fractional shares
- Thousands of no-transaction-fee mutual funds
- Fidelity Go automated accounts cost more for higher balances
- Expensive representative-assisted trade fee
Fidelity is one of the best online brokerages for retirement savings. It has great features for all types of investors and traders.
Fidelity IRA- Consider it if: You're solely focused on retirement planning strategies and want commission-free trades.
- App store rating: 4.8 iOS/4.3 Android
Fidelity is an affordable retirement brokerage offering a robust selection of digital financial services, retirement planning strategies, and commission-free trades. In addition to its Roth IRAs, Fidelity offers several other retirement accounts, including traditional, rollover, Roth, and custodial IRAs. There are also small business retirement plans available.
Fidelity Roth IRAs have no advisory fees (for balances under $25,000) or minimum deposit requirements. Accounts can be opened as a DIY investing account or robo-advisor. Eligible Fidelity brokerage or retirement accounts can convert to a Fidelity Go account to access automatic withdrawals and deposits.
Fidelity Roth IRAs invest in a blend of Fidelity Flex mutual funds and other assets. Fidelity Flex funds do not charge management fees or fund expenses. Plus, there are no expense ratios.
What to look out for: If you choose Fidelity Go, you'll pay $0 as long as you've got an account balance below $25,000. You'll pay a 0.35% fee if you've got more than $25,000.
Merrill Edge IRA: Best Roth IRA for Active Trading
$0 ($1,000 Guided Investing; $20,000 Guided Investing with Advisor)
0% (0.45% to 0.85% for robo-advice and guided portfolios)
- No minimums or commissions for self-directed accounts
- Investment insights and research provided by multiple third-party companies
- Can link Bank of America accounts
- 24/7 customer service with live chat available
- No specialty investments like cryptocurrency, futures, or precious metals
- Automated account has high advisory fee
Merrill Edge lets you invest for your minor without running into any minimum opening deposits, annual fees, or account maintenance fees. Merrill Edge also offers commission-free stocks, ETFs, and options.
Merrill Edge investment account- Promotion: Get up to $600 when you open a self-directed account.
Merrill Edge's offers no-cost Roth IRAs for tax-free growth and flexible withdrawals. Other available Merrill Edge retirement plans include traditional, SEP, and SIMPLE IRAs. You can also open a tax-qualified 401(k), 403(b), and 457(b).
With Merrill Edge's Roth IRA, you can invest in various securities. A self-directed Roth IRA has no trade or balance minimums for online stock, ETF, and option trades. There are three investment platforms: Merrill Edge Self-Directed, Merrill Guided Investing, or Merrill Guided Investing with an advisor.
You can take advantage of 24/7 customer service support and live chat. Merrill Edge also gets you access to a personal retirement calculator, a retirement account selector tool, a Roth IRA conversion calculator, and 401(k) rollovers.
What to look out for: Self-directed Roth IRA accounts come with $o trading fees and commissions, but you'll pay more to set up a professionally managed portfolio.
TD Ameritrade: Best Roth IRA for Mobile Trading
$0 ($5,000 or $25,000 for managed accounts through Schwab)
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
- Free commissions on stock, ETF, and option trades
- No minimum requirement to get started with brokerage account
- Large investment selection
- Research and educational resources available
- No fractional shares
- Robo-advice and managed portfolios are more expensive
- No cryptocurrencies
TD Ameritrade is great for active traders interested in using multiple trading platforms. As one of the best online brokerages, TD Ameritrade offers secure storage for investments and other assets.
TD Ameritrade- Promotion: None at this time.
- App store rating: 4.5 iOS/3.6 Android
- Consider it if: You want multiple apps for different trading experiences and goals
TD Ameritrade's Roth IRAs are free to open, and you can choose from several commission-free ETFs, fixed-income investments, and no-transaction-fee mutual funds. You can also utilize educational resources such as exclusive videos and webcasts.
In addition, you can skip out on account fees, and you'll have access to third-party research and analysis from Morningstar Investment Management, CFRA, and Market Edge. Get TD Automated Plus for access to a team of TD professional advisors.
Open a TD Ameritrade Automated Investing account for personalized portfolio recommendations tailored to your goals and risk tolerance. TD automated IRAs invest in a mix of ETFs, mutual funds, and cash for long-term growth.
What to look out for: You won't pay any fees for a self-directed Roth IRA. If you use a managed TD Ameritrade IRA, you'll have to meet a high minimum requirement compared to other platforms on this list.
Betterment IRA: Best Roth IRA for Robo-Advice
$0 to open, $10 to start investing ($100,000 for premium plan)
0.25% digital plan; 0.40% for premium plan
Traditional IRAs, Roth IRAs, rollover IRAs, and SEP IRAs
- No minimums for digital plan
- Tax-loss harvesting, goal-focused investing strategies, charitable giving, and socially responsible investing
- Certified financial planners available
- Can only invest in stock ETFs and bond ETFs
- Financial advisor consultations cost more for those without premium plan
Betterment is best for hands-off investors who want to take advantage of professionally built, personalized ETF and cryptocurrency portfolios. The platform offers CFP access, so it could suit those in search of additional guidance from human advisors.
Betterment IRA- Betterment offers rollover IRAs, traditional and Roth IRAs, SEP IRAs, and more.
Betterment offers personalized investing and retirement resources to help users meet specific savings goals and is a great Roth IRA for beginners. Open a Betterment Roth IRA to unlock tax-free growth, automated portfolio tools, and personalized retirement plans.
Betterment provides personalized retirement advice from a team of Betterment experts. Automated retirement planning tools include automatic trading, rebalancing, and dividend reinvesting. Betterment Roth IRAs also authorize direct IRA transfers with no tax impact. You'll have access to several crypto portfolios and socially responsible investment options.
Betterment will automatically rebalance your account and reinvest dividends on your behalf. The robo-advisor offers multiple other portfolios — Betterment Core, Goldman Sachs Smart Beta, and Innovative Technology — that mix your funds into a diversified collection of assets with different market goals.
What to look out for: The investing platform specializes in automated investment management, so it may not be the best fit for active traders and DIY investors.
SoFi Invest: Best Roth IRA for Beginner Investors
$0
0%
Traditional IRAs, Roth IRAs, and SEP IRAs
- No minimums or fees
- Certified financial planner access
- Cryptocurrency trading available
- No tax-loss harvesting
- Limited investment selection
SoFi is a great choice for traditional IRAs. In addition to other investing, loans and savings options, the advisor provides Roth and SEP IRAs.
SoFi IRA- Consider it if: You're new to investing and want a variety of low-cost retirement, investing, and savings options.
- App store rating: 4.8 iOS/4.3 Android
SoFi is a competitive, low-cost choice for those interested in opening a Roth IRA. SoFi Roth IRAs are eligible as self-directed and automated IRA accounts. There are no maintenance or commission fees. Plus, no minimums or balance requirements.
Roth IRAs with SoFi come with free access to certified financial planners (CFPs) and goal-based portfolios with SoFi automated IRAs. Diversify your investment portfolio with a custom blend of stocks, ETFs, alternative investments, and more.
SoFi also provides several other spending and saving account options, as well as guides, calculators, and resources for account holders. Overall, the investment platform offers active and automated Roth, traditional, and SEP IRAs.
What to look out for: SoFi primarily offers stocks and ETFs. This advisor may not be the best fit if you're looking for other investments, such as mutual funds.
Wealthfront IRA: Best Roth IRA for Goal Planning
$1 ($500 for automated investing)
$0 for stock trades. 0.25% for automated investing (0.06% to 0.13% for fund fees)
- Low annual fee for investment accounts; crypto trust investments available
- Tax-loss harvesting, portfolio lines of credit, 529 college savings plans available
- Cash account
- Mobile app and investing and retirement tools
- You need at least $100,000 to utilize additional investment strategies
- No human advisor access
Wealthfront is one of the best robo-advisor options if you're in search of low-cost automated portfolio management, and one of the best socially responsible investing apps for features like tax-loss harvesting, US direct indexing, and crypto trusts.
Wealthfront- Consider it if: You're balancing several goals and want to streamline your finances.
- Promotion: Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus.
Open a Wealthfront's for a personalized portfolio of ETFs to match your goals, risk tolerance, and time horizon. Taxable Wealthfront Roth IRAs are automated investment accounts with a wealth of retirement-focused tools and planning services.
Wealthfront IRAs get you access to goal-based planning and tax-loss harvesting strategies without paying any trading commissions. You'll need a higher account balance to use strategies such as stock-level tax-loss harvesting, risk parity, and smart beta investing.
Though Wealth IRA investment services feature a substantial annual fee and a $500 minimum deposit, the robo-advisor offers various account types and investment strategies. In addition to its Roth IRAs, Wealthfront offers traditional IRAs, SEP IRAs, 401(k) rollovers, crypto trusts, 529 college savings plans, and multiple taxable accounts. The advisor even offers a high-interest cash account.
What to look out for: You can't open a Roth IRA with Wealthfront unless you've got at least $500. You'll also have to pay a 0.25% account fee, and – if you utilize the advisor's low-cost investment funds – you'll pay a 0.13% fee.
How to Choose the Best Roth IRA Account
As you start thinking about retirement, you'll likely consider various of the best retirement plans, namely IRAs and 401(k)s or other retirement plans. Traditional and Roth retirement plans provide tax-advantaged savings options, but you'll fund your account with pre-tax dollars if you choose a traditional IRA or 401k. Roth IRAs, as well as Roth 401(k)s, are funded with after-tax contributions.
For 2024, single individuals can contribute if they earn $161,000 or less, and married couples are eligible for contributions if they earn $240,000 or less (the 2023 limits were $153,000 and $228,000, respectively).
What is a Roth IRA?
Roth IRAs are individual retirement accounts funded by after-tax dollars (aka already taxed money). They are one of the most popular retirement plans offered by online brokerages and offer tax-free growth and withdrawals in retirement.
One of the best perks of a Roth IRA is that you can withdraw your original funds (minus any gains) from your account without penalty, essentially making it an emergency fund. This flexibility can prove especially beneficial for investors with tight budgets.
Roth IRA FAQs
That depends on your particular financial situation and savings goals. For instance, if you expect to pay more in taxes as you get older, a Roth IRA could be more suitable than a traditional IRA. This is because you'll pay immediate taxes on any contributions you make. Once you reach age 59 ½ , you won't have to pay taxes on any withdrawals. You could incur a large tax bill if you defer your account's taxes until age 59 ½ .
There's not necessarily a wrong age to contribute to a Roth IRA. Roth IRAs are funded with after-tax dollars so you won't pay withdrawal tax. Once you reach retirement age, you can start withdrawing from your Roth IRA penalty-free.
401(k)s and Roth IRAs are good retirement savings plans, but the best depends on your preferences. With a 401(k), your employer will cover the management fees while you are employed in the company. Plus, you may receive an employer-contribution match. A Roth IRA, however, offers more investment options and account flexibility. IRA management fees are lower than 401(k)s.
The disadvantage of a Roth IRA is that it is funded with after-tax dollars, so you won't benefit from the initial tax break that a traditional IRA offers. On the upside, the money in your account grows tax-free. That means you won't pay tax when you withdraw.
Roth IRAs are a good idea for folks wanting to contribute after-tax dollars into a retirement savings account. The money in your Roth IRA grows tax-free, so you won't pay tax on the amount withdrawn. Roth IRAs are best for folks expecting to be in a higher tax bracket when they retire.
Roth IRAs are tax-advantaged retirement savings accounts that allow you to make after-tax contributions without meeting minimum distribution requirements. Whereas traditional IRAs are tax-deferred vehicles that rely on pre-tax dollars, Roth IRAs allow your money to grow tax-free. This means you won't have to pay taxes or penalties on any withdrawals after age 59 ½.
Why You Should Trust Us: Our Expert Panel on The Best Roth IRA Accounts
We interviewed the following three retirement and investing experts for our guide to the best Roth IRA accounts:
- Charlotte Geletka, CFP, CRPC, managing partner at Silver Penny Financial Planning
- David Brooks, CIS, CHRS, founder and president at Retire SMART
- Tanya Nichols, CFP, founder and president at Align Financial
We're focusing on what makes a Roth IRA account most useful. When comparing accounts, it's important to consider fees, investment choices, retirement planning resources, and more. Here's what they had to say about Roth IRA accounts. (Some text may be lightly edited for clarity.)
What are the advantages and disadvantages of opening a Roth IRA?
Charlotte Geletka, CFP, CRPC:
"Since its inception, many mass media personalities will tell you that the Roth is the only way to go. The Roth IRA is not one size fits all. Roth IRAs [work] best for people who either A) have a very long time horizon until retirement, or B) are in a low tax bracket now and plan to be in a higher tax bracket in retirement."
David Brooks, CIS, CHRS:
"The big advantage that many people don't realize is [that] you can get access to your money at any time with no penalty whatsoever. So if you contribute to a Roth IRA, and you are younger than 59 ½...if you come up on an emergency [and] you need to pull your money back out, you're always entitled to pull out your contributions with no tax and no penalty."
Tanya Nichols, CFP:
"One of the downsides of Roth IRAs is that they're not available to everyone. Individuals earning more than $161,000 annually (in 2024) and married couples earning more than $240,000 may not be eligible to make full contributions, which diminishes the potential benefits."
What makes a Roth IRA account good or not good?
Charlotte Geletka, CFP, CRPC:
"If you have a Roth IRA in retirement, it is a great way to take distributions without increasing your tax bracket and utilize tax planning strategies. A Roth IRA is a really powerful retirement savings tool, but it is not one size fits all. That's why it is a great idea to speak to a financial advisor."
David Brooks, CIS, CHRS:
"The Roth has huge advantages for younger investors over a traditional IRA. The myth is that you'll be in a lower tax bracket when you're retired, so that's why the traditional side is so popular. But I can tell you, from two-plus decades of doing retirement-specific planning, that's a lie."
Tanya Nichols, CFP:
"A Roth IRA is not inherently good or bad. Like all financial vehicles, the pros and cons should be considered in light of each person's financial circumstances and objectives. The benefits can vary meaningfully depending on your income, age, current tax rate, and future prospects."
Who should open a Roth IRA account?
Charlotte Geletka, CFP, CRPC:
"Young people who have a long time horizon to let the money grow. It also works well for people who have less income now but anticipate a significant increase in salary as they advance in their career."
David Brooks, CIS, CHRS:
"Everyone. And I mean everyone. There's some confusion behind who can have a Roth IRA as well. Some people believe [that] because they don't have any income, or they have too much income, they're not entitled to have a Roth IRA. That is incorrect."
Tanya Nichols, CFP:
"If you think your future tax bracket will be higher than your current tax bracket and you can maximize your contributions to a Roth IRA based on your current income level, you're likely to benefit from the tax-free withdrawal feature in retirement.
"It's not a great tool unless it's really designated for long-term retirement savings."
Is there any other advice you'd offer someone who's considering opening a Roth IRA?
Charlotte Geletka, CFP, CRPC:
"Another cool thing about a Roth is that you have until April of the following year to see if you are eligible to contribute to a Roth and have the additional savings to contribute to a Roth."
David Brooks, CIS, CHRS:
"Understand what the fees and expenses are going to be on your account. There is nothing wrong with paying for quality advice, but do not open an account with a commission-based broker. I think you would rather use a fiduciary."
Tanya Nichols, CFP:
"Before you decide which savings tool you're going to use - make sure you have a savings account of up to 90 days of living expenses set aside, and that you don't have any revolving credit card debt. Good habits about spending are just as important (maybe even more) than saving.
"Make sure that you know that the money you're putting aside is money that should be set aside for a really long time."
Methodology: How We Chose the Best Roth IRAs
We used Business Insider's methodology for rating investment platforms when reviewing online brokers that offer 401(k) rollovers to find the best platforms for investment options, low fees and minimums, portfolio types, human advisor access, and customer service.
We also favored platforms offering various other features and products, such as tax-loss harvesting, robo-advisor access, and market research. Investment platforms are given a rating between 0 and 5.
