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You can set up Roth IRAs through most banks, and through some of the best online brokerages. As with traditional IRAs, these accounts include an annual contribution limit of $7,000, for those under 50, and $8,000 (people 50 and older).
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. You can pick and choose your Roth IRA investment portfolio in a self-directed IRA, or have an expert-curated automated IRA based on your risk tolerance and time horizon.
Best Roth IRAs in 2024
- Charles Schwab IRA: Best Roth IRA overall
- Fidelity IRA: Best Roth IRA for retirement planning
- Merrill Edge IRA: Best Roth IRA for active trading
- TD Ameritrade IRA: Best Roth IRA for mobile trading
- Betterment IRA: Best Roth IRA for automated investing
- SoFi IRA: Best Roth IRA for beginner investors
- Wealthfront IRA: Best Roth IRA for goal planning
Here are our top picks for the best Roth IRAs by Business Insider's editors in 2024.
Best Roth IRA Overall
Charles Schwab IRA
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. Invest in the following securities:
- Stocks
- Bonds
- CDs
- ETFs
- Mutual funds
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 a foreign exchange, transaction-fee mutual funds, futures, and other fixed-income investments.
Charles Schwab review
Best Roth IRA for Retirement Planning
Fidelity IRA
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.
Fidelity Investments Review
Best Roth IRA for Active Trading
Merrill Edge IRA
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 a range of stocks, bonds, options, ETFs, and mutual funds. A self-directed Roth IRA has no trade or balance minimums for online stock, ETF, and option trades. However, additional fees and options contracts still apply.
Another perk of Merrill Edge is that it gives you a choice between three investment platforms: Merrill Edge Self-Directed, Merrill Guided Investing, or Merrill Guided Investing with an advisor. Take advantage of 24/7 customer service support and live chat. You can even get up to a $600 bones when you invest in a new Merrill Guided Investing account.
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. For example, Merrill Edge's Guided Investing fees range from 0.45% to 0.85%.
Merill Edge Investing Review
Best Roth IRA for Mobile Trading
TD Ameritrade IRA
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 a $1,000 minimum 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 $1,000 minimum requirement and an even higher $25,000 minimum for TD Ameritrade Plus.
TD Ameritrade review
Best Roth IRA for Automated Investing
Betterment IRA
Betterment offers personalized investing and retirement resources to help users meet specific savings goals. Open a Betterment Roth IRA to unlock tax-free growth, automated portfolio tools, and personalized retirement plans.
As with most other Roth IRA accounts, you won't have to meet minimum account size requirements, but you will be responsible for an annual fee of 0.25% (or $4 per month). With a 0.15% add-on fee, Betterment provides personalized retirement advice by a team of Betterment experts.
Automated retirement planning tools for Betterment include automatic trading, rebalancing, and dividend reinvesting.Betterment Roth IRAs also authorize direct IRA transfers, which have 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.
Betterment Review
Best Roth IRA for Beginner Investors
SoFi Invest
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.
SoFi IRAs are one of the only individual retirement plans offering a matching contribution on all IRA deposits. Earn a 2% match on all IRA contributions with SoFi until April 15, 2024, tax day.
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, and the company offers several 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.
SoFi Invest review
Best Roth IRA for Goal Planning
Wealthfront IRA
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 Wealthfront's investment services feature a 0.25% annual fee and $500 minimum deposit, the robo-advisor offers a wide range of 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.
Wealthfront Review
How does a Roth IRA work?
As you start thinking about retirement, you'll likely consider various one 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).
Roth IRA Tips
What is better a 401(k) or a Roth IRA?
401(k)s and Roth IRAs are good retirement savings plans, but the best one depends on your personal 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.
What are the disadvantages of a Roth IRA?
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.
Are Roth IRAs a good idea?
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, which means 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.
What is a Roth IRA account?
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 circ*mstances 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 Personal FinanceInsider'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 that offered a range of 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.
Other Roth IRA Accounts We Considered
- Interactive Brokers: You probably won't have trouble finding a suitable account at Interactive Brokers. The brokerage offers the following retirement accounts: Roth IRAs, Roth Inherited IRAs, traditional IRAs, traditional inherited IRAs, traditional rollover IRAs, and SEP IRAs. The only drawback is the cost. You'll need at least $5,000 to set up your Roth IRA.
- Vanguard: Vanguard is also a competitive option for investing and retirement accounts, but most of its retirement funds require at least $1,000 to get started.
- AllyInvest: AllyInvest requires no account minimums, and it offers commission-free trades on stocks, options, and ETFs. The company also provides several other investment options, but it falls short when it comes to no-transaction-fee mutual funds.
- E*TRADE: In addition to traditional IRAs, E*TRADE's IRA selection includes Roth IRAs, rollover IRAs, beneficiary IRAs, IRAs for Minors, and E*TRADE Complete IRAs. Its IRAs also don't have any minimum requirements (unless you use Core Portfolios to automate them), but you'll pay $19.99 each for transaction fee mutual funds, and you'll incur a $49.99 charge if you hold no-load, no-transaction-fee funds for less than 90 days.
- M1 Finance: This investing platform provides several competitive features – automated investing, fractional shares, and low trading fees – but you won't have access to professional financial planners. You'll also need a $500 initial minimum investment for retirement accounts.
- tastytrade: This online brokerage offers a wide selection of IRAs, including a Roth IRA, traditional IRAs, SEP IRAs, and beneficiary IRAs. Its main focus is on options and futures trading, but it also offers stocks, ETFs, and cryptocurrencies.
- Ameriprise Financial Investments: Ameriprise Financial Services is an independent broker/firm that offers multiple managed investment accounts that can be opened as a traditional IRA, Roth IRA, Simple IRAs, SEP IRAs, or as a college savings account.
Junior Investing Reporter
Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022. Her love of books, research, crochet, and coffee enriches her day-to-day life.
Rickie Houston was a senior wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products.Before Insider, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He's contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News.He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.
