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.
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 |
Firstrade Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
TD Ameritrade Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
Charles Schwab Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
Fidelity Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
Merrill Edge Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0.45% |
TIAA Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
E*Trade Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0.30% |
SoFi Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0% |
Fidelity Go® Roth IRA
| Account minimum | $0 |
| Annual account fee | $0 |
| Advisory fee | 0%–0.35% |
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:
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.
