Fee example: buying $5,000 of crypto at iTrustCapital's 1% transaction fee costs $50, and selling $5,000 costs another $50. The minimum initial contribution is $1,000. Fees as published by iTrustCapital on October 16, 2026.
IRA
17,691 customers chose this
Annual account fee$0
Stock and ETF commission$0 commissions on stock and ETF trades in self-directed SoFi IRAs (options also commission-free; regulatory and other fees may apply)
Minimum deposit$5
Account TypesTraditional IRA, Roth IRA, SEP IRA, 401(k) and IRA rollovers, Roth conversions
IRA custodianApex Clearing Corporation (clearing and custody of all securities)
A self-directed SoFi IRA has a $0 annual fee, $0 commissions on stock and ETF trades and a $5 minimum to begin investing; a $10,000 automated (robo) IRA at the 0.25% advisory fee costs $25 a year, with a $50 minimum. A $25 fee applies for every 6 months without a login. SoFi's 1% match on IRA deposits by ACH or SoFi Bank transfer is an offer it can end at any time; matched deposits must stay 5 years, SEP IRAs excluded (SoFi fee schedule and IRA match terms, November 6, 2026).
IRA
519 customers chose this
Minimum deposit$5
Account TypesTraditional IRA, Roth IRA, SEP IRA, 401(k) and IRA rollovers
IRA custodianForge Trust (f/k/a IRA Services Trust Company), IRA custodian and administrator for Acorns Later accounts
Acorns Later comes with every Acorns subscription: Bronze at $4 a month ($48 a year), Silver at $8 a month ($96 a year) or Gold at $12 a month ($144 a year), whatever the balance (Acorns pricing page, November 6, 2026).
IRA
23 customers chose this
Annual account fee$0
Stock and ETF commission$0 for online U.S. stock and ETF trades (options $0 plus contract fees)
Minimum deposit$0
Account TypesTraditional IRA, Roth IRA, SEP IRA, Inherited IRA, 401(k) and IRA rollovers, Roth conversions
Number of cryptocurrencies4
IRA custodianFidelity Management Trust Company (IRA custodian); securities held by National Financial Services LLC; crypto in a Fidelity Crypto IRA held by Fidelity Digital Assets, N.A.
Online U.S. stock and ETF trades cost $0, and a Fidelity retail IRA has no account fee and no minimum to open (Fidelity commissions and Roth IRA pages, November 6, 2026).
IRA
Annual account fee$25
Stock and ETF commission$0 for online stock and ETF trades ($25 if broker-assisted, under $1 million in Vanguard assets)
Account TypesTraditional IRA, Roth IRA, SEP IRA, Inherited IRA, 401(k) and IRA rollovers, Roth conversions
Online stock and ETF trades cost $0; the $25 annual account service fee is waived when you choose e-delivery of documents (Vanguard Brokerage Services fee schedule effective July 10, 2026, read November 6, 2026).
We can't guarantee the data is fully accurate every day.
Filters
Minimum deposit
Account Types
Investment options
Features
Platforms
Support channels
Product Statistics
A complete breakdown of all data points across the products in this comparison to help you make the right decision.
SIPC protection
9 (100%)
Cold storage
1 (11.1%)
Traditional IRA
9 (100%)
Roth IRA
9 (100%)
SEP IRA
9 (100%)
Inherited IRA
6 (66.7%)
401(k) and IRA rollovers
9 (100%)
Roth conversions
8 (88.9%)
Minimum deposit
$0 - $1,000 ($190)
Annual account fee
$0 - $25 ($4.17)
Crypto transaction fee
1% - 1% (1%)
Advisory fee
0.25% - 0.25% (0.25%)
Account transfer-out fee
$0 - $100 ($42.50)
Stocks
7 (77.8%)
ETFs
9 (100%)
Mutual funds
5 (55.6%)
Bonds and Treasuries
4 (44.4%)
Cryptocurrencies
2 (22.2%)
Precious metals
2 (22.2%)
Number of cryptocurrencies
4 - 100 (52)
Automated investing
5 (55.6%)
Automated recurring contributions
7 (77.8%)
Staking in IRA
1 (11.1%)
24/7 crypto trading
1 (11.1%)
Fractional shares
5 (55.6%)
Web
9 (100%)
iOS
9 (100%)
Android
9 (100%)
Desktop
3 (33.3%)
Live chat
5 (55.6%)
Email
4 (44.4%)
Phone
9 (100%)
24/7 Support
2 (22.2%)
Community forums
1 (11.1%)
Branch Access
2 (22.2%)
Statistics based on 9 IRAs products in our database.
Financer's Choice
iTrustCapital
No setup, monthly, or annual fees, and stocks and ETFs trade with zero commission. Crypto transactions cost 1% on every buy and every sell.
Phone support runs Monday to Friday, 7 AM to 5 PM PT, with separate lines for new clients and tech support. There's a help center with 136 articles and a request form, and the company says its support team is 100% U.S.-based.
Traditional, Roth, and SEP IRAs, plus rollovers, IRA transfers, inherited IRAs by transfer, and in-kind distributions. Cash comes in only by ACH or wire, and you need $1,000 to start. Crypto you hold on an exchange or in a wallet can't fund the IRA.
Trustpilot rates iTrustCapital 5.0 (October 16, 2026) with over 9,800 reviews, and recent customers praise named support staff and how security issues were handled. Google rates iTrustCapital 4.9 (October 12, 2026) with over 7,000 reviews.
An IRA works the same way at every provider, but what you pay and what you can hold depend on where you open it. Providers differ in fees, in how much you need to start, in the IRA types they open and in the investments they allow.
We compared nine IRA providers on fees, minimums, account types and investment options, using figures from their own pages as of November 6, 2026. There is no single winner: the right fit depends on whether you pick your own investments, want a managed portfolio or want alternative assets such as crypto.
Featured Partner: iTrustCapital (Sponsored)
iTrustCapital is a financial technology platform for self-directed Traditional, Roth and SEP IRAs. As of November 2026, it offers access to 100+ cryptocurrencies, precious metals such as gold and silver, and 10,000+ stocks and ETFs. Available assets are subject to change.
In November 2026, its pricing page listed $0 monthly or annual fees, a 1% fee on each crypto buy and each sell, and $0 commission on stock trades. The minimum initial contribution is $1,000, and each Roth conversion costs $75. All fees are subject to change, and our iTrustCapital review has the full breakdown.
Fortis Bank acts as qualified custodian for your IRA assets. iTrustCapital is not an exchange, custodian, trust company, broker-dealer, or investment adviser, and it does not provide legal, investment, or tax advice. Our crypto IRA guide explains the IRS rules for holding crypto in an IRA.
$0 setup, monthly, and annual account fees
100+ cryptocurrencies, precious metals such as gold and silver, and 10,000+ stocks and ETFs
Traditional, Roth, and SEP IRAs, with rollovers and in-kind crypto IRA transfers
Crypto trading 24/7
1% fee on every crypto buy and every crypto sell
$1,000 minimum initial contribution
$75 fee for each Roth conversion
Stocks and ETFs only trade in traditional market hours
IRA Providers Compared
Here is what each provider offers in an IRA, with figures from its own pages as of November 6, 2026. The order below is not a ranking.
Fidelity: Good for No Account Fee and Zero-Expense-Ratio Funds
A Fidelity retail IRA has no account fee and no minimum to open, and you can start investing with as little as $1. Online U.S. stock and ETF trades cost $0, and Fidelity ZERO index funds such as FNILX have a 0% expense ratio and no minimum to invest.
If you would rather not pick investments, Fidelity Go manages an IRA for a $0 advisory fee under $25,000 and 0.35% from $25,000. For crypto, a linked Fidelity Crypto IRA holds Bitcoin, Ethereum, Litecoin and Solana with a 1% trading fee; it is not available in California or Oregon, per Fidelity (as of November 6, 2026).
No account fee and no minimum to open a retail IRA
$0 online U.S. stock and ETF trades
Zero-expense-ratio index funds such as FNILX
Phone support 24/7, plus live chat with an associate seven days a week
Crypto sits in a separate, linked Fidelity Crypto IRA with four coins and a 1% trading fee
Precious metals are restricted to certain investments in an IRA, with a $1,000 minimum purchase
Option trades carry contract fees
A quarterly fee of up to $5 can apply to dormant IRAs with less than $100
Charles Schwab: Good for In-Person Help and 24/7 Service
Schwab charges no fee to open or maintain any of its IRA types, and you can open one with a $0 minimum deposit. Online stock and ETF trades cost $0, options cost $0.65 per contract, and you can choose from 4,000+ no-transaction-fee mutual funds.
Schwab pairs online investing with 400+ U.S. branches and 24/7 service, and a dedicated rollover consultant helps with 401(k) rollovers. For a managed IRA, Schwab Intelligent Portfolios charges no advisory fee and no commissions, with a $5,000 minimum.
$0 to open and no maintenance fee on any Schwab IRA type
400+ U.S. branches and 24/7 service
4,000+ no-transaction-fee mutual funds
Dedicated rollover consultant for 401(k) rollovers
$50 to transfer a full account out
Options cost $0.65 per contract
Schwab Intelligent Portfolios needs $5,000 to open
Vanguard: Good for Long-Term Index Fund Investors
If you favor index investing, costs matter: Vanguard puts its asset-weighted average expense ratio at 0.07%, against an industry average of 0.44% (as of December 31, 2025). Its Target Retirement Funds give you a complete, professionally managed mix in a single fund.
There is no charge to open a Vanguard IRA, but each investment has its own minimum: Vanguard ETFs from $1 and Vanguard mutual funds from $3,000 to $50,000. Online stock and ETF trades cost $0. For fund ideas, see our best Vanguard ETFs guide.
Low average fund expense ratios: 0.07%, as of December 31, 2025
Vanguard ETFs from $1
Target Retirement Funds as a one-fund option
Digital Advisor manages an IRA from $100 for a 0.20% (index) or 0.25% (active) gross advisory fee
Vanguard mutual funds need $3,000 to $50,000 to start
A $25 annual account service fee can apply unless you choose e-delivery of documents
A full transfer out or account closure can cost $100
Broker-assisted trades cost $25 (under $1 million in Vanguard assets)
Interactive Brokers: Good for Global Market Access
Interactive Brokers lets you trade across 175+ markets worldwide, and you can open the IRA in any base currency. With IBKR Lite, US exchange-listed stock and ETF trades cost $0; IBKR Pro Fixed costs USD 0.005 per share, with a USD 1.00 minimum per order.
You can choose a cash or a margin IRA; per IBKR, a margin IRA allows no cash borrowing or short selling. IBKR charges nothing for incoming or outgoing ACATS transfers. Its FAQ states that cryptocurrency trading is not offered in IRA accounts (IBKR pages as of November 6, 2026).
Trading across 175+ markets worldwide
$0 US stock and ETF trades with IBKR Lite
No IBKR fee for incoming or outgoing ACATS transfers
Traditional, Roth, SEP, SIMPLE and inherited IRA types
Cryptocurrency trading is not offered in IRAs, per IBKR's FAQ (as of November 6, 2026)
Products in another currency need a currency trade first
IBKR Pro Fixed charges USD 0.005 per share, with a USD 1.00 minimum per order
Client service runs from Sunday 1 p.m. to Friday 7:30 p.m. ET
Wealthfront: Good for Hands-Off Investing at a Flat Fee
Wealthfront manages the IRA for an annual advisory fee of 0.25%, regardless of account size. The ETFs in its portfolios cost a weighted average of 0.06% to 0.08% (Classic) or 0.13% to 0.17% (Socially Responsible), and you can add or remove funds and change their weights.
The minimum is $500, rollovers included. Wealthfront supports Traditional, Roth and SEP IRAs, charges no fee for Roth conversions or for transferring out, and offers technical support by phone or email in business hours. It does not offer access to financial advisors or support inherited IRAs, per Wealthfront (as of November 6, 2026).
Flat 0.25% advisory fee at any balance
Customizable ETF portfolio
No fee for Roth conversions or for transferring out
$500 minimum to open
No access to financial advisors to discuss your portfolio, per Wealthfront (as of November 6, 2026)
Inherited IRAs not supported, per Wealthfront (as of November 6, 2026)
Betterment: Good for Automated Saving From $10
Betterment is one of the robo-advisors that build and run the portfolio for you. Pricing starts at $5 a month and switches to 0.25% a year once you set up $200 or more in monthly recurring deposits or reach $24,000 across your Betterment investing accounts. The minimum deposit is $10.
Inside an IRA you can also make self-directed stock and ETF trades with no commissions. If you hold an IRA and a taxable account, Betterment coordinates where your investments sit to help reduce taxes, and it pauses recurring deposits when you reach the IRS limit. Premium costs 0.65% a year, needs $100,000 and adds CFP professionals.
$10 minimum deposit
Commission-free self-directed stock and ETF trades in IRAs
Traditional, Roth, SEP and inherited IRAs
Free advisor help for rollovers of $20,000 or more
$5 a month below $24,000 unless you deposit $200 or more a month
Premium needs a $100,000 balance
$75 for each account transfer to another firm
SoFi Invest: Good for Commission-Free Trading From $5
A self-directed SoFi IRA has no opening or annual fee and needs $5 to start investing. Stock and ETF trades are commission-free, and options trading is available in self-directed IRAs with zero commissions (other fees may apply). An automated (robo) IRA costs 0.25% a year, with a $50 minimum.
SoFi matches 1% of IRA contributions made by ACH or by instant transfer from SoFi Bank, up to the IRS contribution limit, under an offer running since August 26, 2026 with no end date stated. SoFi can change or end it at any time, matched deposits must stay in the IRA for five years, and SEP IRAs are excluded. Our SoFi Invest review covers the rest.
$0 opening and annual fee on self-directed IRAs
$5 to start investing
Commission-free stock, ETF and options trades in self-directed IRAs
A complimentary 30-minute session with a SoFi Financial Planner
$100 to transfer the account out by ACAT
$25 inactivity fee per account for every 6 months without a login
A $100 IRA closing fee may apply when the balance drops below $100
Acorns: Good for One Flat Monthly Subscription
Acorns Later, the Acorns IRA, comes with every Acorns subscription: Bronze at $4 a month, Silver at $8 or Gold at $12. You can start with $5, and Acorns charges no commissions or asset-based fees on accounts under $1 million. Its age-based ETF portfolio adjusts automatically as you get older.
Contributions can run daily, weekly or monthly, or as a paycheck split from Acorns Checking. Rollovers and transfers come in from 401(k), 403(b), 457(b) and IRA accounts. When you move out, Acorns sells the investments and sends cash by wire or check. Our Acorns review has the details.
Starts at $5
IRA included in every subscription
Portfolio adjusts automatically as you age
No commissions or asset-based fees under $1 million
Flat fee of $4 to $12 a month, even on a small balance
Moving out means cash: Acorns sells the investments and does not transfer securities, per Acorns (as of November 6, 2026)
Rollovers and transfers in go through the support team
IRA Provider Comparison Chart
The chart sums up the key differences, with each provider's figures as of November 6, 2026. iTrustCapital is listed first as our Featured Partner (Sponsored). Fees change, so check the provider's fee schedule before you open an account.
Provider
Good for
Minimum to open
Stock and ETF commission
Advisory fee
IRA types
iTrustCapital (Featured Partner, Sponsored)
Crypto, precious metals such as gold and silver, and stocks and ETFs in a self-directed IRA
$1,000
$0
Self-directed; iTrustCapital does not provide investment advice
Traditional, Roth, SEP, Inherited; rollovers and Roth conversions
SoFi Invest
Commission-free stock, ETF and options trades from $5
$5
$0 commissions on stock and ETF trades in self-directed SoFi IRAs (options also commission-free; regulatory and other fees may apply)
Robo IRA: 0.25% a year, $50 minimum
Traditional, Roth, SEP; rollovers and Roth conversions
Acorns
A $5 start and one flat monthly subscription
$5
No commissions on accounts under $1 million (managed ETF portfolio)
Subscription: $4, $8 or $12 a month
Traditional, Roth, SEP; rollovers
Fidelity
No account fee, no opening minimum, zero-expense-ratio index funds
$0
$0 for online U.S. stock and ETF trades (options $0 plus contract fees)
Fidelity Go (managed): $0 under $25,000, 0.35% from $25,000
Traditional, Roth, SEP, Inherited; rollovers and Roth conversions
Charles Schwab
In-person help at 400+ branches and 24/7 service
$0
$0 for online stock and ETF trades (options $0.65 per contract)
Schwab Intelligent Portfolios (managed): no advisory fee, $5,000 minimum
Traditional, Roth, SEP, Inherited; rollovers and Roth conversions
Vanguard
Long-term investing in low-cost index funds, ETFs and Target Retirement Funds
No charge to open; each investment has its own minimum (Vanguard ETFs from $1)
$0 for online stock and ETF trades ($25 if broker-assisted, under $1 million in Vanguard assets)
Digital Advisor (managed): 0.20% (index) or 0.25% (active) gross, $100 minimum
Traditional, Roth, SEP, Inherited; rollovers and Roth conversions
Interactive Brokers
Global market access and low per-share pricing
$0
$0 for US exchange-listed stocks and ETFs with IBKR Lite; IBKR Pro Fixed USD 0.005 per share (USD 1.00 minimum per order)
Self-directed account
Traditional, Roth, SEP, SIMPLE, Inherited; rollovers and Roth conversions
Wealthfront
A hands-off, customizable ETF IRA at a flat fee
$500
Managed ETF portfolio; Wealthfront's software handles the trades
0.25%
Traditional, Roth, SEP; rollovers and Roth conversions
Betterment
An automated IRA from a $10 deposit
$10
$0 commissions on self-directed stock and ETF trades (self-directed investing is available in IRAs; Betterment's management fee does not apply to it)
0.25% ($5 a month below $24,000 without $200+ monthly deposits)
Traditional, Roth, SEP, Inherited; rollovers and Roth conversions
How to Choose the Best IRA Account
Picking an IRA account for your situation is less about finding one winner and more about matching a provider to your investing style and needs. Here are the factors that matter most when you compare IRA accounts.
Self-Directed vs. Managed Accounts
The biggest decision is whether you want to pick your own investments or have someone (or something) do it for you.
If you are comfortable picking your own stocks, ETFs and mutual funds, a self-directed IRA at Fidelity, Schwab, Vanguard, Interactive Brokers or SoFi Invest gives you full control, with $0 online stock and ETF trades (on IBKR Lite at Interactive Brokers).
If you prefer a hands-off approach, Wealthfront (0.25% a year), Betterment ($5 a month or 0.25% a year) and Acorns ($4 to $12 a month) build and manage an ETF portfolio for you.
There is no wrong answer here, and you can switch approaches later: several providers on this page offer both a self-directed and a managed IRA.
Fees and Expense Ratios
Fees are one of the biggest drags on long-term IRA growth. On a $100,000 IRA earning 7% a year for 20 years, a 1% annual fee leaves you about $66,000 less than no fee at all, while a 0.10% fee costs about $7,200. These figures assume the fee simply lowers the yearly return; they illustrate the math and are not a forecast.
Look at three layers of cost: trading commissions ($0 for online stock and ETF trades at most providers here), fund expense ratios (the ongoing annual cost of mutual funds and ETFs), and advisory fees (what you pay a robo-advisor or financial advisor). Then add account charges such as transfer-out fees, which range from $0 at Interactive Brokers and Wealthfront to $100 at Vanguard and SoFi Invest.
Investment Selection
Consider what you actually want to invest in. Brokerage IRAs give you thousands of stocks and ETFs, while managed IRAs invest you in a set ETF portfolio. The differences show up in mutual fund availability, access to bonds, international markets and alternative assets such as crypto.
If you want alternative assets in an IRA, you need a provider that supports them: iTrustCapital, our Featured Partner, offers 100+ cryptocurrencies and precious metals such as gold and silver, and Fidelity offers four coins in a linked Fidelity Crypto IRA.
Schwab lists 4,000+ no-transaction-fee mutual funds, Interactive Brokers reaches 175+ markets, and Vanguard, a natural fit for index funds, puts its average expense ratio at 0.07%. Robo-advisors like Wealthfront, Betterment and Acorns pick the investments for you from ETF portfolios.
Account Minimums
Most providers here let you start small: Fidelity, Schwab and Interactive Brokers need $0 to open, SoFi Invest and Acorns $5, and Betterment a $10 deposit. Wealthfront needs $500, and iTrustCapital has a $1,000 minimum initial contribution. Vanguard charges nothing to open an IRA, but each investment has its own minimum: Vanguard ETFs from $1 and Vanguard mutual funds from $3,000 to $50,000.
What Is an IRA?
An Individual Retirement Account (IRA) is a tax-advantaged investment account designed for long-term retirement savings. Unlike employer-sponsored 401(k) plans, anyone with earned income can open an IRA independently through a brokerage, bank, or robo-advisor.
IRAs offer two primary tax benefits depending on the type: either a tax deduction on contributions now (Traditional IRA) or tax-free withdrawals in retirement (Roth IRA). Both types allow your investments to grow tax-deferred, which means you do not pay taxes on dividends, interest, or capital gains as long as the money stays in the account.
Types of IRAs
There are several IRA types, each designed for different financial situations.
IRA Type
Tax Treatment
Good For
2026 Contribution Limit
Traditional IRA
Contributions may be tax-deductible; taxed on withdrawals
Those who want an upfront tax break today
$7,500 ($8,600 if 50+)
Roth IRA
After-tax contributions; tax-free qualified withdrawals in retirement
Those who expect higher taxes in retirement
$7,500 ($8,600 if 50+)
SEP IRA
Employer contributions only; taxed on withdrawals
Self-employed and small business owners
Up to 25% of pay, capped at $72,000
SIMPLE IRA
Employee + employer contributions; taxed on withdrawals
Small businesses, generally with 100 or fewer employees
$17,000 ($21,000 if 50+ in most plans)
Rollover IRA
Same as Traditional; holds funds moved from a 401(k)
People leaving a job or consolidating accounts
Rollovers don't count toward the annual limit
Traditional IRA vs. Roth IRA: Which Should You Choose?
The answer depends on your current and expected future tax situation.
Choose a Traditional IRA if you are in a high tax bracket now and expect to be in a lower bracket in retirement. Your contributions may be tax-deductible, reducing your taxable income today. Every provider on this page offers a Traditional IRA.
Choose a Roth IRA if you are in a lower tax bracket now and expect your income (and tax rate) to grow over time. Contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free. Every provider on this page also offers a Roth IRA, and as the original owner you don't have to take required minimum distributions (RMDs) at any age.
You can contribute to both types in the same year. The $7,500 limit ($8,600 if you are 50 or older) covers your total across all Traditional and Roth IRAs, so you can split it between them in any proportion.
IRA Rollover: Moving Your 401(k) to an IRA
When you leave a job, you can roll your 401(k) balance into a Rollover IRA. The IRA gives you the provider's range of investments instead of your plan's fund menu, so compare both, fees included, before you move.
A direct rollover, where the plan pays the IRA, avoids tax withholding and is the cleanest approach. If the plan pays you instead, it must withhold 20% for taxes, and you have 60 days to deposit the money into an IRA. To roll over the full amount, you'll need other funds to cover the 20%.
Schwab offers a dedicated rollover consultant for 401(k) rollovers, and Betterment offers free advisor help if you move $20,000 or more.
Robinhood also offers IRA accounts with a 1% match on eligible contributions to a self-directed IRA, or 3% with a paid Robinhood Gold subscription, which you must keep for a year after the first Gold match. The money that earned the match must stay in the account for five years (terms as of November 6, 2026). Matches like these have holding periods, so read the terms before you move money.
Here is what opening an IRA involves:
How to Open an IRA Account
Choose Your Provider and IRA Type
Pick a provider from our comparison above based on your investing style. Decide between Traditional and Roth based on your tax situation. If you are rolling over a 401(k), select Rollover IRA.
Gather Your Information
You will need your Social Security number, government-issued ID, employer information, and bank account details for funding.
Complete the Application
Fill out the online application on your chosen provider's website. Most applications ask about your investment experience, risk tolerance, and financial goals.
Fund Your Account
Link your bank account and set up an initial deposit or transfer. Consider setting up automatic monthly contributions to build your savings consistently.
Select Your Investments
For self-directed accounts, choose from stocks, ETFs, mutual funds, or target-date funds. For robo-advisors, answer a few risk-assessment questions and the platform builds your portfolio automatically.
IRA Investing Tips for 2026
A few practical strategies to get more from your IRA:
Max out your contributions early. Contributing $7,500 in January rather than December gives your money 11 extra months of potential growth. Over 30 years, this timing difference alone can add thousands to your balance.
Use target-date funds if you are unsure. These funds automatically adjust your stock-to-bond ratio as you approach retirement. Vanguard's Target Retirement Funds, for example, give you a complete, professionally managed mix in one fund.
Do not ignore the catch-up contribution. If you are 50 or older, the extra $1,100 per year (totaling $8,600) can make a meaningful difference. An extra $1,100 invested at the end of each year at a constant 7% grows to about $27,600 over 15 years.
Consider the backdoor Roth if you earn too much. High earners who exceed the Roth IRA income limits can still benefit from Roth savings through the backdoor strategy. Make a nondeductible Traditional IRA contribution and convert it to Roth.
Keep expense ratios low. Aim for index funds and ETFs with low expense ratios. Fidelity ZERO index funds such as FNILX have a 0% expense ratio, and Vanguard puts its average expense ratio at 0.07% (as of December 31, 2025).
Frequently Asked Questions
What is the difference between a Traditional and Roth IRA?
A Traditional IRA may give you a tax deduction on contributions now, and withdrawals in retirement are generally taxed as income. A Roth IRA uses after-tax contributions, but qualified withdrawals in retirement are tax-free. As the original owner of a Roth IRA, you don't have to take required minimum distributions at any age.
How much can I contribute to an IRA in 2026?
The IRA contribution limit for 2026 is $7,500, or $8,600 if you are 50 or older (including the $1,100 catch-up contribution). This limit applies to your total contributions across all Traditional and Roth IRAs combined.
Can I have multiple IRA accounts?
Yes, you can have multiple IRAs, including different types (Traditional and Roth). However, your total annual contributions across all your Traditional and Roth IRAs cannot exceed the 2026 limit of $7,500 ($8,600 if 50+). Some investors open accounts at different providers to access different investment options.
What happens if I withdraw money early from my IRA?
Before age 59 1/2, you generally owe a 10% additional tax on the taxable part of a Traditional IRA withdrawal, on top of regular income tax. A Roth IRA withdrawal of your regular contributions (not earnings) is not taxed. Exceptions to the 10% tax include a first-time home purchase (up to $10,000 over your lifetime), qualified higher education costs and unreimbursed medical expenses above 7.5% of AGI.
What is the 5-year rule for Roth IRAs?
Earnings come out of a Roth IRA tax-free only in a qualified distribution: one made after the 5-year period that starts with the first tax year you contributed to a Roth IRA, once you are 59 1/2 or older, disabled, a beneficiary after the owner's death, or buying a first home (up to $10,000). Each conversion also has its own 5-year period for the 10% additional tax.
Should I roll over my 401(k) to an IRA?
It depends on your plan. An IRA gives you the provider's range of investments, while a 401(k) offers its own fund menu, so compare the fees and choices of both. One reason to wait: if you leave your employer during or after the year you turn 55, 401(k) withdrawals avoid the 10% additional tax, an exception the IRS does not extend to IRAs.
Is $500,000 in an IRA good?
A $500,000 IRA balance is a solid foundation for retirement. Using the 4% withdrawal rule of thumb, it would generate about $20,000 a year in retirement income. Whether it is enough depends on your expected expenses, other income such as Social Security, other savings, and retirement lifestyle.
Can I hold crypto in an IRA?
Yes, if your IRA provider supports it. The IRS treats digital assets as property and requires IRA contributions in cash, so you buy crypto with money already in the IRA, not by moving in coins you own. In a crypto IRA, a custodian (a bank, federally insured credit union, savings and loan association or IRS-approved entity) holds the coins. Our crypto IRA guide covers the rules.
Start Building Your Retirement Savings
The most important step in IRA investing is getting started. Even small, regular contributions add up: $500 a month in a broad market index fund, earning a constant 7% a year compounded monthly, would grow to about $610,000 over 30 years. That is an illustration, not a forecast, and real returns vary.
Compare the IRA providers above and pick the one that fits how you invest. You can also explore our investment broker comparison tools for accounts outside an IRA. You can switch providers later through a direct transfer if your needs change; check the transfer-out fee first.
