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Best IRAs 2024 Compare Retirement Plans

Written by:  Joe Chappius
|
Editor:  Sam Onelia
Last updated: September 17, 2024

We compare the best IRAs in 2024. Find an IRA retirement plan that works for you. With Financer.com you can:

  • Compare the best IRAs
  • Learn more about investments
  • Compare IRA rates and benefits

Are you ready to take control of your financial future? Choosing the right Individual Retirement Account (IRA) provider is a crucial step towards securing a comfortable retirement.

Based on our research and analysis, here are the top IRA providers for 2024:

Quick Answer: Best IRA Providers 2024

  • Best Overall: Fidelity Investments – Offers a wide range of investment options, low fees, and excellent educational resources.
  • Best for Low Costs: Vanguard – Known for its low-cost index funds and ETFs, ideal for cost-conscious investors.
  • Best for Beginners: Charles Schwab – User-friendly platform with extensive educational materials and customer support.
  • Best for Active Traders: Interactive Brokers – Advanced trading platform with a vast selection of investment options.
  • Best Robo-Advisor: Wealthfront – Offers automated investing with low management fees and sophisticated goal-based planning.
  • Best for Hands-Off Investors: Betterment – Provides a fully automated investing experience with comprehensive financial planning tools.

The Power of Compound Interest

Consider this: If you consistently contribute $6,000 annually to your IRA, assuming an average annual stock market return of 8%, you could potentially accumulate more than $475,000 after 25 years.

Even with a more conservative 6% return, you’d still have over $345,000. This illustrates the tremendous potential of long-term IRA investing.

Top IRA Providers of 2024

After extensive research and analysis, we’ve identified the following companies as the best IRA providers for 2024:

    Best Overall: Fidelity Investments

  • Extensive investment selection

  • No minimum account balances

  • Zero fees for U.S.-listed stocks, ETFs, and options

  • Comprehensive educational resources

    Best for Hands-On Investors: Charles Schwab

  • Wide range of investment options

  • Thousands of no-transaction-fee mutual funds

  • Robust trading platform

  • Excellent retirement planning tools

    Best for Low-Cost Mutual Funds: Vanguard

  • Renowned for low-cost index funds

  • Offers robo-advisor services

  • Strong reputation in the investment community

    Best for Advanced DIY Investors: Interactive Brokers

  • Extensive mutual fund selection

  • Advanced trading tools

  • User-friendly interface suitable for various skill levels

    Best for Hands-Off Investors: Wealthfront

  • Top-rated robo-advisor

  • Low management fees

  • Professionally managed portfolios

    Best for Flat-Fee Structure: Betterment

  • Transparent flat-fee pricing

  • No minimum balance requirement

  • Automated investment management

Comparison Chart: Top IRA Providers of 2024

To help you make an informed decision, we’ve compiled a detailed comparison of the top IRA providers.

This chart highlights key features, pros, and cons of each provider to assist you in choosing the best option for your retirement savings goals.

ProviderBest ForProsConsFeesMinimum Investment
Fidelity InvestmentsActive traders and those seeking wide investment options– Wide investment selection
– Low fees
– Comprehensive tools
– Excellent customer service
– Platform may be complex for beginners$0 for stock/ETF trades; $0 for many mutual funds$0
Charles SchwabInvestors wanting active or passive management with educational resources– User-friendly platform
– No transaction fees on many funds
– Robo-advisor options
– Extensive educational resources
– Some transactions may incur fees$0 for stock/ETF trades; $0 for Schwab mutual funds and select others$0
VanguardExperienced investors seeking low-cost funds and automated management– Low-cost mutual funds
– Robo-advisor available
– Wide selection of investments
– Some funds have investment minimums$0 for stock/ETF trades; $0 for Vanguard mutual funds$0 for many funds; some require $1,000+
Interactive BrokersAdvanced DIY investors– Ideal for active traders
– Large mutual fund selection
– User-friendly platform
– May be too complex for beginners$0 for stock/ETF trades; fees vary for mutual funds$0
WealthfrontInvestors wanting professionally managed portfolios at low cost– Low management fee
– Automated rebalancing
– Sophisticated goal-based planner
– Additional ETF fees0.25% annual management fee + ETF fees$500
BettermentHands-off investors seeking low fees and comprehensive planning tools– Robo-advisor with ETF focus
– Low fees
– Advanced financial planning tools
– Additional ETF fees0.25% annual fee (Digital); 0.40% (Premium) + ETF fees$0 (Digital); $100,000 (Premium)

How to Choose the Best IRA Provider

Selecting the right IRA provider involves considering several factors:

    Factors to Consider When Choosing an IRA Provider

  • Investment Options: Consider the range of available investments and how they align with your strategy.

  • Fees: Look at both management fees and transaction costs, as these can significantly impact your returns over time.

  • User Experience: Choose a platform that matches your level of investing expertise and desired level of involvement.

  • Educational Resources: If you’re new to investing, prioritize providers with robust educational materials.

  • Account Minimums: Ensure you can meet the minimum investment requirements, especially for specific funds.

  • Additional Services: Consider value-added features like financial planning tools or robo-advisor options.

Remember, the best IRA provider for you depends on your individual financial situation, investment goals, and preferences.

While this comparison provides a overview, it’s always wise to conduct your own research and possibly consult with a financial advisor before making a decision.

Expert Tip

Consider opening accounts with multiple providers if you want to take advantage of different strengths. For example, you might use Vanguard for their low-cost index funds and Fidelity for active trading.

Just remember to keep track of your total contributions across all accounts to ensure you don’t exceed the annual IRA contribution limits.

What Is an IRA?

An Individual Retirement Account (IRA) is a powerful financial tool designed to help you save for retirement, often with significant tax advantages.

Unlike employer-sponsored 401(k) plans, IRAs typically offer a wider range of investment options, giving you more control over your retirement savings strategy.

Key IRA Facts for 2024

  • Contribution Limit: $6,500 per year (or $7,500 if you’re 50 or older)
  • Types: Traditional (tax-deductible contributions) and Roth (tax-free withdrawals in retirement)
  • Eligibility: Anyone with earned income can contribute (Roth IRAs have income limits)
  • Investment Options: Stocks, bonds, mutual funds, ETFs, and more

How is an IRA Different from a 401(k)?

While both IRAs and 401(k)s are retirement savings vehicles, they have key differences:

  • IRAs are opened by individuals; 401(k)s are offered by employers
  • IRAs generally offer more investment choices than 401(k)s
  • 401(k)s often include employer matching contributions
  • 401(k)s have higher contribution limits than IRAs

Can I Have Both a Roth and Traditional IRA?

Yes, you can contribute to both a Roth and Traditional IRA in the same year. However, your total contributions to all IRAs cannot exceed the annual limit ($6,500 for 2024, or $7,500 if you’re 50 or older).

Pro Tip:

Consider diversifying your retirement savings by having both types of IRAs. This strategy, known as “tax diversification,” can provide flexibility in managing your tax burden during retirement.

Types of IRAs: Choosing the Right One for You

Understanding the different types of IRAs is crucial in selecting the one that best fits your financial situation:

IRA TypeBest ForKey Features
Traditional IRAHigher tax bracket individuals, those without employer-sponsored plansTax-deductible contributions, tax-deferred growth
Roth IRAThose expecting higher tax brackets in retirementAfter-tax contributions, tax-free withdrawals in retirement
SEP IRASelf-employed individuals, small business ownersHigher contribution limits, employer-funded
SIMPLE IRASmall businesses (up to 100 employees)Easy setup, mandatory employer contributions

    Key Factors in Choosing an IRA Provider

  • Fees: Look for providers with low management fees and no hidden costs

  • Investment Options: Ensure a diverse range of investment choices

  • User Experience: Consider the ease of use of the platform and mobile app

  • Educational Resources: Valuable for both novice and experienced investors

  • Customer Support: Responsive and knowledgeable support can be crucial

  • Account Minimums: Some providers have no minimums, making it easier to start

The Benefits of Opening an IRA

How to Open an IRA Account

Steps to Open Your IRA

Opening an IRA is a straightforward process that can typically be completed online in about 15 minutes:

Steps

1. Choose Your Provider
2. Gather Necessary Information
3. Select Your IRA Type
4. Fund Your Account
5. Choose Your Investments
Step 1

Choose Your Provider

Select from our list of top IRA providers based on your needs

Step 2

Gather Necessary Information

You’ll need your Social Security number, driver’s license, and employment details

Step 3

Select Your IRA Type

Decide between Traditional, Roth, or other IRA types

Step 4

Fund Your Account

Set up an initial deposit or transfer from an existing account

Step 5

Choose Your Investments

Select from the available investment options or opt for a managed portfolio

Frequently Asked Questions About IRAs

What’s the difference between a Traditional and Roth IRA?

Traditional IRAs offer tax-deductible contributions and tax-deferred growth, with taxes paid on withdrawals. Roth IRAs use after-tax dollars for contributions, but offer tax-free withdrawals in retirement.

How much can I contribute to an IRA?

For 2024, the maximum contribution is $6,500 per year, or $7,500 if you’re 50 or older.

Can I have multiple IRAs?

Yes, you can have multiple IRAs, even of different types. However, your total contributions across all IRAs cannot exceed the annual limit.

What if I need to withdraw money early from my IRA?

Early withdrawals (before age 59½) from a Traditional IRA may incur a 10% penalty plus taxes. Roth IRAs allow penalty-free withdrawal of contributions (but not earnings) at any time.

Start Securing Your Retirement Today

Investing in an IRA is a crucial step towards a secure financial future. By choosing one of the top IRA providers we’ve highlighted, you’re setting yourself up for long-term success. Remember, the sooner you start, the more you can benefit from compound growth.

Take Action Now

Don’t wait to start planning for your retirement. Compare the best IRA providers, choose the one that fits your needs, and open your account today. Your future self will thank you!

Our Commitment to Transparency
At Financer.com, we're committed to helping you with your finances. All our content abides by our Editorial Guidelines. We are open about how we review products and services in our Review Process and how we make money in our Advertiser Disclosure.
Author Joe Chappius

Joe is a seasoned financial adviser with over a decade in the industry, and Head of the US Market at financer.com. Throughout his career, he's directly assisted families, high-income individuals, and business owners with their financial needs. Joe draws on his wealth of client-facing experience to author insightful and high-quality financial content.

Editor Sam Onelia
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Got Questions? Get the Answers Here

How many IRAs can you have?
There is no limit to how many IRAs you can have. However, all the contributions of your IRAs can't exceed $6,000 in 2021 if you are younger than 50 years, or $7,000 if you are older than 50.
What is the best IRA plan?
The best IRA plan depends on your unique needs and this is why comparing IRA plans is so important. With so many IRA retirement plans available, you should compare the rates, account minimums, and other benefits before choosing the best IRA for your needs.
How much can you contribute to a Roth IRA?
Contributions to Roth IRAs are the same as traditional IRAs. For 2021, this is $6,000 annually or $7,000 for people over 50 years of age.
When can I withdraw from my IRA?
You can make withdrawals from your IRA at any time. However, your withdrawal will be included in your taxable income and may be subject to a 10% additional tax. At age 60, you can withdraw the entire balance tax-free providing that the IRA has been open for at least five years or more.
How much tax will I pay when withdrawing from my IRA?
When you withdraw from your IRA and you are under 60 years old, you will pay a 10% tax penalty, in addition to your regular income taxes.
Which bank has the best IRA?

Banks are not necessarily a better option than a robo-advisor or investment broker as you want to use the power of the stock market for long-term investments. With bank IRAs you'll have access to savings products like CDs (certificates of deposits). 

These products guarantee a return rate as long as you leave your money in them for a specific time. However, stock markets typically offer returns of around 8% to 10% a year, compared to CDs offering around 3%.

The stock market does come with risk but in general, investors who are in it for the long run generally enjoy large returns on their initial investments. 

However, if you want to go with a bank IRA, choose one that offers the best IRA CD rates so you can get the best return. Good options here include Discover and Ally Bank.

Can I lose money with an IRA?

Although very unlikely, it's possible for a retirement IRA account to lose value over time. But this is much more likely to happen if you invest money in single company stock.

To help prevent this, it's important that you diversify your investments where possible. Invest in more than one company - different industries, locations, and sizes - and choose both bonds and stocks.

This way, when one part of your investment doesn't perform, the rest can help keep your overall portfolio on track.

How quickly can I access my money?

Since an IRA is a retirement account, the money is meant to stay there until you are 59 1/2 years old. However, if you want to withdraw before then, you may be hit with a 10% tax penalty. In contrast, with a Roth IRA, you can withdraw at any time as you've already paid taxes on it.

Why is it called 'investing' in an IRA?

Unlike normal savings accounts, IRA plans don't pay out a specific return or interest rate. When you put money in your IRA, you have to choose an investment otherwise the money will simply be sitting as cash, and this is not ideal for a goal like retirement. 

Most IRA companies offer a wide range of choices for investments and this can include bonds, stocks, or mutual funds. If you are not familiar with the differences or not sure what to choose, opt for a r that can handle your investments on your behalf, for a minimal fee.

Can I open an IRA online?

Yes. You can open an IRA online with any robo-advisor or broker (compare our recommendations above) and it only takes about 15 minutes. You'll need to provide some basic information such as your name, Social Security number, birth date, and mailing address. 

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