What is the best place to open a Roth IRA account in June 2024?

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What is the best place to open a Roth IRA account in 2024? To help you make that decision, we’ve evaluated and ranked nine of the best Roth IRA account providers. While the voting was close, our choice as the best place to open a Roth IRA account in 2024 is Robinhood. That’s because it offers a combination of compelling benefits, starting with a generous matching IRA contribution you’ll want to take advantage of.

Eight best Roth IRA accounts

The table below summarizes our list of the nine best Roth IRA accounts in 2024. Detailed descriptions of each will follow the table.

Investment broker

Matching IRA contribution

Commission-free trading of stocks, options & ETFs

$0 to open, $1 to invest

Investment broker

Access to Certified Financial Planners

Commission-free trading of stocks and ETFs

$0 to open, $5 to invest

Investment broker

Investment selection

Commission-free trading of stocks, ETFs & options (+ $0.65 per contract)

Investment broker

Customer service

Commission-free trading of stocks, ETFs & options (+ $0.65 per contract)

Investment broker

Frequent trading

Commission-free trading of stocks, ETFs & options (+ $0.55 per contract)

Investment broker

Options trading

Commission-free trading of stocks, mutual funds, ETFs & options (+ $0.65 per contract)

Investment broker

Investing with online banking

Commission-free trading of stocks, ETFs & options (+ $0.50 per contract)

Robo-advisor

Hands-off robo-advisor

$4 per month or 0.25% annual advisory fee for standard investing/IRA account; 0.40% for Premium; 1% annual fee for Crypto portfolio

Robinhood: Best for matching IRA contribution

Robinhood IRA

Investments offered

Individual stocks, exchange-traded funds (ETFs), options and cryptocurrencies.

High-interest savings

5.00% APY on balances up to $2.25 million through Robinhood Gold program.

Sign-up bonus

$300 – $30,000 when you transfer $10,000 to $1 million+.

You probably know about employer matching contributions on 401(k) plans, but have you ever heard of a matching contribution on an IRA? Probably not because IRAs don’t involve employers. But they do involve brokers, and Robinhood is one of the few offering a matching contribution on your personal IRA contribution. That’s why Robinhood takes the top spot on our list of the best places to open a Roth IRA account.

It will provide a matching contribution of 1% on your Roth IRA contribution or up to 3% if you sign up for a Robinhood Gold membership at a monthly fee of $6.99 or $75 annually.

Robinhood offers commission-free trading in stocks, options and ETFs. Another factor distinguishing Robinhood is that it also offers trading in cryptocurrencies, which is also commission-free. If you sign up for a Gold membership, you can earn 5% APY on cash balances up to $2.25 million.

SoFi Invest: Best for access to certified financial planners (CFPs)

SoFi Invest

Investments offered

Individual stocks, options, mutual funds and ETFs.

High-interest savings

4.60% APY.

Sign-up bonus

Up to $1,000 in stock when you fund a new account.

SoFi Invest stands out as a top place to open a Roth IRA account because it provides complementary financial advice from a certified financial planner. That’s a professional who can help you make important long-term financial decisions, though they will not provide specific investment advice. SoFi also offers an automated investment service (roboadvisor) if you prefer to have some or all of your Roth IRA account managed for you.

SoFi Invest also used to provide a 1% match for IRAs that was boosted to 2% between January 1st and April 15th 2024. Though the program ended on tax day 2024, and there is no indication if the program will be reinstated in the future, it is possible they will run the promotion again.

Charles Schwab: Best for wide investment selection

Charles Schwab

Investments offered

Individual stocks, mutual funds, ETFs, options, futures, fixed-income investments and annuities.

High-interest savings

0.48% APY on uninvested cash, or up to 5.33% on Schwab Money Market Funds.

Sign-up bonus

N/A

As one of the largest investment brokerages in the world, Charles Schwab offers something close to an unlimited selection of investments. That includes both U.S. and foreign stocks, mutual funds, ETFs, futures, annuities and a very wide selection of fixed-income securities. Whether you are a long-term investor or trader, the investment platform is one of the best in the industry. Not only can you make trades in seconds, but you can also access Schwab’s extensive investment tools.

If you prefer a managed investment option, Schwab offers their Intelligent Portfolios account. With a minimum of $5,000 invested, you can take advantage of automated investment management with no annual advisory fee.

Fidelity: Best for customer service

Fidelity Investments

Investments offered

Individual stocks, mutual funds, ETFs, options, futures, fixed-income investments and annuities.

High-interest savings

4.96% APY on Fidelity Government Money Fund.[](https://www.fidelity.com/go/manage-cash-rising-costs)

Sign-up bonus

N/A

As another of the largest investment brokerages in the world, Fidelity leads the pack in customer service. Not only do they provide live phone support on a 24/7 basis, but they also operate more than 200 branch locations around the country if you prefer face-to-face contact. Much like Schwab, Fidelity is a fully diversified investment broker, charging low or no fees on a large selection of available investments.

If you prefer a managed option, you can take advantage of the Fidelity robo advisor, Fidelity Go. You can open an account with no funds and begin investing with as little as $10. There is an annual advisory fee of 0.35%, but the first $25,000 is managed free.

Webull: Best for frequent trading

Webull

Investments offered

Individual stocks, ETFs, options, index options and futures.

High-interest savings

5.00% APY.

Sign-up bonus

Up to 75 fractional shares, worth up to $3,000, after opening a new account with $500 or more.[ ](https://www.webull.com/activity)

Webull is an investment app designed for frequent traders. For that reason, they don’t offer certain common investment types, such as bonds and other fixed-income securities. It’s designed for trading stocks, options, futures and ETFs on the go.

Webull also offers a paper trading feature to help you test investment strategies before using your own money. Meanwhile, you can share investing ideas with other traders in the Webull community. The platform also upgraded its investment tools, including advanced charting tools, Level 2 and NBBO Quotes, more than 50 indicators and over 60 technical signals.

E*TRADE: Best for options trading

E-Trade

Investments offered

Individual stocks, mutual funds, ETFs, options, futures and fixed-income investments.

High-interest savings

0.01% APY to $499,999; 0.05% APY to $999,999; 0.15% APY on $1 million+

Sign-up bonus

$100 – $4,000 after opening a new account with between $50 and $1.5 million+.[](https://us.etrade.com/what-we-offer/how-it-works/promo)

E*TRADE isn’t among the largest investment brokers, but it’s a good choice for advanced traders, especially those who want to invest in options. It provides a full suite of options tools, including risk/reward probabilities, customizable option chains, earnings move analyzer, preset scans, spectral analysis, Strategy Seek and Risk Slide. E*TRADE also offers reduced per-contract fees on options. When you make more than 30 trades per quarter, the per-contract fee falls from $0.65 to $0.50.

That said, your retirement account isn’t necessarily the place you want to do a lot of active trading. E*TRADE has more than 6,000 mutual funds. If you prefer a managed option, you can take advantage of E*TRADE’s Core Portfolios. The minimum initial investment is $500, with an annual advisory fee of 0.30% or $1.50 annually. If you prefer to bank where you invest, you can take advantage of checking and savings accounts offered through Morgan Stanley Private Bank.

Ally Invest: Best for investing with online banking

Ally Invest

Investments offered

Individual stocks, mutual funds, ETFs, options and fixed-income investments.

High-interest savings

4.25% APY.

Sign-up bonus

$75 to cover transfer fees when you transfer $2,500 or more.

Ally Invest offers everything you need to open a self-directed Roth IRA account. Like other brokers on this list, they offer commission-free trades on stocks, options and ETFs, including a per-contract fee of $0.50 on options trades. It will also give you access to more than 17,000 no-load mutual funds, also commission-free. You can choose between four different Robo Portfolios if you want to take advantage of automated investing. These portfolios require a minimum investment of $100, at an annual advisory fee ranging from zero to 0.30%.

But perhaps the real advantage of Ally Invest is its tie-in with Ally Bank. You can take advantage of checking, savings, money markets and certificates of deposit for savings purposes, but also credit cards, personal loans, auto loans and home mortgages if you need financing.

Betterment: Best for hands-off robo-advisor

Betterment Invest

Investments offered

ETFs invested in a mix of U.S. and foreign stocks and bonds; cryptocurrencies and cash.

High-interest savings

5.00% variable APY.

Sign-up bonus

N/A

If you’re not interested in self-directed investing, you may want to choose a low-cost roboadvisor to manage your money. Betterment is one of the original robo-advisors, and they’ve steadily improved their service over the years. That includes moving from basic automated investment management to a high-yield cash option and multiple portfolio options. Those portfolio options include specializations in technology, undervalued stocks, sustainable investing and bonds. Betterment has also added crypto portfolio options including a portfolio with 70% allocation to Bitcoin and 30% to Ethereum.

The Premium plan requires a minimum investment of $100,000 and comes with an annual fee of 0.40%. That plan will give you access to certified financial planners to help you build and manage your investments.

Betterment now offers a no-fee checking account that comes with a cash-back Visa debit card and unlimited ATM fee reimbursement.

How we found the best online Roth IRA brokerages of 2024

We based our ranking of the nine best places to open a Roth IRA account in 2024 of the following criteria:

  • What each provider is best for.
  • Fee structure.
  • Minimum initial investment required.
  • Selection of investments offered.
  • High-interest savings option.
  • The availability of a sign-up bonus.
  • Availability of customer service.
  • Availability of a managed portfolio option (with self-directed brokers).

Each of the above criteria was given equal weight with the exception of the first: what each provider is best for. Since the offerings are relatively consistent, we gave the greatest weight to specialization. In the case of Robinhood, the availability of a 3% IRA matching contribution was decisive in our decision to make it the top choice.

How to select the best Roth IRA brokerage account for you

To select the best Roth IRA brokerage account for you, you should follow the same pattern we did in choosing this list.

  • Decide what each provider is best for. Determine which benefits are most important to you.
  • Know the fee structure. This is not just about choosing the broker with the lowest fees, but the one with the lowest fees for the type of investing you engage in.
  • Understand the minimum initial investment required. This factor will be most important if you are a new investor, but our selections each require essentially no initial minimum.
  • Review the selection of investments offered. Once again, these should match the type of investing you are most likely to engage in.
  • See if there is a high-interest savings option. Your place to park your cash in between investments; the rate of return on that cash will affect your overall portfolio returns.
  • Check the availability of a sign-up bonus. A generous sign-up bonus can be a real boost to your Roth IRA account, even though it is a temporary benefit. Just be sure to read the fine print to learn what requirements you must meet.
  • Look for customer service availability. This factor will be more important in cases of self-directed investing. Customer service hours should extend beyond the trading day.
  • If you want one, check the availability of a managed portfolio option (self-directed brokers). Even if you are a committed self-directed investor, there may come a time when you want some help.

Roth IRA pros and cons

Pros:

  • Tax-free withdrawals once you reach age 59 ½ and have been in a Roth plan for at least five years.
  • Contributions can be withdrawn at any time, tax-free and penalty-free.
  • Tax deferral of investment earnings.
  • No required minimum distributions (RMDs) after retirement.

Cons:

  • Contributions are not tax deductible.
  • Low contribution limit – $7,000 per year or $8,000 if you are 50 or older (for 2024).
  • Cannot make contributions if your income exceeds $161,000 if you’re single or $240,000 for married filing jointly (for 2024).
  • Investment earnings withdrawn before 59 ½ are subject to both ordinary income tax and a 10% early withdrawal penalty.

The AP Buyline roundup: Should you open a Roth IRA?

Even if you are covered by another retirement plan, a Roth IRA is an excellent tax diversification strategy. It will provide a source of tax-free income in retirement that can be especially important during retirement years when your income may be unusually high. In addition, since required minimum distributions are not a factor, you can allow a Roth IRA to grow for the rest of your life. That will enable you to leave a large inheritance for your heirs.

Frequently asked questions (FAQs)

How will my Roth IRA grow?

Through a combination of regular contributions and investment earnings. Since an IRA is a long-term account, you should favor equity-type investments in your plan, such as those offered by the brokers we’ve presented in this guide.

How easily can I access my money?

One of the advantages of a Roth IRA, as retirement plans go, is that you can withdraw your contributions from the plan without incurring either ordinary income tax or the 10% early withdrawal penalty. This is because no tax benefit is received when making contributions, therefore no tax will be required when making withdrawals. However, early withdrawal of accumulated earnings in your plan will be subject to ordinary income tax and the penalty.

What is the best kind of Roth IRA?

There’s no one answer to this question. The best kind of Roth IRA is the best plan for you. For example, if you feel comfortable engaging in self-directed investing, the best plan may be a self-directed brokerage account. If you’re not comfortable choosing and managing your own investments, you should select a managed plan, like a robo-advisor.

What is the 5-year rule for a Roth IRA?

The five-year rule for a Roth IRA is that you cannot withdraw earnings tax-free from the plan until at least five years have passed since your first contribution to the plan.

For example, let’s say you begin contributing to a Roth IRA at age 60. If you begin taking withdrawals at 63 that include accumulated investment earnings, those earnings will be subject to ordinary income tax. (The usual penalty will not apply since you are over 59½.) But if you wait until you turn 65, you will be able to make Roth IRA withdrawals tax- and penalty-free.

How much will a Roth IRA grow in 20 years?

That all depends on the expected annual rate of return. If you expect to earn 5% per year and contribute $7,000 each year, your Roth IRA will grow to $231,464 in 20 years. With an expected rate of return of 7% and contributions of $7,000 per year, your Roth will grow to $286,972.

What are the tax implications?

If you begin taking distributions from your Roth IRA after reaching age 59½ and have participated in a Roth plan for at least five years, you can begin taking tax-free withdrawals.

Be aware that your contributions to a Roth IRA are not tax-deductible, and any withdrawals of accumulated investment earnings taken before age 59½ will be subject to ordinary income tax and a 10% early withdrawal penalty.

Can I contribute to a Roth IRA if I have a 401K or traditional IRA account?

You can. Participation in a Roth IRA is determined by your income. As long as you’re within the income limits, you can contribute to a Roth IRA even if you’re covered by an employer plan.

You cannot make a contribution to a Roth IRA for 2024 if you are single and earn more than $161,000 or if you are married filing jointly and earn more than $240,000.

You can also have a traditional IRA, however; but your total contributions to both plans cannot exceed the limit for a single plan. For example, for 2023, if you put $3,000 into a traditional IRA, you’ll be limited to not more than $3,500 for a Roth IRA contribution–for a total of $6,500.