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Best Roth IRA Accounts for December 2024

Review Updated
Matt Frankel, CFP®
Author: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for Motley Fool Money and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column for the Motley Fool ("Ask a Fool") that is syndicated in USA Today, and his work with Motley Fool Money has also been syndicated to MSN and Yahoo! Finance. He has been regularly featured on Fox Business and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

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| 2 others [ + ]
Steven Porrello
Reviewer: Steven Porrello
Steven Porrello
Steven Porrello
Writer

Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Nathan Alderman
Fact Checked: Nathan Alderman
Nathan Alderman
Nathan Alderman
Fact checker

Nathan Alderman has been a full-time Motley Fool employee since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

Roth IRAs are retirement accounts that can help you grow money tax free. But just because every Roth IRA follows the same tax rules and structure doesn't mean every IRA provider will offer you the same value.

We've broken down our best Roth IRA accounts into two categories: Best Roth IRAs for Self-Directed Investing and Best Roth IRAs for Hands-Off Investing. Self-directed IRAs are controlled by you -- you buy and sell your own investments on your own timeline.

Our hands-off Roth IRA accounts are robo-advisors. These platforms will help you assess your risk tolerance and determine your investment time horizon, and then it manages your portfolio over time to maximize return potential. Depending on your investment goals and individual preferences, either could be a great choice.

  • Our team of experts assessed 45+ trading platforms
  • We evaluate all brokerage accounts across the same 4 key criteria: user experience, cost efficiency, product variety, and support and security
  • Our brokerage ratings are never influenced by our advertising partners
  • We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased

There are a lot of options to compare, even on this page. It can be overwhelming! If you're looking for a place to start, here are some Roth IRA accounts our experts recommend and why they like them:

Our 10 Best Roth IRA Accounts

Broker/Advisor Best For Commissions Learn More
Award Icon 2025 Award Winner
Robinhood Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

Easy-to-use mobile platform

 Commission:

$0 for stocks, ETFs, and options; up to $5 monthly for Robinhood Gold
Read Review
SoFi Active Investing Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

All-in-one financial app

 Commission:

$0 for stocks,¹ $0 for options contracts⁴
Learn More for SoFi Active Investing

On SoFi Active Investing's Secure Website.

J.P. Morgan Self-Directed Investing Offer Image
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
= Poor
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

Avoiding fees

 Commission:

$0 per trade
Learn More for J.P. Morgan Self-Directed Investing

On J.P. Morgan Self-Directed Investing's Secure Website.

Award Icon 2025 Award Winner
E*TRADE Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

Strong mobile platform

 Commission:

Commission-free; other fees apply
Learn More for E*TRADE

On E*TRADE's Secure Website.

Fidelity Offer Image
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
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Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
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Best For:

Full-featured broker

 Commission:

No account fees to open a Fidelity retail IRA
Read Review
Ally Invest Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

Great financial app with low fees

 Commission:

$0 stock and ETF trades
Read Review
Award Icon 2025 Award Winner
Vanguard Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

Mutual fund and ETF selection

 Commission:

$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)
Read Review
Charles Schwab Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

Retirement investors

 Commission:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
Read Review
Wealthfront Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

Automated investing

 Commission:

$0 per trade, management fee 0.25%
Read Review
Betterment Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best For:

Low-cost passive investing

 Commission:

$0 per trade, management fee of $4 per month or 0.25% per year
Read Review
Editor's Note: TD Ameritrade is transitioning to Charles Schwab

TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've removed TD Ameritrade from our best-of lists to align with this development. Here at Motley Fool Money, you can trust that we're constantly evaluating our top broker picks to bring you current recommendations.

Reviews of the best Roth IRA accounts for self-directed investing

For an easy-to-use mobile platform: Robinhood

Ratings Methodology
Award Icon 2025 Award Winner
Robinhood

Robinhood

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

With no commission fees, access to trade fractional shares, and many investment types, Robinhood's high-quality app trading platform is best suited for beginner investors wanting a solid place to invest on the go.

Fees:

$0 for stocks, ETFs, and options; up to $5 monthly for Robinhood Gold

Account Minimum:

$0

Read Review

Pros

  • Great app
  • Industry-best IRA matching
  • Fractional share investing

Cons

  • No mutual funds
  • No bonds or fixed income
  • Membership needed for best features

Why Robinhood made the list: Robinhood pioneered the zero-commission stock trading business, and is still the low-fee leader. Its retirement accounts use the same app-based platform that its trading customers love, and it provides an extremely user-friendly way to start saving for retirement.

Read our full Robinhood review

For an all-in-one financial app: SoFi Active Investing

SoFi Active Investing
Learn More for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Ratings Methodology
SoFi Active Investing

SoFi Active Investing

Learn More

Double arrow

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

SoFi stands out with a simple IRA setup process and low fees, in addition to a wealth of other products at your fingertips, all accessible in the same app.

Fees:

$0 for stocks,¹ $0 for options contracts⁴

Account Minimum:

$0

Special Offer Circle with letter I in it. For new accounts: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%.

Get up to $1,000 in stock when you fund a new Active Invest account.⁷

Learn More for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Pros

  • Great all-in-one app
  • IRA match
  • Offers mutual funds

Cons

  • Light on tools and features
  • No fixed income

Why SoFi Active Investing made the list: SoFi Active Investing is a great combination of an easy-to-use app based investment platform and some of the features you might expect from larger, more established firms. For example, SoFi is one of the few app-based platforms to offer mutual fund investing, and it also offers several financial products in one user-friendly app.

Read our full SoFi Active Investing review

For avoiding fees: J.P. Morgan Self-Directed Investing

J.P. Morgan Self-Directed Investing
Learn More for J.P. Morgan Self-Directed Investing

On J.P. Morgan Self-Directed Investing's Secure Website.

Ratings Methodology
J.P. Morgan Self-Directed Investing

J.P. Morgan Self-Directed Investing

Learn More

Double arrow

Our Rating:

Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
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= Poor
Bottom Line

With no minimum deposit requirements to open an account, and no mutual fund commissions whatsoever, J.P. Morgan Self-Directed could be a great home for your Roth IRA, especially if mutual funds are a big part of your strategy.

Fees:

$0 per trade

Account Minimum:

$0

Special Offer

Earn a bonus up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account (retirement or general) with qualifying new money by 01/23/2025.

Learn More for J.P. Morgan Self-Directed Investing

On J.P. Morgan Self-Directed Investing's Secure Website.

Pros

  • Great app
  • Mutual funds available
  • Stock research access

Cons

  • Light on features
  • No fractional shares

Why J.P. Morgan Self-Directed Investing made the list: J.P. Morgan Self-Directed Investing is the retail brokerage platform offered by JPMorgan Chase. It has a fantastic investing app, and integrates seamlessly with other Chase financial accounts. It is one of the lowest-cost investment platforms in the market, especially for mutual fund investors.

Read our full J.P. Morgan Self-Directed Investing review

For strong mobile platform: E*TRADE

E*TRADE
Learn More for E*TRADE

On E*TRADE's Secure Website.

Ratings Methodology
Award Icon 2025 Award Winner
E*TRADE

E*TRADE

Learn More

Double arrow

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

E*TRADE is a strong option for IRAs with hundreds of commission-free ETFs and over 4,000 no-transaction-fee mutual funds. Additionally, there are no account minimums for Roth IRA accounts.

Fees:

Commission-free; other fees apply

Account Minimum:

$0

Learn More for E*TRADE

On E*TRADE's Secure Website.

Pros

  • Feature-packed platforms
  • Great customer support
  • Lots of investment choices

Cons

  • Not as easy to use as others

Why E*TRADE made the list: E*TRADE is one of the oldest online brokers, and it remains one of the best in the business. It has several different trading interfaces, extensive educational resources, lots of research available, and many other features.

Read our full E*TRADE review
Ratings Methodology
Fidelity

Fidelity

Our Rating:

Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

We rate Fidelity as one of the best Roth IRA accounts with pretty much every feature you'd need: an intuitive platform and tools, a strong selection of funds and ETFs, excellent customer service, and no account fees or account minimums.

Fees:

No account fees to open a Fidelity retail IRA

Account Minimum:

$0

Read Review

Pros

  • Great for mutual funds
  • Strong investment app
  • Fractional share investing

Cons

  • Robo-advisor fees are high

Why Fidelity made the list: Fidelity is one of the largest and oldest brokers in the U.S., and offers a ton of educational resources, research tools, and more. It also offers a surprisingly user-friendly investing interface for an older and "traditional" brokerage firm.

Read our full Fidelity review

For a great financial app with low fees: Ally Invest

Ratings Methodology
Ally Invest

Ally Invest

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Low fees, no account minimums, and over 100 commission-free ETFs make Ally an attractive place to park your IRA funds, though it doesn’t offer any no-transaction fee mutual funds.

Fees:

$0 stock and ETF trades

Account Minimum:

$0

Read Review

Pros

  • No mutual fund commissions
  • Easy to navigate
  • All-in-one financial platform

Cons

  • Few advanced features

Why Ally Invest made the list: Ally Financial is an excellent online bank, with deposit accounts, loans, and of course, an investment platform. Ally Invest one of the few brokers that has no commissions on mutual funds whatsoever, and its robo-advisor platform has a unique fee-free option.

Read our full Ally Invest review

For mutual fund and ETF selection: Vanguard

Ratings Methodology
Award Icon 2025 Award Winner
Vanguard

Vanguard

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Vanguard gets dinged slightly in our model for having high-ish account minimums for some of its services and an often-pricey fee structure for individual stocks, but it remains the gold standard for index funds and ETFs.

Fees:

$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)

Account Minimum:

$0

Read Review

Pros

  • Vanguard mutual funds and ETFs
  • Access to research

Cons

  • Low-feature investment interface
  • No fractional shares

Why Vanguard made the list: In some ways, Vanguard's brokerage platform lags behind rivals. For example, you can't buy fractional shares of stocks through Vanguard. However, it can be a fantastic choice if your goal is to invest in passive index funds or fixed-income investments.

Read our full Vanguard review

For retirement investors: Charles Schwab

Ratings Methodology
Charles Schwab

Charles Schwab

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Schwab sports hundreds of no-commission ETFs and the largest amount of no-transaction-fee mutual funds of any broker we evaluated, and individual stock trades are now $0. Its lineup of retirement accounts expands beyond just online access to robust account management capabilities via its mobile app.

Fees:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.

Account Minimum:

$0

Read Review

Pros

  • Great customer service
  • Lots of investment options
  • Tons of valuable features

Cons

  • High robo-advisor minimum
  • Not as user-friendly as rivals

Why Charles Schwab made the list: Charles Schwab pioneered the concept of a discount brokerage nearly 50 years ago, and today is one of the largest financial firms in the world. While its platform isn't as easy to use as some of its tech-focused rivals, it has tons of features that Roth IRA investors may find appealing.

Red our full Charles Schwab review

Reviews of the best Roth IRA accounts for hands-off investing

For automated investing: Wealthfront

Ratings Methodology
Wealthfront

Wealthfront

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Wealthfront is a robo-advisor that offers great value with a robust mix of account types, low fees, and a low account minimum.

Fees:

$0 per trade, management fee 0.25%

Account Minimum:

$500

Read Review

Pros

  • Low investment fees
  • Can buy individual stocks
  • Valuable features available

Cons

  • $500 minimum to start
  • No access to human advisors

Why Wealthfront made the list: Wealthfront is one of the largest and most feature-packed robo-advisors in the market. It has a reasonable management fee, and unlike some rivals, allows investors to trade individual stocks as well as automate their portfolio. It has some excellent features that might appeal to retirement savers in particular, and has strong customer service.

Read our full Wealthfront review

For low-cost passive investing: Betterment

Ratings Methodology
Betterment

Betterment

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Betterment is a robo-advisor with a great mix of features: low fees, no account minimum, fractional shares, and socially responsible investment options.

Fees:

$0 per trade, management fee of $4 per month or 0.25% per year

Account Minimum:

$0

Read Review

Pros

  • Low fees
  • Top-rated app
  • No account minimum

Cons

  • Cannot buy individual stocks
  • Premium product is expensive

Why Betterment made the list: Betterment is one of the top-rated robo-advisors, and is best suited for investors who truly want to put their investments on autopilot. It offers expert-designed portfolios of ETFs that are automatically rebalanced over time. Betterment can be an especially great choice for beginners, as it has no minimum investment requirement.

Read our full Betterment review

How do I choose a Roth IRA account?

Most major brokerage firms offer Roth IRAs, but that doesn't mean every broker's Roth IRA will offer the same features. With that in mind, here are four factors to compare as you're shopping for the best Roth IRA broker:

  • Fees and commissions: Most online brokers offer no commission fees on stock trading, but may have other fees, such as account transfers. When looking for the best Roth IRA accounts, don't forget to compare fee schedules.
  • Mutual funds: If you're planning to invest in mutual funds, check that the broker offers a wide selection of them in Roth IRA accounts and on a no-transaction-fee (NTF) basis. Some brokers have even started dropping mutual fund commissions entirely, so you don't have to constantly check if yours is on a certain NTF list.
  • Platform/app: This is where brokers often differ immensely. Some cater to hands-on, active investors by loading trading platforms with tools, charts, and resources. Others build no-frills platforms for investors who value simplicity. If you're unsure where you lie on that scale, test drive a few platforms (most will let you do this) to see which one you like best.
  • Resources: If you want to learn about investing as you're doing it, look for platforms with fully-stocked libraries or access to third-party research.

How to open a Roth IRA

Opening a Roth IRA can be boiled down to a few simple steps. If you've compared the best Roth IRA accounts and you're ready to open an account of your own, here's everything you need to get your Roth IRA up and running:

  1. See if you're eligible. Take a look at the income limits to see if you qualify. To contribute directly to a Roth IRA, you need to have earned income that is equal to or greater than your contribution, but less than certain limits.
  2. Pick a Roth IRA provider. Compare different providers, then decide which one is right for you.
  3. Open an account. You'll need identification (like a driver's license), your Social Security number, and bank account information. In addition, you'll create login credentials for your account and indicate how you want to fund it.

Most Roth IRA providers can approve you instantly (or at least within a few business days), so long as they can verify your identity. Once your account has been approved, you can transfer money into your Roth IRA, pick your investments, and continue contributing until you hit the annual limit.

How to get started with your Roth IRA account

A Roth IRA works like this: You contribute post-tax dollars (money you've already paid taxes on), then invest that money in whatever securities fit your investing strategy, like stocks or mutual funds. At any time, you can sell those securities for a profit and you don't have to pay capital gains taxes, so long as it's held within your Roth IRA. Better yet, when you turn 59 1/2, you can withdraw your earnings tax free, since you already paid taxes on your contributions.

Roth IRAs let you withdraw your contributions freely without penalty, but your earnings might be subject to taxes or penalties if you withdraw before you pass the 59 1/2 mark or before the account has been open at least five years. Unlike traditional IRAs and 401(k)s, you don't have to take required minimum distributions (RMDs), meaning there's no age after which you have to start withdrawing from your Roth IRA.

How can my Roth IRA grow over time?

Contributing up to the annual limit will certainly give your Roth IRA a good foot forward, but your selection of investments is the real engine driving your account's long-term growth. Since your account isn't bogged down by capital gains taxes, you can take full advantage of growing your money by compound interest using a combination of stocks, ETFs, mutual funds, bonds, and other securities.

For instance, let's say you contribute $6,000 annually into your Roth IRA for 25 years and choose to invest in an S&P 500 index fund. If we assume a modest 7% annualized rate of return for this fund, your account would grow to $438,623 at the end of 25 years, with $150,000 in contributions and $282,623 from investment returns you've earned.

How much do I need to open a Roth IRA?

Most brokers will allow you to open a Roth IRA with no minimum balance, so you can literally get started for a few dollars.

For tax year 2024, contributions to your IRA accounts cannot exceed:

  • $7,000 if you're under 50 years of age
  • $8,000 if you're age 50 or older (known as a "catch-up contribution")

This limit is per person, not per account. If you have two IRA accounts -- say, a traditional IRA and Roth IRA -- your total contributions cannot exceed the annual limit.

Is a Roth IRA safe?

A Roth IRA account itself is safe. Money in the account is protected against the broker's failure by the Securities Investor Protection Corporation (SIPC), which is essentially the brokerage version of the FDIC.

Having said that, the safety of your Roth IRA depends greatly on the investments you choose. Within a Roth IRA, you can choose pretty much any stocks, bonds, ETFs, mutual funds, and other investments, and there's a wide spectrum of risk within each of these categories.

What is a Roth IRA?

A Roth IRA is an individual retirement account (IRA) that lets you contribute after-tax dollars and enjoy the power of compound interest tax free. That means you don't have to pay taxes on earnings in a Roth IRA, so long as you take distributions after you hit 59 1/2 years old.

Roth IRA accounts have annual contribution limits set by the IRS, which are usually lower than 401(k)s. You can invest in a number of securities within a Roth IRA, such as stocks, bonds, mutual funds, or exchange-traded funds (ETFs).

There are some exceptions to the withdrawal restrictions. For example, you can withdraw as much as $10,000 from your IRA to use toward a first-time home purchase. You can take out any amount to pay for college expenses. And with Roth IRA accounts, you can withdraw your original contributions (but not your investment profits) at any time and for any reason.

TIP

Retirement planning resources to help you get started

Ask the experts

Joyce Beebe, Ph.D.

Joyce Beebe, Ph.D.

Fellow in Public Finance at Rice University's Baker Institute for Public Policy

What misconceptions might millennials or Gen Z have about Roth IRAs and planning for retirement?

Many millennials or Gen Z think they cannot contribute to Roth IRA (or IRA) until they start a formal job -- for instance, after graduating from college or graduate school. This is not the case; as long as an individual has earned income, he/she can contribute to an IRA up to the $6,500 annual contribution limit (for 2023) or 100% of his/her earned income, whichever is less.

Roth IRA has income limits. For single taxpayers, if his/her income exceeds $138,000, the contribution starts to phase out. When his/her income reaches $153,000, the taxpayer is not allowed to make any Roth contributions. As younger workers advance their careers, they are likely to be capped out. They are also more likely to be subject to the income limit if they live in high cost of living cities. In addition, as younger workers get married, their Roth contribution is subject to the "marriage penalty" -- the income limit for married filing jointly is $218,000 (fully phased out at $228,000), which are not doubles of the single amounts ($138,000 and $153,000).

Another misconception is that self-employed (SE) workers cannot contribute to Roth, but your website has another article that covered this recently. As such, I did not talk about the income from SE workers. A point to note is IRS's definition about "self-employed" is a lot wider than many in younger generations realize. In many cases, their side business income can qualify as SE income, hence is allowed for Roth IRA contributions.

How can I determine if a Roth IRA makes sense for me?

Assuming investors have enough funds to save for retirement, they should consider all options available to them -- most likely Roth IRA and employer plans such as 401(k) accounts. However, be mindful that from a tax perspective, they are different. They are also very different from account administration and plan design perspectives. For tax, Roth IRAs are "after tax" in that taxpayers do not receive deductions for the contributions made. 401(k) contributions are "pre-tax" in that the contributions are tax-deductible. In addition, many employer plans provide matching for 401(k) contributions, and a recent Congressional proposal, if it passes, will allow employer plans to match participants' student loan payments, similar to those of retirement plans.

Many researchers think that, given the current level of the U.S. deficit, it is highly likely that future tax rates will increase to finance government expenditures and debt payments. If one believes this to be the case, prepaying taxes under Roth IRA will be an attractive option.

One more note is that although many have touted that there are no penalties or taxes to withdraw one's Roth contributions as a benefit, there may be tax consequences for withdrawing the earnings/capital gains before the retirement age. The IRS provides several exceptions; however, it is still not ideal to view Roth IRA as an emergency savings account.

What is the biggest advantage to using a Roth IRA?

The biggest advantage of Roth IRAs is that typically, younger workers have lower tax rates at the early stage of their careers. As such, they prepay taxes at a lower rate (compared with tax rates at later stages of their careers -- even if no tax rule changes), and any capital gains accumulated in the account are tax free upon withdrawal. Younger workers also have a longer investment horizon, so starting investing early really helps.

Not everyone’s Roth can be subject to astonishing returns like Peter Thiel's, and Congress is considering adding restrictions to the Roth IRA. However, these cases should not prevent younger workers from starting contributions to a Roth IRA early on.

John Banko

John Banko

Wells Fargo Faculty Fellow, Senior Lecturer

What are some pros and cons of creating an IRA?

IRAs have one main advantage -- gains are not taxed for a long time. For me, the distinction between the Roth IRA and traditional IRA is just details and perhaps something to talk about with a tax pro. But whether you picked correctly (minimized taxes) will be answered when you retire. IRAs have one main disadvantage: the funds are somewhat locked up until you retire. If a situation arises where you need the funds before the IRS-defined age of retirement, there are penalties, extra forms, notes from your mom -- unneeded hassle to get the money. Hassle that is not the case in a non-IRA investment account.

How actively do investors need to manage their IRA in order to get the most gain?

If you start trading, even occasionally, then taxes come into play. The IRA will defer the taxes. The non-IRA account will be subject to taxes on gains if shares are sold.

Who should open an IRA?

If you believe you should save for retirement, and you want to take advantage of the U.S. system for doing that, the IRA will likely promote a long-term savings plan, offer reasonable returns given the risk, have a tax advantage, and your employer will likely help facilitate all this. But it needs to be part of a well-designed retirement plan, and is likely only one element of that plan. An IRA is no guarantee of a solid retirement, and it certainly has risks. Step one is developing a plan with concrete goals. With that, an IRA is likely in the mix.

Jason Reed

Jason Reed

Associate Teaching Professor of Finance

What are some pros and cons of creating an IRA?

Investors looking to maximize their contributions toward retirement should really think about opening an IRA alongside any employer-sponsored retirement program. There are limited downsides and the upside of saving for retirement with an IRA can be life-changing. When making the decision to open and invest in an IRA, deciding between a traditional or Roth IRA can offer different pros and cons.

For either type of IRA, however, you will have access to traditional financial assets like stocks, bonds, ETFs, mutual funds, and money markets. Investors can choose their level of participation in growth, but for almost everyone, a consistent contribution to an ETF with broad market exposure coupled with a hands-off approach is best. Set it and forget it. That's your biggest risk-adjusted bang for your buck.

The biggest difference between a traditional and Roth IRA is how your contributions are taxed. For some, a Roth IRA's after-tax contributions are considered a benefit, especially if you expect to retire in a higher income tax bracket. You really can let your investment grow tax-free. On the other hand, since a traditional IRA offers income tax deductions, it might be just the nudge you need to begin investing in an IRA.

One potential downside to investing in a Roth IRA is that for high-income earners, you might not actually be eligible to make contributions. This would obviously limit the effectiveness of this investment vehicle. Similarly, for high-income earners, your traditional IRA contributions may not be fully tax deductible.

Additionally, both IRA options do have a contribution cap. Depending on your age, you'll be able to contribute up to either $6,500 or $7,500 per year. Moreover, traditional IRA investors are required to begin mandatory divestments starting at age 70 ½ or 72 (depending on your birthday). This isn't the case, however, with Roth IRAs. Again, you can let your investment grow well into retirement.

Another potential con to a traditional IRA is that early withdrawals are penalized 10% on top of taxes owed (some exceptions are allowed). On the other hand, since Roth IRAs are after-tax investment vehicles, you are allowed to withdraw your contributions penalty- and tax-free.

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FAQs

  • You can have as many Roth IRA accounts as you want, but it's important to know that the annual maximum contribution is per person, not per account. In other words, if you have two Roth IRAs, your total contribution between both accounts cannot exceed $7,000 (or $8,000 if you're 50 or older) for 2024.

  • Roth IRA accounts are generally best for people who are in the lower tax brackets now or who want to avoid taxes entirely in retirement. If you're in a high tax bracket and qualify for a traditional IRA, it may be the smarter move for you. However, Roth IRAs have other key benefits, such as the absence of required minimum distributions and the flexibility to withdraw your contributions whenever you want.

  • Less than you might think. Many of our top brokers will allow you to open a Roth IRA with as little as $1. You may need more to start investing -- for example, you might need enough to purchase at least one share of whatever stock or ETF you're looking at -- but you can open an account with very little money.

  • If you're older than 59 1/2 and your Roth IRA has been open for at least five years, you can withdraw as much as you want without any penalties or tax implications. However, it's important to note that you can withdraw your original contributions at any time and for any reason.

  • For a tax- and penalty-free withdrawal of investment gains, your Roth IRA must have been open for at least five years, and you must be at least 59 1/2 years old. But you can withdraw the contributions you've made to a Roth IRA at any time and for any reason.

  • Roth IRAs are excellent for retirement savers who want flexibility. You can withdraw your Roth IRA contributions (but not investment gains) at any time, and it generally takes no longer than a day or two to do so.

  • Yes, as long as you qualify based on your income. If your other retirement account is a traditional IRA, your overall IRA contribution to both accounts cannot exceed the annual maximum. For 2024, this is $7,000, or 8,000 if you're 50 or older.

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