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Best Individual Retirement Account (IRA) Providers

For a person searching for the best individual retirement account for their needs, researching these tax-advantaged accounts can determine whether they'll provide you with the retirement savings you're after. Compared to a 401(k) or other workplace policy, an IRA can provide individuals with a wider range of investment choices and greater returns over time.

As long as you have eligible earned income, you can make retirement arrangements as soon as you're able for traditional IRA contributions, Roth IRAS, SEP IRAS, a spousal IRA, or a SIMPLE IRA. Note that these accounts may have different requirements depending on whether you have a spouse, a qualified employer, and a different contribution limit per account.

What to Look for in an IRA Provider

Before choosing an IRA account, considering various factors like contribution limits can help you decide which insurance company, bank, or brokers and robo-advisors to consult. Those that have retirement planning tools, clear reports, competitive fees, and good customer service can help you speed up your retirement plan and grow your funds.

The main types of IRAs include a traditional IRA and a Roth IRA. With a Roth IRA, you contribute after-tax dollars, you'll grow your money tax-free, and you can usually make tax and penalty-free withdrawals after age 59½. In contrast, a traditional IRA allows you to contribute either pre or post-tax dollars, and they grow tax-deferred. Withdrawals are taxed as current income after age 59½.

Top IRA Providers Worth Looking Into

Depending on your priorities, the top IRA providers typically provide a selection of traditional IRAS, SIMPLE IRAs (Savings Incentive Match Plan for Employees of Small Employers), and other tax-deductible options.

However, each company or brokerage has its unique strengths and weaknesses regarding individual retirement accounts, so it's important to shop around and do your research.

1.) Charles Schwab

One of the best options in the United States to explore if you're looking for a rollover IRA, Roth IRA, or Traditional IRA is Charles Schwab. They offer many retirement accounts where you can either start investing alone or pay for a professional advisor to help you grow your money. Their website has a Retirement Income Quiz to help you learn about other areas for further study.

Pros

  • Free to set up
  • Has no account or trading fees for ETFs
  • Includes access to retirement planning resources
  • Their page is easy to navigate

Cons

  • Some mutual funds include a $76 fee when purchasing
  • Schwab Intelligent Portfolios Premium costs a $30 monthly fee
  • Charges a $50 (full) or $25 (partial) fee when transferring accounts

2.) SoFi

A relatively small business compared to other online brokerages, SoFi charges no recurring account fees if you're looking for a traditional or ROTH account. For beginners who want to contribute to an IRA and grow their tax-deductible savings, they provide individuals with in-app access to educational resources.

Pros

  • No minimum balance requirements or monthly account fees
  • Offers access to a free robo-advisor
  • Free financial planning sessions for retirement plans
  • Can view investments in the SoFi app
  • Has a wide range of mutual funds

Cons

  • Charges $75 for transferring your brokerage account
  • Limited track record
  • Lacks an option for stop-loss orders

3.) Fidelity

Fidelity aims to help younger individuals save for retirement and grow their earned income. They also offer older adults tools and simplify the process of rolling a 401(k) balance into an IRA. In addition, they offer access to useful tools like calculators and goal-setting tools to work out total your IRA contributions. There's even a section on Roth IRAs for Kids.

Pros

  • Charges affordable transaction fees for IRA accounts
  • Known for their online customer service including their helpful chatbot
  • Offers access to a wide range of assets
  • The site is easy to navigate

Cons

  • Automatic dividend reinvestment is fixed and can only be changed via customer service
  • Automated investment option charges fees for balances between $10,000 and $49,000

4.) Merrill Edge

Merrill Edge is known for its wide variety of mobile apps that can help individuals open different IRA accounts, whether you're looking for traditional IRAs or other options. With a range of videos and webinars and online courses, they help those interested in long-term planning.

Even better, they can help you keep track of your contributions with their Portfolio Story feature that is personalized for each client.

Pros

  • Provides in-depth portfolio analysis for Bank of America accounts
  • Includes detailed life stage planning tools
  • Has a customizable news feed with reports from over 35 financial providers
  • Has helpful customer service

Cons

  • Has limited complex options trading types like Forex trading
  • Professionally managed portfolios are more costly compared to than self-directed traditional IRA accounts

Frequently Asked Questions

How soon should I start saving up for retirement?

Ideally, individuals should start making contributions to an IRA account as soon as they start earning a paycheck. The sooner you start saving your money in an investment account, the more time it has to grow in the future. Investing in either traditional and Roth IRAs can pay off significantly in the long run.

What makes a good IRA provider?

Finding the best IRA provider takes time and patience. When comparing individual retirement accounts, some information you should look out for includes looking at their brand reputation, level of customer service, number of investment options (beyond bonds, funds, stocks), low fees, an easy user experience, and type of investments you're interested in making.

Additional Resources

Working with an Investment Professional

This resource provides a brief overview of what kind of investment professionals you should work with and what credentials and qualifications can qualify them for their advisory role. Other pages and tools on this website can help you understand investment fees, examine your risk tolerance, and more.

Retirement Planning Basics

This resource will help you get started when it comes to saving your money for retirement. It includes a list of questions you should ask yourself before retiring, different ways you can prepare for the future, as well as other government benefits that you can gain access to.

While many financial institutions are qualified to provide aid to help you grow your IRA contributions, there are different levels of quality and advice to be found in each provider. Depending on your tolerance for risk, your investments can also grow at a faster or slower rate in relation to the fees that they charge for their services.

For those who are still unsure about where to start when it comes to investing your money, our team of experts at Any Credit can help you answer any questions you have when it comes to your IRA contributions, retirement plan at work, and more. Contact Any Credit today!

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