Saving for a financial goal that may be years, or sometimes even decades away, may not be at the top of your to-do list, but time moves quickly and it’s important to save for your golden years as early and efficiently as possible.
That’s where your retirement savings account comes into play. There are several different savings vehicles you can use to begin saving for retirement.
If you’re looking for a place to park your retirement savings, we’ll help make the decision a little easier. The Fortune RecommendsTM editorial team reviewed close to 20 Roth IRA accounts across various financial institutions. We weighed minimum account deposits, minimum balance requirements, account fees, investing assets, and customer service options. (Read our full methodology here.)
Our 10 top picks
- Interactive Brokers Roth IRA
- Firstrade Roth IRA
- Ally Invest Roth IRA
- Charles Schwab Roth IRA
- TD Ameritrade Roth IRA
- Fidelity Roth IRA
- Fidelity Go® Roth IRA
- M1 Finance Roth IRA
- TIAA Roth IRA
- SoFi Roth IRA
*Last updated March 16, 2023.
The 10 best Roth IRAs of March 2023
While saving for retirement is a common goal, there are several routes you can take to get there. The retirement savings account you choose can make a huge difference in how much you’re able to save in a given time and how quickly you hit your retirement savings goals. (Note: rates, fees, and account requirements are up to date as of March 16, 2023, but are subject to change.)
1. Interactive Brokers Roth IRA
About: Headquartered in Greenwich, Connecticut, Interactive Brokers (IBKR) has a 46-year history and offers customers a wide range of assets to invest in, including stocks, options, futures, mutual funds, fixed income and more.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%
Customer support
Customer service representatives are available to assist account holders 24/7 via phone, chat, email, or mail.
Our verdict: Good for savers who want exposure to a wide range of assets.
Interactive Brokers’ Roth IRA made our list for the long list of assets account holders are able to invest in, including stocks, options, futures, bonds, and more. An added bonus: Interactive Brokers does not charge any fees for account maintenance or termination. For savers who are hoping to trade on margin, IBKR notes that futures margin trading in an IRA is subject to higher margin requirements than in a non-IRA margin account.
2. Firstrade Roth IRA
About: Firstrade was founded in 1985 and offers online and mobile trading of stocks, ETFs, options, mutual funds, fixed income products and more.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%
Customer support
For assistance, customers can reach a Firstrade representative via email, fax, and telephone, Monday through Friday, from 8:00 A.M. to 6:00 P.M. ET.
Our verdict: Good for savers who hate fees.
Firstrade’s Roth IRA took the second spot on our list for its zero-fee model. This account doesn’t charge any fees for account set-up, maintenance or inactivity. This account also has no minimum deposit or balance requirement and doesn’t charge commissions on stocks, options, and mutual funds. Bonus: for a limited time, Firstrade is offering $200 in transfer rebates for rolling over any existing IRA you may have into a Firstrade account.
3. Ally Invest Roth IRA
About: Ally is an online-only bank that offers a host of investment accounts and tools including a self-directed trading account, robo portfolios, personalized guidance from experienced wealth advisors, Forex trading, IRAs, cryptocurrency accounts, and more.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0.75%–0.85%
Customer support
For assistance with any of Ally’s bank investment products or services, customers can reach a representative via live chat, email, or phone 24/7.
Our verdict: Good for those who need a little extra support from a customer service rep.
Ally’s Roth IRA made our list for its wide range of investment assets and various customer support avenues. This account does have a $25 account termination fee should you decide to close your IRA and a wealth management fee that is higher than some of the other accounts on our list.
4. Charles Schwab Roth IRA
About: Schwab opened its first branch in Sacramento, California, in 1975 and first launched its online trading platform at the start of the internet boom in the late 1990s and now executes an average of over 5 million trades per day.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%
Customer support
Schwab offers 24/7 phone and online chat support as well as in-person support at one of its more than 300 branches across the US.
Our verdict: Good for those who need some hand-holding when it comes to saving for retirement.
Schwab’s Roth IRA has a lot to offer savers who are looking for extra educational resources and support to guide them on their retirement saving journey. Schwab offers a host of educational tools and resources such as calculators, market commentary, and investing ideas from Schwab experts. Savers can open an account with a $0 minimum deposit plus get $0 online listed equity trade commissions.
5. TD Ameritrade Roth IRA
About: TD Ameritrade first launched as Ameritrade in 1971 and later became TD Ameritrade in 2006 after being purchased by TD Waterhouse USA from TD Bank Financial Group. It offers self-directed brokerage accounts, professionally managed investment accounts, retirement accounts, education savings accounts, and more.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%
Customer support
TD offers 24/7 phone support and chat support via Facebook Messenger and Twitter Direct Message.
Our verdict: Good for those who need some help shaping their retirement saving strategy.
TD’s Roth IRA has zero annual account fees or management fees, and distributions for your account beneficiaries are tax free. TD also offers a suite of educational tools and resources, including an IRA selection tool and retirement calculator to help you decide how much you need to save for your retirement and select the account that meets your needs.
6. Fidelity Roth IRA
About: First founded in 1946 and headquartered in Boston, Fidelity serves its customers through 12 regional sites across the globe and more than 200 Investor Centers. It prides itself on its low fees, quality customer service, and tools to help customers manage their everyday finances.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%
Customer support
Representatives are available to answer any questions regarding your brokerage account via telephone 24/7, live chat Monday through Friday between 8:00 a.m. and 10:00 p.m. ET, as well as Saturday and Sunday between 9:00 a.m. and 4:00 p.m. ET.
Our verdict: Good for those who prefer to choose and manage their own investments.
Fidelity’s Roth IRA puts savers in the driver’s seat and requires that they choose their own investments. As a result, this account doesn’t charge any advisory fees or annual account fees. Although, you may be responsible for fees that are specific to the assets you invest in.
7. Fidelity Go® Roth IRA
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%–0.35%
Our verdict: Good for those who liked our sixth pick, but want some extra perks.
No, you’re not seeing double—Fidelity has two Roth IRAs that made the list. The Fidelity Go® Roth IRA made our list for offering everything that the basic Fidelity Roth IRA offers, plus a few added bonuses. With this account, Fidelity experts will evaluate your retirement goals and risk tolerance to select investments that make sense for your long-term plan. You’ll also have access to a team of Fidelity advisors for 1-on-1 coaching after your account balance has reached $25,000. Another key difference: this account invests in fee-free mutual funds. Beware: unlike Fidelity's basic Roth IRA, this account charges a 0.35% advisory fee for accounts with balances of $25,000 or higher.
8. M1 Finance Roth IRA
About: M1 Finance is an investment app that offers spending, saving, and investment accounts, including three different types of retirement accounts.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%
Customer support
M1 customer service representatives can be reached via telephone Monday through Friday, between 9:00 a.m. and 4:00 p.m. ET, excluding market holidays. The platform also offers email support and automated chat support.
Our verdict: Good for long-time savers who are on the hunt for a new account.
M1’s Roth IRA not only has zero account minimums and fees, and a suite of financial products to meet all of your needs, but it also boasts the most generous introductory offer (if you meet the requirements). Until March 31, M1 is offering account holders up to $10,000 to invest when you transfer your brokerage account to an M1 Invest Account. The promotion is tiered, with a minimum promotional credit of $250.
9. TIAA Roth IRA
About:TIAA Bank is a subdivision of TIAA, or the Teachers Insurance and Annuity Association which is headquartered in New York. TIAA offers both traditional and Roth IRAs, in addition to other investment and banking products and services.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%
Customer support
TIAA representatives are available via email and by telephone, Monday through Friday from 8:00 a.m. to 5:00 p.m. ET.
Our verdict: Good for those who don’t plan to close their account.
TIAA’s Roth IRA doesn’t have a minimum deposit to open or maintain an account and doesn’t charge any management fees. Savers have access to a wide range of assets, including mutual funds, stocks, bonds, annuities, and more. However, this account did have the highest account closure fee on our list at $130.
10. SoFi Roth IRA
About: SoFi is an online bank headquartered in San Francisco that offers checking, savings, investing products, and more.
Account minimum: $0
Annual account fee: $0
Advisory fee: 0%
Customer support
Customers can request assistance 24/7 by reaching out to SoFi via phone, chat, email, and even sending general questions to the Twitter account at @SoFiSupport.
Our verdict: Good for those who don’t need a ton of investment options.
SoFi’s Roth IRA took the final spot on our list for its lack of account fees and minimums. However, this is more of a no-frills account as savers’ portfolios will only be made up of stocks and bonds.
What to know about Roth IRAs
Roth IRA’s function a bit differently than other types of retirement accounts. Withdrawals from your Roth IRA during retirement are tax-free, because as you save, you’ll pay taxes on the money you contribute to your account.
What’s more—you can withdraw contributions you’ve made to your Roth IRA without having to pay extra taxes or penalties if you meet certain age requirements and have had your account for more than five years.
It’s also important to note that Roth IRAs have certain contribution limits outlined by the IRS. For 2023, the total contributions you make each year to your Roth IRAs can't be more than $6,500 ($7,500 if you're age 50 or older). You’ll have to meet certain income requirements as well and this will vary depending on your tax filing status. To contribute to a Roth IRA, you must have a modified adjusted gross income (MAGI) of less than:
- $153,000 for single filers
- $228,000 for married and filing jointly
How to choose a Roth IRA
If you’re considering a Roth IRA for your retirement savings, you’ll want to consider the following before settling on one account:
Account fees and minimums: Read the fine print on the account you’re considering to determine if that institution or platform charges a minimum to open or maintain your account. Does that account offer any added perks that may justify a higher fee such as financial coaching or access to a wider range of investment options? Some accounts charge zero fees and don’t have any account minimums, while others have minimums in the thousands. If you’ve just started saving for retirement, you might prefer an account that requires less or no money upfront.
Investment assets: The assets available for you to invest in are not uniform across the board. Some Roth IRAs are made up of just one or two assets, while others can give you exposure to a more diverse mix of assets.
Educational resources: Some consumers may need a little more guidance when it comes to saving for retirement and figuring out how much they should be saving and how that should change over time. If you’re not sure what your strategy should be or how to prepare for retirement, it might be more beneficial to open an account with an institution that offers a suite of educational resources for extra guidance.
Alternatives to Roth IRAs
Roth IRAs are not the only retirement savings vehicles you can choose from. Some alternative options include:
Traditional IRA: A tax-advantaged personal savings plan where contributions may be tax deductible.
401(k): An employer-sponsored retirement account that allows employees to contribute a portion of their pre-tax income to their account. These contributions grow tax-free until the funds are withdrawn during retirement.
SEP IRA: This is a Simplified Employee Pension plan set up by your employer. Contributions made to this IRA are made directly by your employer.
SIMPLE IRA: A Savings Incentive Match Plan for Employees set up by an employer. Under a SIMPLE IRA plan, employees can opt to make salary reduction contributions, and the employer makes matching or nonelective contributions.
Payroll Deduction IRA: This IRA is set up by an employer. Employees make contributions by payroll deduction to an IRA (Traditional or a Roth IRA) they establish with a financial institution.
Frequently asked questions
What’s the minimum amount needed to open a Roth IRA?
The IRS does not require a minimum deposit to open a Roth IRA. However, your financial institution may have its own rules and requirements to open a Roth IRA.
What’s the difference between a Roth IRA and a traditional IRA?
The key difference between the two account types is that a Roth IRA allows you to make after-tax contributions that will grow tax-free. You’re also eligible to make tax- and penalty-free withdrawals after a certain age. Contributions made to a traditional IRA can be made with pre-tax or post-tax dollars and that money will grow tax-deferred. You won’t pay taxes on that money until you make a withdrawal.
Can you withdraw money from a Roth IRA?
You can withdraw contributions made to your Roth IRA without incurring any taxes or penalties. However, you can only withdraw Roth IRA earnings after age 59 ½ and after you’ve had the account for five years in order to avoid paying taxes and penalties.
Our methodology
The Fortune RecommendsTM team compared Roth IRAs from almost 20 different financial institutions and platforms. Our top picks are available across the U.S., so you can sign up for an account no matter where you’re located. We ranked the retirement accounts on the following categories:
- Minimum opening deposit requirement (10%): While the IRS does not require a minimum deposit for Roth IRAs, many financial institutions have their own account minimums in place. We favored accounts with lower or no minimum opening deposits.
- Minimum balance requirement (10%): The IRS does not require a minimum balance for Roth IRAs, however your financial institution may have its own rules. We ranked accounts with lower or zero minimum balance requirements higher on our list.
- Annual account fee (10%): Some financial institutions require that account holders pay an annual fee for account maintenance and services.
- Advisory fee (25%): An annual advisory fee is charged by some institutions to cover the services provided by the financial platform and its professionals. The fee is usually charged as a percentage of assets under management on the platform.
- Investment options (25%): We gave each account 1 point for each type of asset available to clients. This included fixed income and bonds, mutual funds, REITs, ETFs, options, CDs, and money market funds.
- Account termination fee (15%): Another fee charged by some platforms and financial institutions is an account closure or termination fee. Accounts with lower or no closure fee ranked higher on our list.
- Customer service (5%): Top picks offer customers various ways to get in contact: chat support, by phone, or even email; phone support was most highly rated by our team.
The rates, fees, and minimum deposit requirements for Roth IRAs are subject to fluctuation at the discretion of the individual banks and brokerages on our list.
