5 Best Roth IRA Accounts for Retirement Savings

best ira accounts

The Roth individual retirement account is an excellent investment tool to grow your nest egg. This is because unlike other retirement options, funds are contributed after taxes, which provide you with tax-free withdrawals once you reach the age of 59 1/2. Income eligible investors under the age of 50 may contribute up to $6,000 to a Roth IRA annually, while those 50 and above are allowed $7,000. Several financial companies offer different Roth IRA accounts with a variety of trading fees and commission structures.  To help you decide the best Roth IRA for your needs, here are five we recommend.

5 Best Roth IRA Accounts

  • Fidelity IRA: Best for beginner investors
  • Merrill Edge IRA: Best for assistance in person
  • Betterment IRA: Best for automated investing
  • Charles Schwab IRA: Best for all investors
  • TD Ameritrade IRA: Best for knowledgeable investors

Best Roth IRA Accounts: Our Top Picks

Fidelity IRA – Best for Beginners

The Fidelity IRA is the best Roth IRA for beginner savers or those opening a Roth for the first time. Above all Fidelity offers low fees and keeps trading commissions at a competitive price. The website layout is easy for a novice to understand and use to research an investment or place an order. For example a robust educational library is available to learn more about investing, and customer service representatives can be contacted for more customized help.

Merrill Edge IRA – Best for Assistance in Person

Merrill Edge IRA is the best Roth IRA for people who prefer to meet in person with an advisor to set up or manage their account. Merrill’s analysts provide savers with deep research about their investment options. The company also offers convenient service at more than 2,500 Bank of America locations throughout the country. You can open an account with any amount however investors can receive up to $600 cashback with a qualifying deposit.

Betterment IRA: Best for Automated Investing

The best Roth IRA for anyone who wants to let someone else do the investing and fund management is the Betterment IRA. Savers submit their retirement goals and risk tolerance, and Betterment creates a portfolio to meet their needs. Consequently the company is a trusted name in automated investing and has been in business since 2008.

Charles Schwab IRA: Best for All Investors

The Charles Schwab IRA is the best Roth IRA for all types of investors, from beginners to active traders. It offers zero commission fees for stock and ETFs, as well as 4,000 available mutual funds with no transaction fees. When opening an account there is no minimum amount. Depositors also get responsive customer service and excellent educational tools to learn about their investment options.

TD Ameritrade IRA: Best for Knowledgeable Investors

TD Ameritrade IRA is the best Roth IRA for those do-it-yourself investors who want a wealth of research tools to assist them as they create their own account. They also find great customer support available when they need it. TD Ameritrade offers zero commissions on ETF, stock and option trades and offers plenty of mutual funds with no transaction fees. Account-holders have the option to pay for broker-assisted trades as well. Moreover there is no minimum requirement to open an account.

Best IRA Accounts – The Bottom Line

Each of these Roth IRA options can be a powerful retirement savings tool. They are worth checking out further to select the one that will give you the best results towards your retirement and investing goals. All of our top five recommendations offer the ease and convenience of opening an account online.

Quick Questions

What is the difference between a Roth IRA and a traditional IRA?

Your contributions to a Roth IRA are made after taxes, which means you withdraw them tax-free during your retirement. Traditional IRA contributions are invested before taxes and are taxed when you withdraw them from your account.

Can you lose money in a Roth IRA?

Like all investment options, market fluctuations can cause you to lose money in a Roth IRA. Withdrawing funds from the account before the age of 59 1/2 will cost you an early withdrawal penalty. Roth IRAs do best when you regularly invest money in your account and give it the necessary time to grow.

Who is eligible for a Roth IRA?

Eligibility for a Roth IRA is dependent on your Modified Adjusted Gross Income amount claimed on your taxes. Certainly, your MAGI needs to be under $139,000 if you file as a single person and under $203,000 if you are married and file a joint return.

There are a lot of investment options available to help you grow your nest egg. Check out our look at the five best robo advisors.