Whether you don't have access to a 401(k) or are looking for a companion retirement account alongside your employer-sponsored one, you can open an IRA from top providers like Vanguard and Charles Schwab.
The best IRA accounts, including the best Roth IRA accounts, are powerful investment vehicles to build long-lasting wealth. Whether a beginner or an experienced investor, you can benefit from the best individual retirement accounts.
Below, we've listed our top picks for who has the best IRA accounts, as chosen by our Business Insider editors in 2025.
Best IRA Accounts
- Charles Schwab IRA: Best Overall IRA
- Fidelity IRA: Best IRA for Tools and Features
- Betterment Investing: Best IRA for Passive Investors
- SoFi IRA: Best IRA for Fee-Conscious Investors
- Vanguard IRA: Best for Younger Investors
- Goldco: Best for Gold Bugs
Featured IRA Providers
$1,000
2.00% transaction fee, and a 0.08% security fee billed monthly
Traditional IRA, Roth IRA, Solo 401(k), Solo 401(k) Roth, SEP IRA, and Simple IRA
$150 bonus when signing up
Pros
Cons
- Features: 24/7 trading, offline storage, and $250 million insurance
- Better Business Bureau rating: A+
- Awards: Earned the Mobile Web & App of the Year award for the 2022 Globee American Best in Business Awards
$0
0% ($5/month for Robinhood Gold)
Pros
Cons
- App store rating: 4.2 iOS/4.0 Android
- Consider it if: You want to trade crypto and invest in a wide range of stocks and ETFs.
$0
0%
Traditional IRAs, Roth IRAs, and SEP IRAs
Pros
Cons
SoFi is a great choice for traditional IRAs. In addition to other investing, loans and savings options, the advisor provides Roth and SEP IRAs.
SoFi IRA- Consider it if: You're new to investing and want a variety of low-cost retirement, investing, and savings options.
- App store rating: 4.8 iOS/4.3 Android
Best Overall IRA
Charles Schwab is the best overall IRA account. Schwab is a behemoth in the retirement savings and planning industry and supports robust retirement planning tools, resources, and investment strategies.
Schwab's traditional IRAs are free to set up and don't include any account or trading fees. Traditional IRAs include $0 online equity trades, 24/7 customer support, retirement planning resources, and access to the following investments: stocks, bonds, ETFs, mutual funds, and CDs.
Schwab's IRAs also feature access to investing and market insights from Schwab experts. And — if you're looking for a robo-advisor or professionally managed portfolios — you can take advantage of Schwab Intelligent Portfolios or Schwab Intelligent Portfolios Premium.
Each automated investing account is also compatible with Roth IRAs, SEP IRAs, SIMPLE IRAs, and inherited IRAs.
Pros of a Schwab IRA
- No minimum to open regular IRA accounts
- Access to investment and market insights from Schwab experts
- Schwab Intelligent Portfolios and Portfolios Premium
Cons of a Schwab IRA
- High minimum for Schwab Intelligent Portfolios and Portfolios Premium
Best IRA for Tools and Resources
Fidelity is another major IRA player offering one of the best IRA accounts for all kinds of investors. But what makes Fidelity stand out is its suite of robust retirement tools and resources to help retirement savers invest and save more efficiently.
Retirement savers can utilize Fidelity's wide range of retirement planning resources, including access to the comprehensive learning center, which explains complex financial topics. Fidelity also has a large collection of retirement calculators:
- Social Security Benefits Calculator: Compares estimated benefits at different ages to see how certain factors impact your benefit amounts.
- Cost of Leaving the Workforce Calculator: Helps unpack what your financial situation would look like if you were to stop working and take care of a loved one
- Required Minimum Distribution Calculator: Determines how much you need to withdraw after age 73
- Roth Conversion Calculator: Helps investors see if a Roth conversion is a good idea
- IRA Contribution Calculator: Helps retirement savers decide which IRA account type and how much they can save and deduct from their taxes
Other tools are a retirement income calculator, annuities, IRA contribution calculator
Fidelity's traditional IRAs come with $0 account minimums and commission-free trades on stocks, ETFs, and options. The brokerage also offers several other retirement accounts, including Roth IRAs, rollover IRAs, small business retirement plans, and Roth IRAs for Kids. You can access no-transaction-fee funds, commission-free stocks and ETFs, and zero-expense ratio index funds.
Fidelity Fidelity IRA also offers an automated option, Fidelity Go, that provides personalized advice for hands-off investors. There's no minimum for balances under $25,000.
If your account exceeds $25,000, you'll be subject to an annual 0.35% management fee. On the bright side, you'll get unlimited access to one-on-one consultations from Fidelity advisors.
If you choose Fidelity Go, you'll pay $0 if you have an account balance below $25,000. You'll pay a 0.35% fee if you've got more than $25,000.
Pros of a Fidelity IRA
- No minimum to open an IRA (excluding Fidelity Go)
- Comprehensive retirement planning resources
- No fee and low-cost investment options
Cons of a Fidelity IRA
- If you choose Fidelity Go, you'll pay $0 with an account balance below $25,000. You'll pay a 0.35% fee if you've got more than $25,000
Best IRA for Passive Investors
Betterment IRA is the best IRA for passive investors wanting comprehensive and tax-efficient automated portfolio management. You can pick a pre-built portfolio or build your own with low-cost ETFs. Betterment offers two plans: Digital and Premium.
You can set up the Digital plan without an account minimum, but it'll cost you an annual 0.25% account fee (or $4 a month) and a minimum of $10 to start investing.
Betterment additionally offers features such as tax-loss harvesting, socially responsible investing, access to CFPs, automatic rebalancing, and continuous investment monitoring.
You must sign up for the Premium plan to get unlimited financial planner access, which requires a $100,000 minimum deposit and a 0.40% annual fee. But you can still sign up for one-time advisor consultations. Costs for such consultations start at $299.
Betterment can also manage your trust. You can earn interest on your trust account savings with a high-yield cash account. Investor funds are FDIC insured.
Pros of a Betterment IRA
- SIPC coverage up to $500,000
- Access to human advisors
- $0 minimum for Betterment Digital
Cons of a Betterment IRA
- You must be a Premium member to access ongoing CFP access
Best IRA for Fee-Conscious Investors
SoFi® It is the best IRA account for fee-conscious investors seeking low-cost portfolio options. It is also a stand-out IRA for beginners for its ease of use and robust trading tools. In addition to other investing, loans, and savings options, SoFi provides Roth and SEP IRAs.
SoFi is a discount mobile brokerage offering no-fee stocks, ETFs, and fractional shares. Low-cost investing allows budget investors to increase portfolio diversification without putting down large sums of cash. With as little as $1, you can set up automated investing.
The company provides certified financial planners, and it even offers Stock Bits, or fractional shares, for account holders looking to buy smaller portions of companies.
Pros of a SoFi IRA
- No minimum to open IRA account
- CFP access
Cons of a SoFi IRA
- SoFi has a limited selection of investments compared to other popular brokerages
- No tax-loss harvesting
Best IRA for Younger Investors
Vanguard is another industry-leading IRA provider, home to the top-performing Vanguard retirement-focused target-date funds. The asset allocation and risk profile in Vanguard's target-date funds are shift over time as an investor approaches retirement. The long-time horizon of these funds makes Vanguard the best IRA for younger investors who have the time to take on more risk.
Vanguard offers a suite of retirement accounts and financial planning services that are best for the long term, but with the ease of use and affordability usually provided by beginner-friendly platforms.
For a $0 minimum, you can open a self-directed traditional, Roth, SEP, SIMPLE, or rollover IRA. Most Vanguard IRA retirement plans are available through Vanguard's robo-advisor and managed account option, but you'll have to meet higher minimum requirements and fees.
Vanguard offers retirement planning services and tools, such as tax-loss harvesting, retirement income calculators, worksheets, and informational guides.
Pros of a Vanguard IRA
- No account minimum to open
- Vanguard target-date funds
- Robust selection of retirement planning resources and tools
Cons of a Vanguard IRA
- "F" rating from the Better Business Bureau
- High minimum requirement for Vanguard Digital Advisors and Personal Advisor Services
Best for Gold Bugs
Goldco is at the top of our list of the best gold IRAs. It is the best IRA for investors who are passionate about the longevity and reliability of gold investments, otherwise known as gold bugs.
There are many gold IRA providers out there, but Goldco is the only gold IRA company with no minimum balance requirement to open an IRA. This makes Goldco more accessible to those who want to invest a small portion of their retirement savings in gold. Moreover, Goldco has a strong reputation for trustworthiness and diligent customer support.
Goldco is a great option for investors who want to diversify their portfolios with competitively priced gold and silver assets. Investing in gold also helps you hedge against inflation.
However, you must call a Goldco representative for a full fee disclosure, as information on its site is lackluster.
Pros of a Goldco IRA
- No minimum to open a gold IRA; gold IRAs usually require a few thousand to open
- Has an "education first" approach for novice gold investors
Cons of a Goldco IRA
- Limited investment selection
- You have to call a Goldco representative for a full fee disclosure
What is an IRA Account?
IRA accounts are tax-advantaged retirement savings vehicles for people to contribute pre-tax or after-tax dollars toward their golden years. You can open a traditional or Roth IRA at any age, but you won't be able to withdraw penalty-free until you're at least 59 1/2.
Like a 401(k) plan, the money in your IRA grows over time due to compound interest and investment opportunities. An IRA gives you more control and flexibility over how your funds are managed. But you can only contribute up to a certain amount each year.
Types of IRAs
- Traditional IRA: Traditional IRAs are retirement accounts funded by pre-tax dollars to offer the benefit of tax-deferred growth. Investors receive an initial tax break and pay less tax if they are in a lower tax bracket during retirement compared to their working years.
- Roth IRA: Roth IRAs are funded by after-tax dollars for the benefit of tax-free growth and withdrawals. Roth IRAs are best suited for those who believe they will be in a higher retirement tax bracket than their working years.
How to Choose the Best IRA Account
When deciding on the best IRA account, compare different investment choices, fees, customer service, and tools. Not all IRA accounts are created equal.
You may be better off with one IRA provider versus another depending on your experience, preferred investment strategies (passive vs. active), and risk tolerance.
User-friendliness is an essential factor in picking a compatible platform. Before joining, carefully observe the performance history, customer support reputation, and platform trustworthiness.
FAQs About IRA Accounts
What is an IRA, and how does it work?
IRA accounts are tax-advantaged retirement savings vehicles for people to contribute pre-tax or after-tax dollars toward their golden years. You can open a traditional or Roth IRA at any age, but you won't be able to withdraw penalty-free until you're at least 59 1/2.
Are IRA accounts worth it?
IRA accounts are worth it for most individuals with an annual income, especially people who don't have access to a workplace retirement plan like a 401(k) or pension plan. IRAs offer you great tax advantage and compound growth to boost retirement savings down the line.
What are the disadvantages of a traditional IRA?
The contribution limits for traditional IRAs can be low. Some employer-sponsored retirement plans can reduce or eliminate someone's IRA contributions. If you withdraw from your account before you're 59 1/2, you'll not only have to pay taxes on that amount, but you'll also have to pay a 10% penalty fee.
Why You Should Trust Us: Our Expert Panel on The Best IRA Accounts
We interviewed the following three investing and retirement experts to see what they had to say about traditional IRA accounts:
- Lazetta Rainey Braxton, MBA, CFP, co-founder and co-CEO at 2050 Wealth Partners
- Brian Fry, CFP, founder at Safe Landing Financial
- Charlotte Geletka, CFP, CRPC, managing partner at Silver Penny Financial Planning
Here's what they had to say about traditional IRA accounts. (Some text may be lightly edited for clarity.)
What are the advantages and disadvantages of opening a traditional IRA account?
Lazetta Rainey Braxton:
"Contributions to the traditional IRA are not considered a part of the taxable income for the year that that contribution was made to that traditional IRA.
"As you allow that traditional IRA to grow, you're going to have both tax-deferred contributions and tax-deferred growth and earnings. So when it is time for you to retire and take out those funds, it will be subject to ordinary income tax rates, based on your income during retirement."
Brian Fry:
"A traditional IRA generally offers better flexibility, freedom, and transparency than a 401(k). If you're under income phaseout limits, then there is a tax-deduction for IRA contributions.
"If you're above income phaseout limits, there are still planning considerations for IRA contributions, for example an advanced planning strategy such as a backdoor Roth IRA.
"A disadvantage is that there are no company match opportunities for a traditional IRA. Traditional IRAs also have hefty penalties for withdrawing funds before age of retirement."
Charlotte Geletka:
"A significant advantage of opening an IRA includes an above-the-line tax deduction if you are within the IRS income limitations for 2021 (ask your tax professional or financial advisor to double-check based on your income). The IRS website also has good guidance on IRAs. In a traditional IRA, the money grows tax-deferred. This is great for long-term growth.
"However, you will pay taxes on the money when it comes out. Also keep in mind that an IRA is what I like to call a "pay now, play later" plan. What I mean by that is that once the money goes into an IRA you will not be able to take the money out until you reach the age of 59 and a half."
Who should consider opening a traditional IRA?
Lazetta Rainey Braxton:
"[If] you want to keep your tax brackets low, a lot of people go traditional because the contributions — at the time you're earning it and making those contributions — are in fact reducing your taxable income."
Brian Fry:
"If uncovered by an employer retirement account, a traditional IRA can be a good fit regardless of income."
Charlotte Geletka:
"A traditional IRA is a great option if you do not have a retirement plan through your employer or if you are self-employed. You must have earned income to contribute each year."
What makes a traditional IRA account good or not good?
Lazetta Rainey Braxton:
"If you are age 50 or older, you are also eligible for the catch-up provision, which is also allowed for a [Roth] IRA as well as an employer-based plan. But the important fact to know about a traditional IRA versus an employer's plan is that traditional IRAs, in terms of its deductibility, aren't based on your adjusted gross income.
"Note that the catch-up provision allows you to contribute an additional $1,000 for IRAs if you're 50 or older. For employer-sponsored retirement plans, you can contribute an additional $7,500 if you're 50 or older.
"And since there is a cap on your income that relates to deductibility, it might make it less attractive as well because you might not just be eligible to make a deductible contribution."
Brian Fry:
"A traditional IRA is good in providing tax advantages. Unlike a brokerage account, investors are not taxed on capital gains. There can be a deduction for contributions. Investments grow tax-deferred until distributions are made.
There are several reasons a traditional IRA could be considered a bad account type. Investors are taxed on withdrawals, which are usually much larger than initial contributions. Tax rates can be potentially higher for investors during retirement."
Charlotte Geletka:
"A traditional IRA is great for retirement savings, tax savings and investing. However, you are just pushing the tax liability down the road since you are required to pay income taxes on distributions.
"The good news is that you are allowed to let the money grow tax-deferred until you begin to take distributions. You may begin at age 59.5 but you must begin by age 72."
Is there any other advice you'd offer someone who's considering opening a traditional IRA?
Lazetta Rainey Braxton:
"Know of all your options related to investments that can help support you in retirement. Think about whether you want to pay taxes now or later. With the traditional IRA, you would be paying taxes later."
Brian Fry:
"Don't open a traditional IRA or rollover your 401(k) without considering all of your options. If you're unsure, make sure to put in the research or ask a financial professional that serves as a fiduciary to have confidence in how to best move forward."
Charlotte Geletka:
"The investments inside an IRA are chosen by the account owner. This makes the options almost endless. Also keep in mind it is designed for you to save money to be used in retirement, so do not put money in an IRA that you might need in the short term. This is not a good place for your emergency fund."
Why You Should Trust Us: How We Reviewed The Best IRA Accounts
We reviewed and compared over a dozen IRA accounts using Business Insider methodology for reviewing investment platforms to determine the top brokerages and robo-advisors with strong retirement account options.
We also cross-referenced our list with popular comparison sites like NerdWallet and Investopedia to ensure we didn't miss anything.
