6 Best Places to Open a Roth IRA in 2024

If you’re saving for retirement, a Roth IRA could be just the tool to help you do it. Roth IRAs allow you to contribute post-tax dollars now and avoid paying any taxes during retirement. They’ve become increasingly popular in recent years, and there are more account options than ever.

Many Roth IRA providers offer benefits like low fees or account minimums, a large number of investments, and both self-directed and robo-advisory options. We’ve identified six of the best Roth IRAs on the market to help you choose the one that’s best for you.

How we evaluate products

To select the best places to open a Roth IRA, we researched top online brokers and considered factors such as account management fees, account minimums, reputation, and available investments. We did not include all brokerage accounts available. We chose a variety of brokerages to ensure nearly everyone can find one that works for them.

Best places to open a Roth IRA

• Fidelity
• Charles Schwab
• Vanguard
• SoFi
• Wealthfront
• M1

Compare the best Roth IRAs

	Best for	Account Minimums	Management Fees
Fidelity	Low fees and minimums	$0	$0 for self-directed investing 0.35% for Fidelity Go for balances over $25,000
Charles Schwab	Active traders	$0 for self-directed investing $5,000 for Schwab Intelligent Portfolios	$0 for self-directed investing and Schwab Intelligent Portfolios
Vanguard	Flexible investing options	$100 for Vanguard Digital Advisor $50,000 for Vanguard Personal Advisor $1,000 for Vanguard Target Retirement Fund or Vanguard STAR Fund $3,000 for Vanguard mutual funds	$0 for self-directed investing 0.15% advisor fee for Vanguard Digital Advisor 0.30% for Vanguard Personal Advisor
SoFi®	CFP guidance	$0	$01 <p class="">Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.<br></p>
Wealthfront	Robo-advisor services	$500	0.25% advisory fee
M1	Automated portfolios	$500	$3 monthly account fee with less than $10,000 invested

Fidelity

Broker Details

• Minimum investment: $0
• Account fees: $0 for self-directed investing, 0.35% for Fidelity Go

Fidelity has one of the most affordable and flexible Roth IRAs on the market. It has no account minimums, meaning you won’t need anything to open your account and can start investing with as little as $1.

Fidelity doesn’t charge any fees for self-directed investing. In fact, unlike other brokers, it even has a suite of mutual funds that have 0% expense ratios, helping you to keep 100% of your investment earnings in your account for retirement. I recently switched my own IRA over to Fidelity from a robo-advisor, and the no-fee funds were a huge selling point for me. However, there is a fee for Fidelity Go, its robo-advisor service, if your balance is $25,000 or more.

Fidelity is also one of the largest brokers on the market, and with that comes an impressive lineup of investment options, educational resources, and planning tools.

Visit Fidelity or learn more in our Fidelity review.

Charles Schwab

Broker Details

• Minimum investment: $0 for self-directed investing, $5,000 for Schwab Intelligent Portfolios
• Account fees: $0

Charles Schwab offers a popular Roth IRA with no account minimums and no fees. It’s one of the best options for active traders thanks to its robust analysis tools. Schwab acquired TD Ameritrade and, with that purchase, got the broker’s popular thinkorswim trading platform.

If you’d rather take a more hands-off approach, Schwab can help with that, too. It offers a wide variety of investment options for your self-directed portfolio, including a suite of target date funds. And if you’d prefer a robo-advisor, you can use Schwab Intelligent Portfolios, which has no advisor fees (though it does require a $5,000 minimum deposit).

Visit Charles Schwab or learn more in our Charles Schwab review.

Vanguard

Broker Details

• Minimum investment: $100 for Vanguard Digital Advisor, $50,000 for Vanguard Personal Advisor, $1,000 for Vanguard Target Retirement Fund for Vanguard STAR Fund, $3,000 for Vanguard mutual funds
• Account fees: $0 for self-directed investing, 0.15% advisory fee for Vanguard Digital Advisor, 0.30% for Vanguard Personal Advisor

Vanguard is a solid option if you want flexibility for your retirement account. It has multiple advisory options to choose from, including an entirely self-directed account, a robo-advisor, or something in between. Its Personal Advisor service is the perfect hybrid, offering both robo-advisor services and direct access to financial advisors.

However, it comes with a higher fee and steep investment minimum. The Personal Advisor service is probably something you’d use when you’re further along in your investing journey, especially if you have other financial planning concerns you want to speak to an advisor about.

Visit Vanguard.

SoFi

Broker Details

• Minimum investment: $0
• Account fees: $0

As with other investment platforms, SoFi lets you choose between an active or automated retirement account.² <p><b>INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED •&nbsp;</b><b>MAY LOSE VALUE</b></p> <p>Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(<a href="https://www.finra.org/">www.finra.org</a>)/SIPC(<a href="https://www.sipc.org/">www.sipc.org</a>).</p> You’ll get access to a range of investment options that don’t charge a commission.¹ <p class="">Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.<br></p> If you opt for an automated Roth IRA, SoFi will build a custom portfolio with a mix of stocks and bonds based on your risk tolerance.

You also have the option of speaking with one of SoFi’s certified financial planners to build a retirement savings strategy at no additional cost.³ <p>Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at <a href="https://www.adviserinfo.sec.gov">www.adviserinfo.sec.gov</a>. </p> Other brokerages require you to have a certain balance to talk with CFPs, so this is definitely a feature that sets SoFi apart.

Given SoFi’s low fees, active and automated investment options, and access to CFPs, it could be a good choice for beginners to investing.

If you’re looking for another option, Ally Invest also has the option of self-directed and robo-advisory trading, along with personalized advisor advice. However, Ally only offers personal advice to investors with at least $100,000 in their accounts, and it charges an advisory fee.

Visit SoFi® or learn more in our SoFi Invest® review.

Wealthfront

Broker Details

• Minimum investment: $500
• Account fees: 0.25% advisory fee

Wealthfront is a robo-advisor, meaning it builds you a curated investment portfolio based on your financial goals, risk tolerance, and other factors.⁶ <p class="">FinanceBuzz receives cash compensation from Wealthfront Advisers LLC (“Wealthfront Advisers”) for each new client that applies for a Wealthfront Automated Investing Account through our links. This creates an incentive that results in a material conflict of interest. FinanceBuzz is not a Wealthfront Advisers client, and this is a paid endorsement. More information is available via our links to Wealthfront Advisers.<br></p> It offers automatic rebalancing, meaning it can be a truly hands-off experience.

One thing that makes Wealthfront stand out from other robo-advisor services is its socially-responsible ETFs, which help you invest based on your values. It also offers exposure to crypto through cryptocurrency trusts, which I know some investors will appreciate.

Another difference between Wealthfront and other robo-advisors is that you do have some direct investing options with its stock collections.

If you like the idea of a robo-advisor but aren’t sure if Wealthfront is right for you, you can also consider Betterment. It has similar features, including low management fees and automatic rebalancing, but doesn’t have a minimum deposit like Wealthfront does.

Visit Wealthfront or learn more in our Wealthfront review.

M1

Broker Details

• Minimum investment: $500
• Account fees: $3 monthly account fee with less than $10,000 invested

M1 takes a unique approach to investing, using “pies” as a way to develop and organize portfolios.⁷ <p>See important disclosures <a href="https://www.m1finance.com/legal/disclosures/" target="_blank">here</a>.</p> <p> </p><ul> <li>All investing involves risk, including the risk of losing the money you invest.</li> <li><p>Brokerage products and&nbsp;services are offered by M1 Finance LLC, Member&nbsp;FINRA / SIPC, and a wholly owned subsidiary of M1&nbsp;Holdings, Inc.</p></li> </ul> <p></p> Put together your own pie or use one of its curated pies based on various investing styles and goals. Once you’ve put together your investing pie, all of your contributions will be automatically invested based on those ratios.

Not only does M1 automatically invest your contributions based on your settings, but it can also automatically rebalance your portfolio to get you closer to your target ratio.

Visit M1 or learn more in our M1 Finance review⁸ <p>The opinions expressed are solely those of the authors and do not reflect the views of M1. They are for informational purposes only and are not a recommendation of an investment strategy or to buy or sell any security in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Prior to making any investment decision, you are encouraged to consult your personal investment, legal, and tax advisors.</p> .

What is a Roth IRA?

A Roth individual retirement account, or IRA, is a tax-advantaged retirement savings account. When you open a Roth IRA, you contribute post-tax dollars and typically don’t have to pay income taxes on your qualified withdrawals in retirement. This means you don’t take a tax deduction when you contribute to the IRA. This structure is the opposite of a traditional IRA, which has you contribute pre-tax dollars and pay taxes on withdrawals later in life.

Roth IRAs are also unique because they don’t typically need to take required minimum distributions in retirement. If you have other sources of income, you could even leave your Roth IRA savings untouched, perhaps to pass down to your heirs. What’s more, you can withdraw your contributions at any time without penalty, because you already paid taxes on the amount.

However, you’ll have to wait until you’re 59 1/2 and have held the account for at least five years before you can start taking tax-free withdrawals of your earnings. If you withdraw your earnings early, you could be subject to an early withdrawal penalty.

Because Roth IRAs have you pay taxes upfront, they could be a good option for investors who expect to have a higher tax rate in the future than they do now.

Who can contribute to a Roth IRA?

Although anyone can contribute to a traditional IRA, Roth IRAs have eligibility requirements.

You’re not allowed to contribute to a Roth IRA if:

• You’re married filing jointly and have a modified adjusted gross income (MAGI) of $246,000 or more
• You’re single and have an MAGI of $165,000 or more
• You’re married filing separately, lived with your spouse during the year, and have a MAGI of $10,000 or more

If you exceed these income limits and still want to access the benefits of a Roth IRA, you might be able to do a Roth IRA conversion, also known as a backdoor Roth IRA. A Roth IRA conversion allows you to contribute money to a traditional IRA and then convert it into a Roth. These conversions do have tax consequences, however.

What are the Roth IRA contribution limits?

For the 2024 tax year, you can contribute up to $7,000 for the year to a Roth IRA. If you’re 50 or older, you can also make an additional catch-up contribution of $1,000.

For the 2025 tax year, you can contribute up to $7,000 for the year to a Roth IRA. If you’re 50 or older, you can also make an additional catch-up contribution of $1,000.

Tips for choosing a Roth IRA provider

There are quite a few options when it comes to choosing a Roth IRA provider, so you want to find the trading platform that best meets your needs. Here are a few factors to consider when choosing where to open your Roth IRA account.

• Customer support and resources: The best Roth IRA providers offer helpful and accessible customer support and a hub of educational resources you can use to educate yourself on retirement and investing money.
• Account minimums: If you want to start small, look for a Roth IRA provider with no minimum deposit requirement.
• Access to a financial advisor or robo-advisor: This may be helpful if you want some assistance managing your portfolio, though it’s worth noting that these services typically come with higher fees than self-directed accounts.
• Investment options: Some providers offer a greater range of financial products than others, though most let you invest in ETFs, mutual funds, index funds, and stocks.
• Fees/expense ratios: Keep an eye out for pricing. Trading fees, account fees, management fees, and other costs could cut into your earnings.

FAQs

Bottom line

Saving for retirement takes time, so the earlier you start, the better off you’ll be. Although investing always involves some risk, starting early could help you weather the ups and downs of the market. Plus, you’ll get to enjoy the power of compound interest over time.

If you’re new to investing, take some time to learn how to invest in stocks and consider your retirement goals. And if you’d prefer not to cherry-pick individual investments, consider investing in an index fund that tracks an established stock market index, such as the S&P 500 or the Dow Jones.