Roth IRA account It is a personal retirement account based on personal voluntary investment.It is similar to the traditional Ira.Roth Ira is also an investment account for monthly deposits for financial investment and obtaining income for retirement life.Roth IRA is characterized by the capital principal of the deposit (Contributions) needs to pay personal income tax.After 59.5 years old and 5 years after opening, you can freely withdraw the principal and investment income (Earnings) without paying taxes.
This article will focus on the most suitable Roth IRA account, many American merchant Can provide Roth IRA services.Regarding the introduction of traditional IRA accounts and the similarities between traditional IRA and Roth IRA, please see the article we write “Recommended by Traditional IRA Accounts” Essence
Directory of this article
- Do you choose Roth IRA or an IRA account?
- Does Roth IRA have income restrictions?
- Roth IRA account recommendation
- More investment strategies
Do you choose Roth IRA or an IRA account?
we are at “Recommended by Traditional IRA Accounts” In a article, the difference between Roth Ira and traditional IRA is introduced.The main difference is the following two points:
- The method of paying taxes is different: For traditional IRA, when depositing the principal every year, there is no need to pay taxes, but when withdrawal, the principal and income need to be collected at the same time; for the Roth IRA account, when the principal is deposited every year, the tax will be paid first first., But when withdrawing the withdrawal, the principal and income do not need to pay taxes;
- Different withdrawal restrictions: Traditional Ira 59.5 years can only withdraw money, withdrawal of 10%of the fines in advance, and pay taxes at the age of 72.After 72 years of age, for compulsory request to withdraw a certain amount of pension;After the investor is 59.5 years old and after opening an account for 5 years, he can take out the principal and investment income without any tax requirements.If you do not meet the condition and get the withdrawal in advance, the principal can be withdrawn at any time, but for the investment income part, 10%of the fines need to be charged and paid taxes.At the same time, the Roth IRA account has no compulsory withdrawal requirements.
Should I choose Roth Ira or the traditional IRA account?
- Suitable for people and opportunities to open Roth IRA: If you think that the tax rate after retirement will be higher than the current tax rate, then you should open Roth IRA, so that on the one hand, it can pay taxes at a low tax rate, and at the same time, it is not necessary to pay taxes and investment income when high tax rates.Generally speaking, young people who have just entered the workplace income have less taxes at this stage, and they can choose Roth Ira, so that the principal has enough time to invest in profitability before retirement, and no tax payment is required after retirement.
- Suitable for people and opportunities to open traditional IRA: If you think the tax rate after retirement will be lower, then you should open the traditional IRA so that you can avoid taxing when deposit, so you can deposit more money for investment profit.At the same timeThe tax rate is withdrawn.
Does Roth IRA have income restrictions?
With income restrictions, not anyone/family can use the Roth Ira account, which is different from the traditional IRA account.
For Roth IRA, if your/home income exceeds a certain amount, you cannot, or you cannot, or all the principal of depositing the maximum amount in the Roth Ira account.For specific income restrictions, please refer to IRS releases official data EssenceFor the data of 2020, we are listed below:
| Taxation status | Personal/Family Income AGI | The principal deposited every year |
|---|---|---|
| single | <$ 124,000 > & nbsp; $ 124,000, but <$ 139,000 > & nbsp; $ 139,000 |
The maximum amount can be stored *; Part of the amount; 0; |
| Husband and wife, joint report tax | <$ 196,000 > & nbsp; $ 196,000 but <$ 206,000 > & nbsp; $ 206,000 |
The highest amount can be stored; Part of the amount; 0; |
| Husband and wife, separate taxes | <$ 10,000 > & nbsp; $ 10,000 |
Part of the amount; 0; |
Roth IRA account recommendation
- The best overall performance Roth IRA account: Charles SCHWAB
- The Roth IRA account of the best human consultant: Merrill Edge
- Roth IRA account of the best investment research: Fidelity
- Best Intelligent Investment Counseling Roth IRA Account: Wealthfront
- The best Roth Ira account for the best transaction fee: M1 Finance
- Roth IRA account of the best investment tool: Betterment
- The best professional management Roth IRA account: Blooom
- The Roth IRA account that is most suitable for initial investors: Acorns
- The Roth IRA account that is most suitable for active investors: TD Ameritrade
- The Roth IRA account that is most suitable for independent investors: E*trade
We will compare the above ten Roth IRA accounts in detail:
1.Charles Schwab Roth IRA account
Charles Schwab Roth IRA account
Reasons
- The best overall performance Roth IRA account
Roth IRA account characteristics
- Minimum deposit: $ 0
- Account opening reward: none
- Account annual fee: $ 0
- Transaction fee: no online transaction commission, stock-free, ETF transaction commission , Optional transaction each contract 0.65 US dollars commissions
- Full account transfer fee: $ 50
Roth IRA account introduction
Charles Schwab’s Roth IRA account has the best overall performance, can provide excellent investment and teaching training for initial investors, provide high-quality investment tools for active traders, and have considerate customer service and low competitive lowSpeed transaction commission.
For investors who focus on cost, Charles Schwab’s Roth Ira provides very attractive trading costs to remove trading costs and minimum account balance requirements for general situations.The cost of each option contract of Roth Ira is $ 0.65, and it also provides a large number of stocks, ETFs and options transactions with a large number of transaction commissions.Therefore, you can enjoy a variety of commission-free investment transactions, thereby saving more money for further investment.If you are an investor of a common fund, you can choose the most suitable investment in more than 4,000 funds provided by Charles Schwab.In addition, Charles Schwab also gives investors a special equity, that is, providing intelligent investment advisory services without any management costs.
advantage
- The minimum balance requirements of the account without account
- Stocks, ETFs and more than 4,000 common funds have no transaction commissions
- Provide intelligent investment advisory services for free
shortcoming
- The cost of commissioned common fund transactions and agents auxiliary transactions is high
- High charges for hybrid investment services for intelligent investment advisory and human consultants
- Some common funds need to pay $ 76 commissions when purchasing
2.Merrill Edge Roth IRA account
Reasons
- Roth IRA account of the Best Human Consultant
Roth IRA account characteristics
- Minimum deposit: $ 0
- Account opening reward: maximum $ 600
- Account annual fee: $ 0
- Transaction costs: No online transaction commission, stock-free, ETF transaction commission, option transaction each contract 0.65 US dollars commissions
- Full account transfer fee: $ 49.95
Roth IRA account introduction
Merrill Edge’s Roth IRA account is very suitable for investors who want to manage their accounts or are seeking professional brokers.Investors can open a self-managed Roth IRA account, which is completely free and does not have the minimum account balance requirements.
In addition, the Roth IRA account also offers a reward of up to $ 600.Stocks, ETFs, and up to 2,700 free common funds with free transaction commissions.The cost of each contract is $ 0.65.For investors who need professional investment services, they can upgrade their accounts to help the human investment consultant obtained.At the same time, they only need to pay a small amount of fees and need to meet the minimum account balance requirements.Since Merrill Edge is a company owned by Bank of America, you can go to the BOA business hall around you to obtain face-to-face customer support.If you need personalized financial planning, Merrill Edge’s service team can also help you achieve this goal.
advantage
- No minimum account balance requirements
- Stocks, ETF-free transaction commissions
- The best bond and stock research resources in the industry
- 24/7 All-weather customer service
shortcoming
- Limited complicated options transactions
- Investors are frequently persuaded to hire manpower and financial consultants
3.Fidelity Roth IRA account
Reasons
- The best investment research Roth IRA account
Roth IRA account characteristics
- Minimum deposit: $ 0
- Account opening reward: none
- Account annual fee: $ 0
- Transaction costs: No online transaction commission, stock-free, ETF transaction commission, option transaction each contract 0.65 US dollars commissions
- Full account transfer fee: $ 0
Roth IRA account introduction
With its clear investment layout, 24/7 customer service, excellent research tools, competitive transaction commissions and low costs, it has become one of the best agents to open the Roth Ira account.
The Roth IRA account provided by Fidelity has no minimum balance requirements, and does not need to pay account management fees, providing various commission-free investment, including commission-free stocks, options and ETF transactions, and more than 3,400 common funds without transaction costs.Fidelity has top trading platforms and 24/7 customer services, and nearly 200 physical branches provide face-to-face investment services.The Roth IRA account provides a complete educational resources, which is very suitable for investors who have just begun contact with investment and hope to quickly master skills.At the same time, investment reports from 20 suppliers can help you choose investment portfolios and analyze investment income.
advantage
- Wide research tools and educational resources
- Commission-free stocks, ETF option transactions
- A large number of research reports and investment data
- Rich online help
- Having a physical branch
shortcoming
- Online trading platform is unstable
- The user’s user friendship of the trading system is not high
- The cost of consultation is higher than the average level
- Intelligent investment advisory service charges high
- High-risk investment products such as futures, foreign exchange and cryptocurrencies cannot
4.Wealthfront Roth IRA account
Reasons
- The best intelligent investment advisory Roth IRA account
Roth IRA account characteristics
- Minimum deposit: $ 500
- Account opening reward: none
- Account annual fee: 0.25%of the account balance, no management fee for $ 5,000 before the balance
- Transaction costs: No online transaction commission, free stock transaction commission, ETF transaction commission ratio between 0.07%and 0.16%, an option transaction each contract of $ 0.65
- Full account transfer fee: $ 0
Roth IRA account introduction
Wealthfront perfectly combines free investment management and diversified investment.In terms of management costs, the annual normal consultation fee of Wealthfront Roth Ira is 0.25%of the account balance, and at the same time provide special discounts for new investors, that is, within $ 5,000 in accounts, it is free to manage.For example, when your account balance is $ 15,000, youYou only need to pay an annual consultation fee of 0.25%($ 25) for the $ 10,000 of the $ 10,000.
The main advantage of the Roth Ira account is the diversification of investment.Wealthfront will invest in your assets in stocks and bonds like other intelligent investment advisors.However, real estate, natural resources (for example, natural gas and crude oil) and dividends into your investment portfolio, because when inflation is accelerated, the prices of these assets rose rapidly.Similarly, target planning and tracking are the highlights of Wealthfront Roth Ira.Smart investment tools will show all your assets and liabilities, so that you can quickly and intuitively view the progress of investment targets.When your life changes, such as changing new jobs, getting married, having children or buying a house, your Wealthfront investment plan will automatically make corresponding adjustments.If your current shortage of funds, the minimum balance required by Wealthfront may be an obstacle for you.
advantage
- Excellent financial planning
- Intelligent investment advisory assistance to achieve large funding goals
- The account management cost is 0.25%of the balance, and the first 5,000 US dollars are free management
- Diversified investment portfolio (including real estate, natural resources and dividends)
shortcoming
- Minimum balance requirements for $ 500 account
- No online consultation service
- Investment portfolio below 100,000 US dollars cannot set the risk level by yourself
- Some common funds are expensive
5.M1 Finance Roth IRA account
Reasons
- Best Roth IRA account for the best transaction fee
Roth IRA account characteristics
- Minimum deposit: $ 500
- Accounting Reward: Maximum $ 2500
- Account annual fee: $ 0
- Transaction costs: No online transaction commission, stock-free, ETF transaction commission, option transaction each contract 0.65 US dollars commissions
- Full account transfer fee: $ 100
Roth IRA account introduction
M1 Finance has the dual characteristics of intelligent investment advisory and traditional agent.It provides a simple investment platform that makes investment easier, and at the same time provides you with more options than standard intelligent investment advisors.
After opening the Roth IRA account, you can choose from a variety of preset diversified investment portfolios, or you can also invest in various ETFs or stocks to define your investment portfolio.After allocating investment, the system will automatically track your investment, so you don’t need to worry too much.The Roth Ira account provides a series of services.You do not need to pay any management fees and commissions, so you can maximize your retirement asset income.Due to the high degree of freedom of investment, opening the Roth IRA account at M1 Finance, high requirements for investors’ investment capabilities.The target customers are more experienced investors with traditional online brokerage business investment stocks and ETFs.
advantage
- There is no commission and management fee at all
- Stocks that allow trading separately
- A variety of investment portfolios, including 80 professional investment portfolios
- You can set the time deposit time for automatic investment
shortcoming
- Accounts are less than 20 US dollars, and accounts that do not conduct trading activities within 90 days need to be collected
- Do not provide human and financial advisory services
- Investment is limited to ETF and personal stocks, no common fund or fixed income option
6.Betterment Roth IRA account
Reasons
- Roth IRA account of the best investment tool
Roth IRA account characteristics
- Minimum deposit: $ 0
- Account opening reward: free management account for one year
- Account annual fee: open digital account for free, 0.25%annual fee; 100,000 US dollars open high-end accounts, 0.40%annual fee
- Transaction costs: No online transaction commission, free stock transaction commission, ETF transaction commission ratio between 0.07%and 0.17%, option trading each contract without commission
- Full account transfer fee: $ 0
Roth IRA account introduction
Betterment is an intelligent investment consultant (completing investment and management by robotic artificial intelligence), which can complete the responsible investment work, including choosing appropriate investment, decentralized investment portfolios and allocation funds.
Betterment’s Roth IRA account will create your investment portfolio and distribute it to about 12 different ETFs that represent the entire investment field.During the investment process, the return will be automatically balanced.All details in this process.To obtain these services, you only need to pay 0.25%of the account balance as the annual fee.If you need to get advanced services, you need a balance of $ 100,000 in your account and pay 0.4%of the annual fee, you can consult a financial planning team with investment experience without restriction.The Roth IRA account does not have the minimum account balance requirements.You only need to supply the account every month.
advantage
- The account settings are fast and simple, and the investment portfolio is completely transparent
- Easily change the risk and type of investment portfolio
- Investment portfolio includes low cost ETF
- Investors do not need to handle investment management details
shortcoming
- All investment plans need to pay annual fees
- 100%full-automatic investment process is not suitable for investors with self-management accounts
- Obtaining human and financial planning will charge $ 199 to 299
7.BLOOM Roth IRA account
Reasons
- The best professional management Roth IRA account
Roth IRA account characteristics
- Minimum deposit: $ 0
- Account opening reward: $ 15
- Account annual fee: $ 120
- Transaction expenses: No online transaction commission, stocks, ETF transaction commissions, and option transactions each contract commission depends on the charging standards of Vanguard, Charles Schwab or Fidelity, which is managed by Bloom.
- Full account transfer fee: $ 0
Roth IRA account introduction
BLOOM is a smart investment advisor specializing in the management of retirement planning.If you don’t have time to manage or don’t want to spend too much effort to come to your own Roth IRA account, then Bloom’s professional management model will be your preferred Roth IRA opening channel.Bloom is different from other securities trading companies in this article.It is not an investment platform.In fact, when you register your account, you will not even transfer funds to BLOOM.You keep it in the original account, and BLOOM will be managed directly from there.Under normal circumstances, the management of BLOOM Roth Ira is limited to the accounts opened by Vanguard, Charles Schwab or Fidelity.Given BLOOM’s special management model, it does not provide transactions for stocks, ETFs, options and other investment products in the usual sense, but only manages the costs incurred by other Roth IRA accounts and transactions on your behalf.BLOOM does not have the minimum account balance limit.Regardless of the amount of accounts, the management cost is $ 120 per year.If you pay the year in advance, the price will be reduced to $ 108, otherwise you will pay $ 30 a year each year.
advantage
- The minimum balance requirements of the account without account
- Free investment analysis
- Can obtain manpower and financial advisory service
- Suitable for investors with Roth Ira in Vanguard, Charles Schwab, Fidelity
shortcoming
- Limited risk tolerance
- When the account balance is small, the cost ratio is high
- Do not provide telephone services, only limited to mail and online consultation
8.ACORNS ROTH IRA account
Reasons
- The Roth IRA account for initial investors
Roth IRA account characteristics
- Minimum deposit: $ 0
- Account opening reward: $ 15
- Account annual fee: $ 1- $ 3 per month
- Transaction fee: no online transaction commission, no other transaction fee
- Full account transfer fee: $ 0
Roth IRA account introduction
Acorns Roth Ira is a micro savings account.Its target customers are initial investors without sufficient funds for large amounts of capital.Its investment method is more like a “deposit can” in the traditional sense.ACORNS uses an application connected to your bank account.Every time you spend money from the bank account, the procedure will withdraw the payment amount into even numbers and keep the difference for savings.The payment method seems to need to pay the excess amount each time.In fact, you don’t notice the process, and you have achieved the purpose of savings investment.For example, if you spend $ 7.55, ACORNS will charge $ 8, of which $ 7.55 is paid to the merchant, and the remaining $ 0.45 deposits in your holding account.ACORNS has no account balance requirements.When there is at least $ 5 in the account, Acorns will automatically put the income into the market, and it will use investment opportunities to re-balance your investment portfolio.The ACORNS investment platform is an intelligent investment consultant that will handle various investment choices and complex investment portfolios, so you do not need to handle trivial details of asset management.
advantage
- The minimum balance requirements of the account without account
- Passive savings through ordinary consumption
- Comprehensive management account
- Low management cost
shortcoming
- Not a special savings or investment platform
- Little investment portfolio
- Do not provide independent investment products
9.TD Ameritrade Roth IRA account
TD Ameritrade Roth IRA account
Reasons
- The Roth IRA account that is most suitable for active investors
Roth IRA account opening data
- Minimum deposit: $ 0
- Account opening reward: maximum $ 600
- Account annual fee: $ 0
- Transaction costs: No online transaction commission, stock-free, ETF transaction commission, option transaction each contract 0.65 US dollars commissions
- Full account transfer fee: $ 75
Roth IRA account introduction
TD Ameritrade is a well-known securities trading company in the industry.The Roth Ira provided by it is very attractive, including no minimum account balance requirements, non-commission online trading stocks, bonds, options, ETFs, and more than 4,100 kinds of non-transaction fees.TD Ameritrade provides good customer services with a variety of platforms.Initial investors and passive traders can use network or mobile trading platforms.Active investors are more suitable for using Thinkorswim.This trading platform can meet the needs of active investors.You can trade options, futures and foreign exchange investment products on this platform.You can obtain real-time help through built-in chat function.You can get third parties to obtain third parties.Research and educational resources and investment planning tools for investment.
The Roth IRA account of TD Ameritrade provides investment portfolios such as stocks, bonds, common funds, ETFs, options, and custody.It has more than 360 physical branches and provides real-time customer service of 24/7.
advantage
- No minimum account balance requirements
- Free stock, ETF and option transaction costs
- Provide more than 4,000 free common funds
- 24/7 customer service service
- Up to $ 600 account opening award
shortcoming
- At the end of 2020, it will be acquired by Charles SCHWAB
- Some common funds commissions are high
- Human consultant is high
10.E*Trade Roth IRA account
Reasons
- The Roth IRA account for independent investors
Roth IRA account opening data
- Minimum deposit: $ 0
- Account opening reward: maximum $ 600
- Account annual fee: $ 0
- Transaction costs: No online transaction commission, stock-free, ETF transaction commission, option transaction each contract 0.65 US dollars commissions
- Full account transfer fee: $ 75
Roth IRA account introduction
E*Trade has performed well in investment guidance and custody investment portfolios.It has the industry’s top trading platforms, especially options transactions.E*Trade is exempted from trading commissions for stocks and options, providing more than 250 commission-free ETFs and 4,400 common funds without transaction costs.
The Roth IRA account provides four intelligent investment options: the core investment portfolio of stocks and bonds; Blend Portfolios composed of ETFs and common funds; special investment portfolios composed of stocks, ETFs and common funds; fixed income portfolios.For any type of investor, E * Trade is a reliable choice.However, due to the reduction of options’ transaction costs, it has become very friendly to independent investors who frequently trades.
advantage
- The minimum balance requirements of the account without account
- Provide four intelligent investment options
- Non-transaction commission
- No account management annual fee
- A large number of commission-free ETFs and common funds
- Award of up to $ 600 account
- 24/7 customer service
shortcoming
- Refund, advance withdrawal, change account settings for $ 25
- Trading platform users are not friendly
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