TD Ameritrade IRA Overview
In addition to research tools and commission-free funds, TD Ameritrade also provides good services for Individual Retirement Accounts (IRA's). Throw in advanced trading technology at no cost, and this broker is a good choice for retirement savers.
TD Ameritrade IRA Account Types
TD Ameritrade offers several varieties of IRA’s. Investors can open a Traditional, Roth, Rollover, Minor, Minor Roth, SEP, or SIMPLE IRA. A Traditional IRA was created for savers who will be in a lower tax bracket in retirement, whereas the Roth is designed for investors who are in a lower tax bracket while working. The Rollover IRA is a retirement account that has been transferred from a previous employer's plan. The Minor IRA was created so that parents could create a retirement account for their children. Talk about starting early for retirement! The SEP IRA was created for sole proprietorships, partnerships, non-profits, self-employed persons, and corporate employers. A SIMPLE account is designed for small businesses with less than 100 workers.
TD Ameritrade has retirement consultants who are able to help clients transfer, rollover, or open a new IRA.
TD Ameritrade IRA Fees and Minimums
All brokerage accounts at TD Ameritrade, including retirement accounts, have no annual fee, no inactivity fee, and no low-balance fee. The broker does not have a minimum opening deposit requirement for any account.
After an IRA is opened, the firm’s standard brokerage commission schedule is in effect. This includes a $9.99 charge for trading ETF's and stocks. Traders can use a live broker to complete a trade over the phone. This service costs a somewhat uncomfortable $44.99.
The broker's above-average commissions can be avoided by investing in NTF funds. TD Ameritrade offers almost 2,000 mutual funds with no load and no transaction fee.
These funds include several investment strategies that will appeal to retirement savers, such as investment-grade bonds and S&P 500 funds. The broker offers in total
more than 11,000 mutual funds. Mutual funds that carry a transaction fee are $49.99 to buy, sell, and exchange. See TD Ameritrade mutual funds review.
TD Ameritrade also offers more than 100 exchange-traded funds that have no commissions. Many of these have low expense ratios and 4 or 5 stars from Morningstar. Some funds have investments tactics that retirement savers will be interested in, such as REIT funds and dividend-paying equity funds.
Investors at TD Ameritrade have access to some handy calculators. One helps investors figure if and when distributions from an IRA must be taken according to IRS regulations. The calculator specifies the minimum amount that must be withdrawn from the account, and when the withdrawal must occur.
Another calculator determines the advantages and disadvantages of a 401(k) rollover.
It is helpful to evaluate the possibility of converting a 401(k) plan to an IRA when starting a new job. The calculator displays numerically and graphically the results of rolling the balance over into a new 401(k), taking a lump sum distribution, or transitioning to a Traditional IRA.
IRA Selection Wizard
Another tool leads investors step-by-step in deciding whether to choose a Roth or Traditional IRA. Users input data such as age, tax filing status, and annual income. The wizard then recommends a retirement product based on the inputs, along with contribution limits for the tax year, based on IRS guidelines.
Roth Conversion Analyzer
The broker also provides a useful tool for retirement savers who already have a Traditional IRA and are interested in converting it to a Roth. The tool asks for a few pieces of information, such as IRA account balance, annual income, and date of birth. The analyzer then returns important information regarding the possible conversion, including the cost of the switch.
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TD Ameritrade has an extensive library of investment videos, some of which cover retirement topics, including IRA's. One video takes the viewer step-by-step through the 401(k) conversion calculator. Another discusses the consequences of making withdrawals from retirement accounts.
Investment Advice from Amerivest
TD Ameritrade offers investment advice for a fee through its affiliate Amerivest. Clients can receive one-time financial advice from an investment professional. Also available is on-going portfolio management. This service includes no commissions on trades. It's a good option for retirees who would prefer to trust the management of their portfolios to investment professionals.
Compared to Schwab and Merrill Edge, the TD Ameritrade website has more information on retirement planning. The broker's zero opening deposit requirement is also lower than Schwab's $1,000 minimum. TD Ameritrade also provides more commission-free mutual and exchange-traded funds than many other brokers, such as Firstrade and Fidelity.
Investors who open and fund a new TD Ameritrade IRA with $3,000 or more will receive free trades for 2 months. A deposit of at least $25,000 will also earn a $100 bonus. It's a great opportunity
to open a retirement account and use some of the broker's trading tools. Link:
Trade free for 60 days + get up to $600.
TD Ameritrade IRA Review Summary
Investors saving for retirement have a lot of resources at TD Ameritrade. Add in 24/7 customer service, more than 100 local branches, and professional portfolio management, and this broker is hard to beat for retirement planning.
TD Ameritrade IRA
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