IRA Promotions, Bonuses and Incentives to Open IRA Account in 2020


List of IRA promotion codes, incentives, and cash offers for new investors opening IRA account or for IRA rollover at online brokerage firm. Current IRA bonus deals on traditional, ROTH, SEP, SIMPLE retirement accounts: cash, free trades, and account transfer specials.





IRA Promotion Offers


Competition among discount brokerages is intense, so companies frequently offer IRA promotions to open new retirement accounts or transfer an account from a competitor. Each IRA incentive discussed below applies to all Individual Retirement Accounts (IRAs) including traditional, Roth, SEP, SIMPLE, and 401k Rollover IRAs unless otherwise noted.


Ally Invest


Ally Invest will reimburse another firm's transfer fee, up to $150, when a client moves an account worth at least $2,500. There is no promo code required for this IRA offer. The special only refunds transfer fees. It does not cover closeout or termination charges.

Ally Invest also gives up to $3,500 cash bonus. The exact amount depends on the size of deposit. The breakpoints are: $10k - $24.9k earns $50; $25k - $99.9k earns $100; $100k - $249.9k earns $300; $250k - $499.9k earns $600; $2 MM earns $3,500.





E*Trade


E*Trade offers a variation on the TD Ameritrade/Ally Invest IRA promotional model.





IRA cash bonuses are offered for larger initial deposits. The breakpoints are: $25,000+ earns $200; $100,000+ earns $300; $250,000+ earns $600; $500,000+ earns $1,200; $1,000,000+ earns $2,500.





Brokerage Companies IRA Fees


Brokerage Broker
Rating
IRA
Inactivity Fees
IRA
Annual Fee
IRA
Closing Fee
Ally Invest
Ally Invest rating

$0 $0 $50
TD Ameritrade
TD Ameritrade rating

$0 $0 $0
Charles Schwab
Charles Schwab rating

$0 $0 $0
Chase
Chase Brokerage Rating

$0 $0 $75
Etrade
Etrade rating

$0 $0 $0
Fidelity
Fidelity Investments rating

$0 $0 $50
Firstrade
Firstrade rating

$0 $0 $50
Interactive Brokers
Interactive Brokers rating

$3601 $30 $0
Muriel Siebert
Muriel Siebert rating

$551 $301 $50
M1 Finance
M1  rating

$0 $0 $100
Merrill Edge
Merrill Edge rating

$0 $0 $75
Robinhood
Robinhood Trading rating

na na na
TastyWorks
TastyWorks rating

$0 $0 $0
Tradestation
Tradestation rating

$0 $0 $0
Vanguard
Vanguard rating

$201 $0 $0
WellsTrade
WeBull rating

na na na
WellsTrade
Wellstrade rating

$601 $30 $95
ZacksTrade
ZacksTrade rating

$0 $0 $0

1 - fees charged in some cases; see broker reviews for details.


Companies IRA Fees Explained


Individual Retirement Accounts often have various fees associated with them. Different brokerage houses assess different amounts for various activities in an IRA. It's important to know these charges before opening a retirement account, so let's take a look at some of the more common IRA fees and who assesses them.


IRA Setup Fee


This fee is for creating a brokerage account. Few companies now charge it - mostly it's online brokers for active traders.


TD Ameritrade ROTH IRA


IRA Closeout Fee


Sometimes brokers charge a fee to close an account. In particular, closing an IRA often comes with a charge of some amount. Although this fee isn't frequently publicized by brokers, many of them do assess the fee. In fact, sometimes a retirement account might be advertised as having no fees, but will nevertheless have a closeout fee. This advertising simply means that the account has no on-going fees to maintain. But once you close the IRA, you see your first fee.

Many well-known brokers have this fee. Fidelity charges $50, and so does Firstrade. OptionsHouse clients are assessed $60 to close a retirement account. Merrill Edge customers pay $49.95 to close an IRA, while WellsTrade clients are charged a very steep $95. On the other hand, TD Ameritrade, Schwab, and Vanguard charge nothing to close an IRA.


IRA Transfer Fee


Many brokerage houses also assess a charge to transfer an IRA to another firm. Capital One Investing, for example, charges $75 to move a full account to another broker, as does OptionsHouse. Merrill Edge customers pay $49.95, although the fee is not in addition to the closeout fee. Some brokers, however, do charge both fees. Ally Invest, for instance, assesses both a $50 closeout fee and a $50 transfer fee for moving an IRA to another financial institution. On the other end of the spectrum is Interactive Brokers, which charges nothing to transfer an account.


IRA Annual Fee


Although less common today, some financial companies do still charge an annual IRA fee. This charge is assessed once per year just for having the retirement account open with the firm. Vanguard charges a $20 annual fee for an IRA, although customers can avoid the charge by signing up for electronic delivery of account documents.

A WellsTrade IRA carries a $25 annual fee. The broker waives the charge for accounts with balances above $5,000. Wells Fargo Bank customers with a premier relationship with the financial institution also have the fee waived.


Ally Invest IRA Review


IRA Inactivity Fee


Some brokers want to earn a minimum amount of commissions from activity in an IRA, so they have an inactivity fee. Brokerage firms must make money off an account somehow, and this fee is one way they attempt to do so.


Fees for Early Withdrawals


Under IRS regulations, withdrawals cannot be made from an IRA until the age of 59½. Taking money out of an IRA before this age will incur IRS-imposed penalties, although Uncle Sam does provide some exceptions. However, some brokers might impose a separate fee for making a withdrawal from a retirement account before 59½. E*Trade does just this. Each withdrawal from an IRA before 59½ costs $25 at the firm. This charge is in addition to anything the government charges.


Fees for Paper Statements


As more brokerage firms move towards a lower-cost model, some of them are cutting costs wherever they can. Eliminating hard-copy communications is one way financial institutions are able to reduce overhead. Several financial companies now charge for mailing out paper statements and other documents. Merrill Edge, for example, charges $5 for every paper statement that it mails and $3 for each trade confirmation. TD Ameritrade offers free paper statements for accounts above $10,000, while Vanguard requires a higher $50,000. Fidelity, by comparison, offers paper statements free for all clients.


Fees for Excess Contributions


Under government regulations, the maximum annual contribution for an IRA is either $5,500 or $6,500, depending on age and filing status. Sometimes retirement savers make a mistake and contribute too much to an IRA. When this happens, they must withdraw the excess amount. A broker can charge for this, and E*Trade does. The firm charges $25 for making this type of withdraw.


IRA Recharacterization Fee


An IRA recharacterization occurs when a Roth conversion is converted back to a Traditional account, or whenever a contribution needs to be changed from a Roth account to a Traditional IRA. E*Trade customers must pay $25 for each occurrence.


Companies IRA Fees Recap


All brokers have fees in order to make a profit, which is their ultimate goal. But the brokerage industry is currently very competitive, so many good deals can be found. Be sure you know what specific fees a particular company charges before opening an IRA with the firm. If you do your homework, you may find an unbeatable deal.


Disclaimer


Any bank and brokerage IRA account promotion can change without notice. Each retirement account offer has fine print, therefore investors should thoroughly read and understand it before using any IRA incentive.