IRAs Offered: Traditional IRA, Roth IRA, Rollover IRA, SEP IRA, SIMPLE IRA, Individual 401k (for small business)
IRA Setup Fee: $0
IRA Annual Fee: $0
IRA Termination Fee: $0
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 $6.95 charge for trading ETF's and stocks. Traders can
use a live broker to complete a trade over the phone.
The list of all TD Ameritrade fees and charges is located here.
TD Ameritrade's new customer promotion offer – Trade free for 60 days + get up to $600.
– allows investors to create
portfolio without paying any broker commissions.
Mutual Funds
The broker's commissions can be completely avoided by investing in NTF (no transaction fee) 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.
This top IRA company also offers more than 100 exchange-traded funds (ETF's) 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.
IRA Calculators
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 The calculator specifies the minimum amount that must be withdrawn from the account, and when the withdrawal must occur.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.
IRA Videos
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.
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 one of the best IRA companies for retirement planning in 2017.
Full Review
Read detailed TD Ameritrade review.
TD Ameritrade IRA Promotion
Open TD Ameritrade Account
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IRAs Offered: Traditional IRA, Roth IRA, OneStop Rollover IRA, Simple IRA, SEP IRA, Beneficiary IRA, Complete IRA, and Minor IRA
IRA Setup Fee: $0
IRA Annual Fee: $0
IRA Termination Fee: $0
IRA Fees and Minimums
There are no annual, inactivity, setup, or low-balance fees at E*Trade. For retirement accounts, the broker does not impose any minimum opening deposit. If there
are no securities in an IRA when it's closed, E*Trade charges no fee.
Some specific activities will incur fees in an IRA, however. For example, making a withdrawal before 59½ costs $25. Depositing a contribution above IRS guidelines
also incurs a $25 levy. If a Roth conversion is changed back to a Traditional, E*Trade will charge another $25. Paper statements usually cost $2, but for retirement
accounts the broker waives the fee.
Stock and ETF trades in an IRA now cost $6.95, and active traders receive a $2 discount. Using a live representative over the phone to submit an order tacks on an extra $25.
Retirement Tools and Resources
E*Trade has a good educational section that pensioners should take notice of. There are many articles and videos that cover a wide range of topics, such as how to convert an employer plan to an IRA, how to prioritize expenses during retirement, myths about Social Security, and much more.
There's also a good selection of calculators on the E*Trade website to help investors better plan for life after work. These resources include a small business plan selector tool, a Roth IRA conversion calculator, and a inherited IRA tool. These materials guide users step-by-step in making important decisions about what specific accounts to open.
Mutual and Exchange-Traded Funds
The E*Trade mutual fund screener produces 9,078 products that are open to new investors. Of these, 4,398 are no-load, no-transaction-fee securities. Some of the broker's funds are target-date products, which are designed for pensioners.
The broker also offers over 100 ETF's that are free to trade. Many of these come with low expense ratios and investment strategies that are ideal for retirement savers. However, E*Trade does impose a $15.99 short-term redemption fee if any of these funds are sold less than a month after purchase.
Comparison
There is a large selection of IRA's at E*Trade compared to the offerings of other firms. Firstrade, for example, only provides five IRA's versus E*Trade's ten. Although E*Trade does
have some good educational resources, the firm seems to have less than Fidelity and TD Ameritrade.
E*Trade has fewer mutual funds than Scottrade and WellsTrade, but more funds that are commission-free.
Not imposing an annual IRA fee is nice, but E*Trade's multiple $25 levies are rather excessive. TD Ameritrade, by contrast, has none.
Summary
E*Trade has a good IRA lineup, but watch out for activities that incur a fee. The broker's selection of commission-free funds would be particularly good for an IRA.
Full Review
Read detailed E*Trade review.
E*Trade IRA Promotion
Open Etrade Account
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TD Ameritrade
| Investments | Commissions |
|---|
| Stocks and ETFs | $6.95 |
| Stocks and ETFs broker assisted | $44.99 |
| Options | $6.95 + $0.75 per contract |
| No-load mutual funds | $49.99 |
| Treasuries at auction | $25 |
| All other bonds and CMOs, CDs | on a net yield basis |
| Futures | $2.25 per contract plus exchange & regulatory fees |
| Forex | Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix). There are no additional fees or charges. |
| Investments | stocks, mutual funds, options, ETFs, bonds, CDs, UITs, futures, and forex |
| TD Ameritrade minimum deposit to open account | $0 for cash account, $2,000 for margin account |
| Fees | TD Ameritrade fees |
| Promotion links | TD Ameritrade promotions
and TD Ameritrade referral
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E*Trade
| Product | Price |
|---|
| Stocks and ETFs | $6.95 ($4.95 if making 30+ trades per quarter) |
| Stocks and ETFs broker assisted | $34.99 |
| Options | $6.95 + $0.75 per contract ($4.95 + $0.50 if making 30+ trades per quarter) |
| Mutual funds | $19.99 |
| Futures contracts | $1.50 per contract, per side + fees |
| Fixed Income | markup or markdown and any transaction fee will be included in the price quoted |
| Bonds | $1 per bond (minimum $10, maximum $250) for online secondary market trades. Includes Agency bonds, Corporate bonds, Municipal bonds, Brokered CDs, Pass-thrus, CMOs, Asset Backed Securities. |
| Investments | stocks, bonds, mutual funds, futures, fixed income, options, ETFs |
| Etrade minimum deposit to open account | $500 for a non-retirement account, $0 for a retirement account, $2,000 for a margin account |
| Fees | Etrade fees |
| Promotion links |
Etrade promotions
and Etrade referral
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Above is the list of our best IRA companies in 2017. All of them offer free Traditional IRA, ROTH IRA, SEP IRA and SIMPLE IRA accounts
for individuals. There are no annual, maintenance, custodial, or setup fees associated with these top IRA accounts.
The overall best brokerage company for IRA for do-it-yourself investors is TD Ameritrade. There are no IRA fees at the broker: individual retirement account setup,
inactivity, or maintenance fees. The firm offers low mutual funds commissions, over 2,000 mutual funds commission-free, investment research amenities,
and rich selection of investment products.
The best brokerage firm for IRA for beginners is E*Trade: the broker offers very good customer service, security of one of the largest
U.S. brokerage houses, and lots of free trading tools and services.
Another top rated company for IRA not mentioned above is Ally Invest. This is the cheapest
broker among our best IRA firms, so it's naturally very attractive option for the bargain-seeking customers. Ally Invest also offers a suit of valuable
services for free. Its online interface and trading tools, however, will appeal more to active and younger investors.
If you are only comfortable having a brokerage IRA account with large, well-known firm, then either TD Ameritrade or E*Trade
will work great for you.
You can open new tax exempt retirement account or set up to transfer your existing brokerage IRA or employer 401(K) account by clicking one of the links on this website and
following instructions. Make sure to read these brokerage's IRA account reviews before making final decision.
All best companies for IRA mentioned here are members of FINRA - they have to comply to strict government rules.
They are also SIPC insured - broker-dealer equivalent of banks FDIC insurance. It covers up to $500,000 per
customer, including up to $250,000 in cash.
Updated on 4/3/2017.
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