Many people use individual retirement accounts, or IRAs, to save for retirement because they're not tied to your workplace and offer unique tax benefits.
CNBC Select has named the top IRAs in a variety of categories, including for low fees, new investors and hands-off investing.
We limited our picks to accounts that offer a variety of investment opportunities, have no minimum deposit requirement and provide robust educational resources for all kinds of investors. (See our methodology for more on how we made our picks.)
Best for experienced investors: Vanguard
Who's this for: Vanguard is a top choice for investment pros, with no online trading commissions for stocks and ETFs and the largest selection of mutual funds in the industry. Most Vanguard funds have initial investment minimums of between $1,000 to $3,000, making them better suited for experienced investors.
Standout benefits: Fees for Vanguard's robo-advisor are reduced by the underlying costs of your investments, like the expense ratios of the funds in your portfolio. That means the gross advisory fee is only 0.20% for Vanguard Brokerage Accounts, including a net advisory fee of approximately 0.15%.
Vanguard
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Vanguard account, but minimum $1,000 deposit to invest in many retirement funds; robo-advisor Vanguard Digital Advisor® requires minimum $100 to enroll.
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock and ETF trades; zero transaction fees for over 3,000 mutual funds; $20 annual service fee for IRAs and brokerage accounts (waived with at least $50,000 in qualifying Vanguard assets or by opting into paperless statements); robo-advisor Vanguard Digital Advisor® charges approximately 0.15% net advisory fee annually (after fund revenue credits; 90-day fee waiver for new clients).
Bonus
None
Investment vehicles
Robo-advisor: Vanguard Digital Advisor® IRA: Vanguard Traditional, Roth, Rollover, Spousal and SEP IRAs Brokerage and trading: Vanguard Trading Other: Vanguard 529 Plan
Investment options
Stocks, bonds, mutual funds, CDs, ETFs and options
Educational resources
Retirement planning tools
Terms apply.
Pros
- No commission fees for stock and ETF trades
- No transaction fees for over 3,000 mutual funds
- One of the largest ETF and mutual fund offerings available, with an average expense ratio of 0.07%
- Robo-advisor Vanguard Digital Advisor® available with 90-day fee-free trial and approximately 0.15% net annual advisory fee after that
- Three portfolio strategies available through Digital Advisor: all-index, active/index, and ESG
- Vanguard Personal Advisor® offers access to a team of financial advisors starting at $50,000; dedicated CFP access available at $500,000 through Personal Advisor Select®
- Vanguard 529 Plan helps you save for college early on
- Excellent customer service with phone and email access Monday through Friday
Cons
- $20 annual service fee for IRAs and brokerage accounts (waived at $50,000 in qualifying assets or with paperless statements)
- Vanguard Digital Advisor® requires $100 minimum to enroll and charges approximately 0.15% net advisory fee after 90-day trial
- Digital Advisor portfolios invest only in Vanguard funds (no access to third-party ETFs)
- Basic trading platform compared to competitors; limited research and data tools
- No cash management account
Best for beginners: Fidelity
Who's this for: Fidelity has top-notch customer service, robust educational resources and customizable dashboards for investors who are just starting out. Fidelity offers fractional shares for thousands of stocks and ETFs starting at just $1, so beginners can get their feet wet without risking too much.
Standout benefits: Fidelity offers a healthy interest rate on uninvested cash and a number of index funds with no expense ratios.
Fidelity Investments
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance for robo-advisor to start investing.
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over, which includes access to unlimited 30-minute coaching calls with a Fidelity advisor and tax-loss harvesting on taxable accounts).
Bonus
None currently. Check Fidelity's promotions page for the latest offers here.
Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Terms apply.
Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Fidelity Go® portfolios use Fidelity Flex® mutual funds with zero expense ratios
- Human advisors manage day-to-day Fidelity Go® portfolio decisions
- Unlimited 30-minute coaching calls with a Fidelity advisor for accounts of $25,000 and over (at no extra cost)
- Tax-loss harvesting available on taxable Fidelity Go® accounts with $25,000 or more
- Abundant educational tools and resources with research from 20-plus independent providers
- 24/7 customer service
- Over 100 brick-and-mortar branches across the U.S. for face-to-face support
Cons
- Fidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and over
- Fidelity Go® invests only in Fidelity Flex® mutual funds (no third-party ETFs or individual securities available)
- No socially responsible or ESG portfolio option through Fidelity Go®
- Some of Fidelity's mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
Best for low fees: Charles Schwab
Who's this for: Charles Schwab has some of the lowest rates in the industry and offers commission-free stock options and ETFs. It also has an assortment of mutual funds with no transaction fees.
Standout benefits: Schwab's thinkorswim platform is a godsend for advanced traders, with hundreds of technical charts and indicators, robust graphics and a first-rate customer service team. Access is available seamlessly on your mobile, desktop and web-based interfaces.
Charles Schwab
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
Bonus
None
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Extensive retirement planning tools
Terms apply.
Pros
- $0 minimum deposit for active investing
- No commission fees for stock and ETF trades and no transaction fees for over 4,000 mutual funds
- Offers extensive retirement planning tools
- Users can get on-demand advice from a professional advisor/Schwab expert
- Robo-advisor Schwab Intelligent Portfolios® available as a no-fee automated service option (with Premium version available for a fee)
- Award-winning thinkorswim® trading platforms and all their cutting-edge tools are now available at Schwab.
- 24/7 customer support access by phone or chat
- Charles Schwab offers over 300 brick-and-mortar branches across the U.S. for in-person support
Cons
- Specific transactions may require commission fee
- Robo-advisor Schwab Intelligent Portfolios Premium charges a one-time planning fee of $300, then a $30 per month advisory fee. For that price, you get unlimited 1:1 guidance from a CFP, interactive planning tools, plus a personalized roadmap for reaching your goals
Best for hands-off investors: Betterment
Who's this for: Betterment is a great option if you want a robo-investor to the heavy lifting. With just a $10 minimum investment, Betterment Digital provides automated rebalancing and portfolio management.
Standout benefits: Betterment offers socially responsible investing (SRI) portfolios that support companies with social justice goals, ethical labor practices, lower carbon emissions and eco-friendly projects.
Betterment
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. For example, Betterment doesn't require clients to maintain a minimum investment account balance, but there is a ACH deposit minimum of $10. Premium Investing requires a $100,000 minimum balance.
Fees
Fees may vary depending on the investment vehicle selected, account balances, etc. Base price is $5/month for investing accounts; automatically switches to 0.25% annually once you reach $24,000 in total balance or set up $200/month in recurring deposits. Premium plan is 0.65% annually.
Investment vehicles
Robo-advisor: Betterment Digital Investing IRA: Betterment Traditional, Roth and SEP IRAs 401(k): Betterment 401(k) for employers
Investment options
Stocks, bonds, ETFs and cash
Educational resources
Betterment's resources hub offers expert-written guides on investing basics, retirement planning and personal finance that are designed to help investors at every level make more informed decisions.
Terms apply. Does not apply to crypto asset portfolios.
Pros
- No trade or transfer fees
- Automated investing with portfolios built around your financial goals, timeline and risk tolerance
- Assign specific goals to each portfolio and invest using different strategies
- Quick and easy account setup with the ability to sync external retirement accounts
- Advanced features include automatic rebalancing, tax-loss harvesting and socially responsible investing
- Premium plan users ($100,000 minimum) get unlimited access to certified financial planners (CFPs)
Cons
- $5/month fee for investing accounts (switches to 0.25% annually once you hit $200/month in recurring deposits or $24,000 in total balance)
- Premium plan requires a $100,000 minimum balance
Best for hands-on investors: E-Trade
Who's this for: Infrequent investors pay more for options contracts with E-Trade, so it's a better fit for frequent, hands-on traders. Seasoned investors can use the Power E-Trade investing app to access a market dashboard and technical charts.
Standout benefits: A subsidiary of Morgan Stanley, E-Trade has thousands of no-load, no-transaction-fee mutual funds.
E*TRADE
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open an E*TRADE brokerage account; minimum $500 deposit to invest in robo-advisor platform Core Portfolios.
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF and options trades; zero transaction fees for over 4,400 mutual funds; robo-advisor Core Portfolios charges 0.30% annual advisory fee
Investment vehicles
Robo-advisor: E*TRADE Core Portfolios IRA: E*TRADE Traditional, Roth, Rollover, Beneficiary, SEP and SIMPLE IRAs, IRA for Minors and E*TRADE Complete™ IRA Brokerage and trading: E*TRADE Trading Other: E*TRADE Coverdell ESA (Education Savings Account), Custodial Account for minors and small business retirement plans
Investment options
Stocks, bonds, mutual funds, CDs, ETFs, options and futures
Educational resources
Educational library includes in-depth articles and videos for any type of investor; access to Morgan Stanley research and institutional-grade market insights following E*TRADE's acquisition.
Terms apply.
Pros
- No commission fees for stock, ETF and options trades
- No transaction fees for over 4,400 mutual funds
- Core Portfolios offers automated investing with a choice of standard, socially responsible (ESG), smart beta and tax-sensitive portfolio strategies
- Tax-loss harvesting available through Core Portfolios at no additional cost
- Backed by Morgan Stanley’s institutional research and wealth management resources
- E*TRADE Coverdell ESA helps you save for college early on
- Active traders receive volume discounts on options
- Free analyst research and investing tools
- Strong mobile platform with Power E*TRADE for advanced trading
Cons
- Core Portfolios requires $500 minimum to enroll and charges 0.30% annual advisory fee
- No access to certified financial planners through Core Portfolios
- No forex trading
- Website can be cumbersome to navigate
What is an IRA?
IRAs are tax-advantaged accounts that offer a range of investment opportunities, including stocks, bonds, mutual funds, CDs and ETFs. Unlike a 401(k) an IRA allows you to make investment selections on your own or with the guidance of your investment firm, bank, credit union or online broker.
There are several IRAs: Most workers can choose between a traditional or Roth IRA, while self-employed workers and small business owners can also opt for a Simplified Employee Pension (SEP) or Savings Incentive Match Plan for Employees (SIMPLE) IRA.
You can arrange for direct deposits from your paycheck or set up automatic contributions from your checking or savings account. There are typically no account-setup fees, but you'll likely have transaction and advisory fees, as well as fund expense ratio fees to cover operational costs.
How much you can contribute to an IRA and deduct from your taxes depends on your age, income, tax filing status and whether you have a workplace retirement plan.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Minimum initial purchase requirement of $10,000
Minimum account balance of $25,000
Account set-up fee of $50. Storage fees of $100 or $15, depending on storage type. Annual account administration fee of $125. Terms apply.
Minimum purchase requirement of $10,000
Minimum account balance of $10,000
Annual IRA fee of $75 for accounts valued at $100,000 or less, $125 for accounts valued at $100,001 or more
Storage fee varies with the depository but typically is a flat $100 annual storage fee in most cases
2026 IRA contribution limits
In 2026, the contribution limit for a traditional IRA is $7,500 for people under age 50 and $8,600 for those 50 or older.
There is no income limit for traditional IRAs, but how much you earn determines how much of your investments you can deduct from your taxes.
In addition, your contribution limit is based on the total amount deposited in both traditional and Roth IRAs.
2026 IRA deduction limits
Traditional IRAs don't have income restrictions, but there are limits on who can deduct contributions from their taxes.
2026 IRA deduction limit if you have a workplace retirement plan
| Filing status | Modified adjusted gross income | Deduction limit |
|---|---|---|
| Single | $81,000 or less | Full deduction |
| Between $81,000 and $91,000 | Partial deduction | |
| More than $91,000 | No deduction | |
| Married filing jointly | Less than $129,000 | Full deduction |
| Between $129,000 and $149,000 | Partial deduction | |
| More than $149,000 | No deduction | |
| Married filing separately | $10,000 or less | Partial deduction |
| More than $10,000 | No deduction |
2026 IRA deduction limit If you don't have a workplace retirement plan
| Filing Status | Modified adjusted gross income | Tax deduction |
|---|---|---|
| Single, head of household or surviving spouse | Any amount | Full deduction |
| Married filing jointly with neither spouse covered by a workplace plan | Any amount | Full deduction |
| Married filing jointly with one spouse covered by a workplace plan | $242,000 or less | Full deduction |
| Between $242,000 and $252,000 | Partial deduction | |
| More than $252,000 | No deduction | |
| Married filing separately with a spouse covered by workplace plan | $10,000 or less | Partial deduction |
| More than $10,000 | No deduction |
How do I choose an IRA?
When choosing an IRA, consider your financial goals, risk tolerance and timeline to retirement. If you're closer to your nonworking years, you'll want investments with less potential to lose money. A reputable brokerage firm or bank will help you assess the best investments for your situation.
Active investors should look at IRAs offered by online brokers, while those who are more hands-off should consider an IRA from a robo-advisor, which relies on algorithms to manage your portfolio for you.
For a more personal experience, consider IRAs offered by big brokerage firms like Charles Schwab, Fidelity Investments or Vanguard, which have access to personal advisors.
Traditional vs Roth IRA?
The big difference between traditional and Roth IRAs is when you pay taxes. With a traditional IRA, you contribute pre-tax dollars, which is better for your immediate cash flow but means you'll be paying taxes when you retire and are likely in a higher tax bracket.
You contribute after-tax dollars with a Roth IRA, so withdrawals are usually not taxed in retirement as long as your account has been open for five years. Roth IRAs also aren't subject to required minimum distributions (RMD), but high earners are typically ineligible.
Roth IRA limits for 2026
| Filing status | Modified gross adjusted income | Contribution limits |
|---|---|---|
| Single or head of household | Under $153,000. | $7,500 ($8,600 if over 50) |
| Between $153,000 and $168,000 | Reduced contribution | |
| $168,000 or more | Ineligible | |
| Married filing jointly or surviving spouse | Less than $242,000. | $7,500 ($8,600 if over 50) |
| Between $242,000 and $252,000 | Contribution is reduced. | |
| $252,000 or more | Ineligible | |
| Married filing separately | Less than $10,000 | Reduced contribution |
| $10,000 or more. | Ineligible |
While both types come with a 10% penalty if you withdraw funds before age 59 1/2, there are exceptions for Roth IRAs — including for first-time home purchases, college, medical expenses and financial hardship.
How much should I contribute to my IRA?
In 2026, the contribution limit for a traditional IRA is $7,500 a year or $625 a month for people under age 50. For those 50 and older, the cap is $8,600, or about $717 a month.
Contribute the maximum amount if you can. If you have other obligations, try setting 20% of your paycheck for retirement and other long-term saving and investment goals.
FAQs
What is an IRA account?
Unlike 401(k) plans, individual retirement accounts (IRAs) are tax-advantaged savings plans that are opened and managed by the investor and not an employer. IRAs are available to anyone 18 and older with a Social Security number and earned income.
How do you open an IRA?
To open an IRA, you need to have earned income. You 'll choose the bank, brokerage or other financial institution you want to work with, as well whether you want traditional, Roth or SEP IRA.
When opening the account, you'll have to provide basic information like name and Social Security number and decide whether you want funds deposited directly from your paycheck or transferred from another account.
What is a Roth IRA?
Contributions to Roth IRAs are taxed before they're deposited. That gives you less to invest but can be beneficial if you expect to be in a higher tax bracket when you retire.
Roth IRAs are not subject to required minimum distributions, but they do have income caps and higher earners are usually disqualified from opening one.
What is the annual contribution limit for a traditional IRA?
In 2026, the maximum annual contribution to a traditional IRA is $7,500 for people under 50 and $8,600 for those 50 and older.
Can you lose money in an IRA?
Yes, retirement accounts invest your money in stocks and bonds, so your balance will fluctuate with changes in the market. The good news is that IRAs are long-term investments, so short-term dips shouldn't affect you too much over the long haul.
If you make withdrawals before age 59 1/2, you may also be subject to a 10% penalty. But there are exceptions, including if the funds are for medical expenses, higher education, buying or building your first home, IRS obligations and qualifying financial hardships.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every IRA review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of retirement accounts. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine which traditional IRAs are the best, CNBC Select reviewed more than 30 accounts offered by banks, investment firms, online brokers and robo-advisors.
We compared each IRA based on the following features:
- Fees: We considered each IRA's fee structure, including commission trading fees and transaction fees.
- Minimum deposit: None of the IRA on our list have minimum deposit requirements.
- Bonuses: We weighed IRAs more heavily if they offered incentives for new account holders.
- Investment options: All of the IRAs on our list allow you to invest in stocks, bonds, mutual funds, CDs and ETFs. Most also offer options trading.
- Customer service: We weighed investment platforms more heavily if they excelled in usability and had useful mobile apps and extensive customer service teams.
- Digital presence: All of the companies on this list have a robust online presence, with calculators, dashboards, charts and resources to educate you about retirement accounts and investing.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, our picks for the best traditional IRAs are
- For experienced investors: Vanguard IRA
- For new investors: Fidelity Investments IRA
- For low fees: Charles Schwab IRA
- For hands-off investing: Betterment IRA
- For hands-on investing: E*TRADE IRA
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