Top 10 ROTH IRA ACCOUNTS

This article wil explain the tp 10 Roth IRA accounts.

An IRA is a means of investing in your future. An individual retirement account abbreviated as IRA is a retirement investment account, where your money is able to ” go and compound”. With an IRA, our profit on investment is based on the amount invested and the kind of investment you participate in.

There are four notable types of IRA, each with its distinct feature.

  • SIMPLE IRA
  • Traditional IRA
  • SEP IRA
  • Roth IRA ( which we would be focusing on in this article)

What Is a Roth IRA Account?

A Roth IRA account ( individual retirement account) is a type of retirement account that allows you to withdraw your contributions without tax(totally tax-free). It depicts a “pay taxes while not retired to avoid paying later” policy.

It is a savings option that allows you to contribute money after taxes have been deducted. Your investments can be enjoyed without tax later on.


 When making decisions especially financial decisions, it is important to weigh the pros and cons of that endeavor before following through with it. The following are some benefits and disadvantages of a Roth IRA account to take note of.

Read: How Roth IRA Taxes Work

PROS / ADVANTAGES OF A ROTH IRA

  • Reduced taxes: It is an undeniable fact that taxes take a lot out of people’s income. Averting or reducing the tax you end up paying, goes a long way In saving you some money that can be used for other things like housing, education, and so on. 
  • No maximum age requirement.
  • With a Roth IRA, there are no compulsory withdrawals, unlike the traditional IRAs where you need to start taking money out by April 1 of the year after you turn 72. 

CONS OF A ROTH IRA

  • No one wants to lose money, however negative market fluctuations, early withdrawal penalties, and several other reasons could cause you to lose money.
  • A Roth IRA has a strict contribution limitation. There are limits based on income.
  • Setting it up:  Your employer or any other person is not responsible for opening a Roth ira account for you. You are to set up your Roth IRA on your own as well as see to how the funding and contributions place. Also note that approving automatic bank contributions can make things easier.
  • You can not take a loan from a Roth IRA, unlike other accounts.

REQUIREMENTS TO OPEN A ROTH IRA ACCOUNT

There is no restriction to who can open a Roth IRA account however before you can successfully open up a Roth IRA account, two factors must be in place. 

  1. You must have a source of income, a stable source of income at that. 
  2. It’s one thing to have a source of income, it’s another thing for the source of income to be within a Roth IRA income limit. Roth IRAs have certain income limits for their customers. Your 2022 modified adjusted gross income must be $140,000 (single filers) or $208,000 (married filing jointly). If your modified AGI is greater than or equal to $140,000, you cannot contribute to a Roth IRA.

TOP 10 IRA ACCOUNTS


Now that you fully understand the pros and cons associated with an IRA account as well as the requirements to open one. You might want to see these carefully selected top 10 IRA accounts that are available for you to pick from.

RELATED:  What is an Investment Portfolio? | Overview, How it Works, and How to Build One


In no particular order, here’s a list of the top 10  IRA accounts. 


1. VANGUARD

If you are looking for a low-cost investment, you should probably consider vanguard IRA.

Vanguard is very convenient for buy-and-hold investors and retirement savers or people who are looking to roll over retirement savings from a workplace 401(k) plan to an IRA.

It has a substantial list of index funds and ETFs retirement savers can decide on, and it also proposes funds from other providers in extension to commission-free stocks, bonds, and other investments.

Vanguard also has various websites for several purposes. Its website attends to personal investors, institutional investors, financial professionals, and even international clients. 


If you are wondering if vanguard should be considered by you, these are the pros and cons to evaluate before concluding.

Read: WHAT IS ROTH IRA AND HOW DOES IT WORK?


 Pros of a vanguard Roth IRA

  • One of the best options for low-cost funds
  • Numerous retirement plan options and accounts
  • Commission-free stock, options, and ETF trades.

Cons of a vanguard Roth IRA

  • No crypto currencies
  • Basic trading platform only. Its active trading platform isn’t as vigorous as competitors
  • Limited research and data.

2. Fidelity 


 Another top Roth ira account to be considered is the fidelity IRA. Fidelity investment inc. as a whole is an American multinational financial services corporation based in Boston, Massachusetts.

It was founded in 1946 and was formerly known as Fidelity Management & Research or FMR. Fidelity investment inc. provides several financial and asset management services, including retirement services (some of which are their fidelity Roth ira service, traditional IRAs,  rollover IRAs, Roth IRAs for kids, and so on ).

Their Roth ira and other services are regulated by top-tier authorities like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The pros and cons of choosing a fidelity Roth ira are:

Pros

  • Low costs.
  • Trustworthiness and top-notch customer service.
  • IRA options for adults, minors, small businesses, and self-employed individuals. 
  • Excellent educational resources for new investors. 

Cons

  • Restricted to the U.S. and main island residents.
  • Mutual funds have high fees and the margin rates are also higher. Higher-than-average options contract fees

3. Charles Schwab IRA


Schwab is on our list of top 10 Roth ira accounts due to its longstanding reputation as the best choice for those who want more options for their retirement accounts.

Some attractive features the Schwab IRA provides include outstanding education and training for recent investors, high-caliber tools for active traders, top-notch customer service as well as zero trading commissions on stocks and ETFs. 


Pros

  • Very good mobile app with Robo-advisory services, and a physical branch network
  • free stock options and ETF trades. 
  • Multiple platforms that meet the needs of different customer bases with zero minimum or fees and the potential to add external accounts to the platform for a more accurate financial picture.
  • Extensive research.

Cons

  • Limited cryptocurrency trade. 
  • Low default cash sweep to a money market account.
  • Margin rates are higher than some competitors

4. Betterment


Betterment is a New-York based company that was started in 2008 by Jon stein.

RELATED:  8 Ways to Make Your Money Work for You in 2022

It specializes in Robo-advising and cash management services and is widely recognized as the largest independent Robo-advisor.

Betterment Is characterized by goal-oriented tools and helpful tax strategies. 

Betterment is a trustworthy company that’s registered with the SEC and a member of the FINRA. Some notable pros and cons to look out for are,


Pros

  • Strong goal-based tools.
  • Fast and easy account setup as well as no account minimum and low fees.
  • Portfolios are fully transparent before funding. You can effortlessly change portfolio risk or switch to a different type of portfolio.

Cons

  • There is no margin lending, secured loans, or borrowing options against your portfolio.
  • No direct indexing.
  • The standard plan incurs a charge of $199–$299 to talk to a financial planner.

5. SoFi 

SoFi Technologies, Inc. an American online personal finance company was established on August 10, 2011.

It provides a truckload of financial products that encompass student loan refinancing, mortgages, personal loans, credit cards, investing, and banking via both their mobile app and desktop interfaces.

One of the many unique features of SoFi allows its customers access to free management and financial advisors as well as career counselors. 

These features have made SoFi Automated Investing ideal for beginning and younger investors. 

Pros

  • As earlier stated, SoFi offers free management and customer support services to its customers.
  • access to certified financial planners and experts.
  • Wide range of low-cost investments and high suitability for beginners.
  • Cryptocurrency trading available.


Cons

  • SoFi is presently only accessible to residents of the United States, so residents of other countries will want to select a different brokerage. 
  • Limited account types and automated trading platform’s track record.
  • No tax-loss harvesting.

6. Ally Invest IRA

The no 6 on our list of top 10 Roth IRA accounts is the Ally invest ira. While it might not be as well known as other IRA providers, it is noted for its track record for being a good option for active traders.

Another attractive feature is its various helpful trading tools and an easy-to-use trading platform as well as zero( $0)  account minimum that makes it appealing to beginners. 

 It is quite a choice with its over 100 years history and almost 9 million customers. They also offer protection for their investors.  

Pros

  • No account minimum.
  • Strong research and tools as well as a web-based platform.
  • Free trades on eligible U.S. stocks, options, and ETFs. 

Cons

  • Non-existence of branches.
  • No cryptocurrencies
  • Not so good customer interaction

Read: 401K VS IRA: Is A 401k An IRA | Full Comparison And Similarities

7.’E*TRADE

With 30 branches and expertise in several financial services, E*TRADE stands out from several other brokerages.

E*TRADE is also widely known for its robust and user-friendly online tools.

Pros

  • Outstanding customer assistance.
  • Easy-to-use tools.
  • Their Roth IRA offering does not require a minimum deposit and has no opening or sustenance fees.

Cons

  • Expensive services
  • Complex platforms

8. TD Ameritrade IRA

TD Ameritrade (a 50-year-old company) Is known as one of the best investment platforms for IRA customers.

Its largest advantage includes its $0 commissions, $0 minimum balance, varying choice of commission-free exchange-traded funds, and zero transaction fee for mutual funds.

RELATED:  How To Build A CD Ladder In 2022 | Easy Step-by-Step Guide

9. Merrill Edge IRA 

For individuals that own an account with the bank of America, those who need customer service in person, and new brokers generally, Merill edge might be a perfect fit for you.

Merrill Edge is an online broker owned by Bank of America. 

Merrill Edge is known for providing intense research from its large team of analysts as well as providing solid educational resources for enthusiastic new investors.

In terms of customer care and support, with Merrill edge, you’ll have access to customer support on the phone 24 hours a day throughout the week, and you can get in-person assistance at more than 2,000 Bank of America locations after scheduling an appointment.

Some CONS to however look out for are their poor basic site navigation and trading interface, Advanced traders may find fewer securities on offer, etc.

10. Ellevest

Ellevest is a women-focused organization that focuses on the needs of women but with its easy access to financial professionals and low fees, the company will appeal to all investors.

It is best suited for new investors looking for help getting started with investing, saving for retirement, or saving for specific goals.

It is vital to note that while this Robo-advisor is run by women and marketed to women, men can be clients, too.

This Robo-advisor works almost the same way as competing platforms that weren’t formulated with a particular gender in mind.
 

PROS

  • Ellevest is well known as a provider of counsels for goal-based investing, Beginning or hands-off investors, Financial planning, etc. 
  • No account minimum.
  • Affordable fees
  • Ellevest provides career counseling for people especially women ( addressing issues that might be particular to women). 

Cons

  • IRA access for Plus and Executive members only.
  • No tax-loss harvesting.

Read: Aspirations Investing Overview: How It works

CONCLUSION

It is no doubt that taxes take a lot out of people’s money, in order to minimize that, that is where a Roth IRA comes in.

A Roth ira might make more sense to you if you would not want to pay huge amounts as taxes in the future, you are assured of a higher income at retirement, love future investment, would like to start saving for your kids from now, etc.

However, note that a Roth ira is for anybody, as long as you make a stable income. 

After its introduction in 1997, there have been lots of Roth IRA options all around now, the numbers of people switching to Roth IRA plans are still increasing. 

However, listed in this article are the top 10 Roth ira accounts you might like to start with 

1. Vanguard
2. Fidelity
3. Charles Schwab
4. Betterment
5. SoFi
6. Ally invest
7. E*TRADE
8. TD Ameritrade
9. Merrill Edge IRA
10. Ellevest

When choosing a Roth IRA service provider, be sure to weigh the pros and cons as well as evaluate the various options and pick the one that best suits you. 

LINKS/ REFERENCES

Recommendation

Leave a Reply

Your email address will not be published.

You May Also Like