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As you start thinking about retirement, you’ll likely consider various retirement savings vehicles, namely IRAs and 401(k)s or other retirement plans. Both retirement plans provide tax-advantaged savings options, but you’ll fund your account with pre-tax dollars if you choose a traditional IRA or 401k. Roth IRAs, as well as Roth 401(k)s, are funded with after-tax contributions.
A clear distinction between the traditional and Roth versions, though, is that Roth IRAs allow you to make early withdrawals without receiving monetary penalty. These retirement vehicles also have no age or minimum distribution requirements.
You can set up Roth IRAs through most banks, online brokerages, robo advisors, and other investment apps. As with traditional IRAs, these accounts include an annual contribution limit of $6,000, for those under 50, and $7,000 (people 50 and older).
For 2023, single individuals can contribute if they earn $153,000 or less, and married couples are eligible for contributions if they earn $228,000 or less (the 2022 limits were 144,000 and $214,000, respectively).
The Best Roth IRAs of 2023
Charles Schwab IRA – Product Name Only: Best all around
Fidelity IRA – Product Name Only: Best for retirement planning
Merrill Edge IRA – Product Name Only: Best for active trading
TD Ameritrade IRA – Product Name Only: Best for mobile trading
Betterment IRA – Product Name Only: Best for automated investing
SoFi IRA – Product Name Only: Best for beginner investors
Wealthfront IRA – Product Name Only: Best for goal planning
A good Roth IRA account should offer low fees and/or commissions and provide access to several investment options. Keep reading to see our top picks.
The Best Roth IRAs
Our Expert Panel for The Best Roth IRAs
We consulted financial planning professionals, retirement experts, and our wealth-building reporter to inform our picks for the best Roth IRA accounts. You can find the full transcript of our interviews with these experts at the bottom of this page.
We’re focusing on what makes a Roth IRA account most useful. When comparing accounts, it’s important to consider fees, investment choices, retirement planning resources, and more.
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Methodology: How We Chose the Best Roth IRAs
We reviewed a dozen Roth IRA accounts to determine the …read more
Source:: Business Insider