Welcome USAA members.
What is an Individual Retirement Account?
Individual retirement accounts (IRAs) are personal retirement savings accounts that offer tax benefits and a range of investment options. Many investors use IRAs as their common source of saving for retirement.
Even those with access to employer-sponsored plans, such as a 401(k) or 403(b), still tap into IRA tax advantages to boost their savings and add flexibility to their portfolio.
Schwab IRAs at a glance:
Invest your way
Charles Schwab offers Traditional, Roth, Rollover, Inherited, and Custodial IRAs.
No hidden fees
Accounts have $0 opening fees, $0 maintenance fees, and $0 commission on online stock and ETF trades.1
Help when you need it
Schwab combines online investing tools with 400+ U.S. branches, 24/7 service, and in-person retirement planning.
Trusted by investors. Recognized by industry leaders.
Best Online Broker for IRA Investors
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Schwab was named the 2026 Best Investing Platform
U.S. News
#1 Customer Service
StockBrokers.com 2026 Annual Awards
"For retirement investors who want both digital tools and in-person help, Schwab continues to set the standard."
—NerdWallet 2026 Best Online Brokers for IRA Review: April 2026
©2014-2026 and TM, NerdWallet, Inc. All Rights Reserved.
What are the different types of IRAs?
Traditional IRAs, Roth IRAs, and Rollover IRAs are the three most commonly chosen individual retirement options. Variations of common IRA types include Inherited IRAs and Custodial IRAs. Each IRA has its own characteristics to evaluate when setting your retirement savings goals.
Traditional IRA
- Contributions may be tax deductible. See Traditional IRA limits.
- Withdrawals of pre-tax contributions and earnings are taxed as current income during retirement.
- No income limitations.
- Learn more about Traditional IRAs.
Roth IRA
- Contributions are not tax deductible. See Roth IRA contribution limits.
- Withdrawals are generally tax-free and penalty-free after five years and after age 59½.
- Income eligibility limitations.
- Learn more about Roth IRAs.
Rollover IRA
- This process may result in more choices and lower fees than a 401(k).*
- Evaluate your options to decide if rolling over to a Traditional or Roth IRA is right for you.
- Funds can continue to grow tax advantaged.
- Learn how to roll over to an IRA.
Other types of IRAs
Inherited (Beneficiary) IRA
- For those who inherit a Traditional or Roth IRA.
- Tax-deductible contributions or IRA conversions aren't allowed.
- Annual distributions or liquidation of the account within a certain period is required.
- Learn more about Inherited IRAs.
Custodial (Minor) IRA
- For children under age 18 who are actively receiving earned income.
- Can be a Traditional or Roth IRA.
- Funds could be used to pay for future needs, such as college or retirement.
- Learn more about Custodial IRAs.
Small Business Solutions
- Choose from options for different sized businesses.
- SEP IRAs and SIMPLE IRAs are available options.
- Features range from high contribution limits to plan customization.
Unsure which IRA fits your needs?
Answer a few simple questions and our Help You Decide tool will tell you which IRA may be best for your needs.
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Schwab offers planning calculators and more to help you manage your future.
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Stay informed with the latest market commentary, insights, and investing ideas from Schwab experts.
Satisfaction guarantee
At Schwab, our commitment to your satisfaction is backed by a guarantee. If for any reason you're not completely satisfied, we'll refund your fee or commission and work with you to make things right.2
Fees and commissions
Regardless of your account balance or how often you trade, you can open an account with a $0 minimum deposit plus get $0 online listed equity trade commissions.
How to open an IRA at Schwab
Choose the right IRA
- Start by deciding which account fits your goals. Use Schwab's Help You Decide tool to determine which account type may be right for you.
Complete the online application
- Fill out the application form for Traditional IRA, Roth IRA, or Rollover IRA.
Fund your account
- Add money to your IRA using one of these methods:
- Transfer from a bank account
- Roll over funds from a 401(k) or another IRA
- Set up automatic contributions
Choose your investments
- Begin building your portfolio by selecting from a variety of stocks, bonds, ETFs, mutual funds, and more.
Take the next step
Already have an IRA?
IRAs: Common questions
The updated SECURE 2.0 IRA rules help you save longer, reduce penalties, and create more flexibility in how and when you use your retirement savings.
Schwab IRAs are brokerage accounts that hold investments like stocks, ETFs, and mutual funds. Because they are not bank deposits, they are not covered by FDIC insurance, but as brokerage accounts they are covered by SIPC.
For a Traditional IRA, you can contribute up to $7,000 in 2025 or $7,500 in 2026, or up to 100% of earned income, whichever is less. Individuals aged 50 and over can also make an additional catch-up contribution of $1,000 in 2025 or $1,100 in 2026. Roth IRAs have the same contribution limits but also have income eligibility requirements.
Not all of your IRA contributions may be eligible for a current-year tax deduction. See Traditional IRA contribution limits and Roth IRA contribution limits.
You can withdraw the excess contribution amount, but you will be charged a 6% penalty each year that money remains in your account. When you withdraw your funds, you'll need to file IRS Form 5329.
Note: Corrective distributions of excess contributions and earning are exempt from the 10% early distribution excise tax if the distribution is made before your federal income tax deadline (generally April 15th). To determine the best solution for your situation, contact your tax advisor.
You can remove the extra funds after the tax filing deadline (including extensions), but you will be charged a 6% penalty.
Note: The IRS has yet to provide a definitive answer on whether earnings from these funds must also be removed after the tax filing deadline. Check with a tax advisor to determine the best solution for your individual situation.
You can't take a loan from your IRA. However, you may be eligible to make an indirect rollover from your IRA (Traditional or Roth) once in a 12-month period without penalty if you replace the funds within 60 days.
If you don't pay back the distribution within 60 days, you may be subject to taxes and a 10% early withdrawal penalty. For Roth IRAs, you can take a distribution of contributions without penalty, but any earnings may be subject to taxes and a 10% early withdrawal penalty.
Before you reach age 59½, you are subject to a 10% penalty, in addition to federal and state taxes, on Traditional IRA distributions and earnings withdrawals from Roth IRAs. Roth IRA contributions can be withdrawn at any time without penalty. If IRS requirements are met, distributions from Traditional IRAs and Roth earnings are penalty-free under certain circumstances.
Your Modified Adjusted Gross Income (MAGI) is used to determine whether you are qualified for certain tax benefits, such as how much of your IRA contribution is deductible. Your MAGI is calculated by taking your Adjusted Gross Income (AGI) and adding certain items, such as foreign income or higher education tuition. The resulting number will dictate your IRA contribution deductibility.
With a Schwab IRA, you can choose from a wide range of investment options, including stocks, bonds, CDs, ETFs, and mutual funds. Build your own portfolio, or contact a Schwab investment professional to help you determine your investment plan.
CDs are available through Schwab CD OneSource®.3 To see a selection of today's rates, visit our Certificates of Deposits (CDs) page.
$0. Schwab charges no fee to open or maintain any IRA type (Traditional, Roth, Rollover, Inherited, Custodial). Online stock and ETF trades are $0 commission. Options trades are $0.65 per contract.
A Traditional IRA may be better if you expect to be in a lower tax bracket in retirement (you get the deduction now, pay tax on withdrawals later). A Roth IRA may be better if you expect to be in a higher tax bracket later (you pay tax now, withdrawals are tax-free). Income limits apply to Roth IRAs. Schwab's Help You Decide tool can guide your choice.
Yes, if you are eligible, you could have a Traditional IRA, Roth IRA, and a Rollover. Keep in mind, you can only contribute up to the annual IRA contribution limits across all your IRA accounts.
Yes. You can roll over an eligible 401(k) from a former employer into a Schwab Rollover IRA. A rollover can help you consolidate old workplace retirement savings in one place while keeping your assets in a tax-advantaged account. Before starting, review your options and check your plan's rules since taxes and other considerations can vary based on the type of 401(k), the type of IRA, and how the rollover is handled.*
Schwab may be a strong fit if you want a broad IRA platform with no account opening or maintenance fees, no minimum deposit, $0 online listed equity trade commissions, and access to a wide range of investments, including stocks, bonds, CDs, ETFs, and mutual funds. Before choosing an IRA provider, compare account fees, fund expense ratios, available investments, research tools, rollover support, and advisory options.
