Why a Schwab Roth IRA?

When you open a Roth IRA, any earnings grow tax-free, and withdrawals can be made tax-free after five years.5 No mandatory withdrawals are necessary, and you can contribute to your Roth IRA whatever your age.

Value and choice

  • No fees for opening or maintaining your account (other account fees, fund expenses, and brokerage commissions may apply),1 plus the $1,000 minimum opening deposit will be waived if you set up an automatic deposit of at least $100 a month.2
  • Choose from a variety of investment options that meet your goals and risk tolerance, including stocks, bonds, CDs, ETFs, and mutual funds.

Resources and advice

  • Access to retirement planning tools and services on Schwab.com.
  • A consultation with a Schwab investment professional can help you figure out where you stand today, how you envision your retirement, and how to get invested—at no extra cost.6

How it works.

It's convenient and easy to open a Roth IRA. Apply online or by mail, or call us at 866-855-9095 to get assistance from a Schwab investment professional.


  • What is a Roth IRA?

    A Roth IRA is an Individual Retirement Account to which you make contributions with after-tax dollars. The benefits of a Roth IRA are that your contributions can grow tax-free, and withdrawals are tax- and penalty-free after you've had the account for five years and are at least age 59½.

    Additional source: http://www.schwab.com/public/schwab/investing/retirement_and_planning/understanding_iras/roth_ira

  • Traditional or Roth IRA—what's the difference?

    A key consideration is whether it makes more financial sense to take advantage of immediate tax benefits or enjoy tax-free withdrawals in retirement. With a Traditional IRA, you may get immediate tax benefits, but you'll have to pay ordinary income tax on your contributions and earnings when you take money out in retirement. With a Roth IRA, there are no immediate tax benefits, but contributions and earnings can grow tax-free. All withdrawals can be taken out tax-free and penalty-free provided you're 59½ or older and you have met the minimum account holding period (currently five years).

  • Are there Roth IRA contribution limits I should know about?

    You make Roth IRA contributions on an after-tax basis, and your maximum Roth IRA contribution will depend on your earned income level. You can contribute up to $5,500 per year for tax years 2015 and 2016 ($6,500 if you are at least age 50) or up to 100% of earned income, whichever is less. Income limits apply.

    Additional source: http://www.schwab.com/public/schwab/investing/retirement_and_planning/understanding_iras/roth_ira/contribution_limits

See more Roth IRA FAQs

Understanding Roth IRAs

Looking for more information before you open a Roth IRA? Check out these educational resources.


Use the calculators below to compare the benefits of a Roth IRA vs. a Traditional IRA and more.

What clients think about our Individual Retirement Accounts (IRAs):

Individual Retirement Account is rated 4.211920529801325 out of 5 by 604.
Rated 5 out of 5 by from
Date published: 2016-09-12
Rated 4 out of 5 by from Linking IRA account to external accounts I was broaching the time in retirement where I i was at a point in my retirement where i want to take out monthly income distibution to an external account. I first went to the money link to set up the new account. When I tried on line it wouldn't let me link online. So I tried chat. The agent told me I had to set up via a form and fax back. She sent me the IRA distribution form which I started filling out but it was looking for specific distribution information which I wasn't ready with. So I called schwab, the agent on the phone walked through the steps of connecting the IRA account with the external account I already set up (via my spouses account). That seemed to be the problem is the account is associated to the profile. So now set up and I can either do one time or recurring distributions also indicating taxes to be withheld.
Date published: 2016-09-07
Rated 5 out of 5 by from Roth IRA Several years ago we decided to move some of our regular IRA money into Roth IRAs. We completed the transaction over a period of several years to spread out the taxes. The process was simple and now we have a portion of our retirement money that has been growing tax free and will be available for when we need it. The taxes on our RMDs are now lower because we reduced their value but kept and increased our IRA savings.
Date published: 2016-09-06
Rated 5 out of 5 by from IRA conversion to Roth IRA I decided to roll over a couple of holding in an IRA account over to a Roth IRA for the current tax year. I contacted my local Schwab financial advisor who helped guide me through the process. I think in future tax years I'll be able to do this on my own, but I very much appreciated the personal assistance from Schwab for this 'first time' conversion.
Date published: 2016-09-06
Rated 4 out of 5 by from There are a lot of products avalable stock, wide range of mutual funds, bonds, CDs
Date published: 2016-09-06
Rated 5 out of 5 by from Resolved a problem with my tax return While putting my taxes together for the previous year, I discovered to my horror that my wife and I contributed to her IRA when she was not eligible to make a contribution. I immediately called a Schwab IRA representative to find out what I needed to do to remedy this gross error on my part. We were on the phone for over 30 minutes and he expertly and clearly explained what needed to be done and the steps I needed to take to resolve the over payment to my wife's IRA. Those 30 some odd minutes immediately calmed my nerves and I was now confident this problem with our tax return could be easily resolved.
Date published: 2016-09-04
Rated 5 out of 5 by from Great Service I have been with Schwab probably for about 40 years and I've always had a great experience with them. I always felt that they really cared about me and my money and weren't just trying to sell me something. Over the years I've learned so much about investing from Schwab, for which I thank them very much.
Date published: 2016-09-02
Rated 5 out of 5 by from Super Service I wanted to consolidate my IRA's and needed to transfer two to Schwab. It was so easy. Filled out the forms and they took it from there. Great job
Date published: 2016-09-02
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We're here to help

Clients of independent investment advisors: You may also contact your advisor or call Schwab Alliance at 800-515-2157.