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.

FAQs

  • 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

  • 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 2016 and 2017 ($6,500 if you are at least age 50) or up to 100% of earned income, whichever is less. Income limits apply.

    Additional source

See more Roth IRA FAQs

Understanding Roth IRAs

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

Tools

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 4.2 out of 5 by 642.
Rated 4 out of 5 by from
Date published: 2017-05-13
Rated 5 out of 5 by from 5 stars excellent service, great execution and good people standing behind product
Date published: 2017-05-12
Rated 5 out of 5 by from
Date published: 2017-05-10
Rated 5 out of 5 by from Great opportunities. Great way to be able to handle your money in a tax differed setting. Trades are made in a very informed intuitive way.Love it!!!
Date published: 2017-05-05
Rated 4 out of 5 by from Good Perfomer Schwab has handled our IRA very well.
Date published: 2017-05-05
Rated 5 out of 5 by from Wonderful! My first IRA over 30 years ago was with Charles Schwab . After a couple of years that small account went into a competitor's mutual fund. But, after retirement three years ago, the first place I came back to was Schwab when I converted my employment 401(k) to an IRA. Now, all of my accounts are with Schwab. I could not be happier with the service and the choices of investment opportunities.
Date published: 2017-05-04
Rated 2 out of 5 by from What gives? We like that you double check occasionally when we withdraw cash, but today someone, on a recorded line, said she didnt have our correct address, (and you do! and did)...she said you still have our Des Moines address, I don't see it anywhere. I knew we changed our address when we moved. Why isn't the correct one in your internal system?
Date published: 2017-05-02
Rated 5 out of 5 by from Excellent Service, Record Keeping and Technology Schwab offers excellent personal service by advisors, and provides useful and easy to understand reports and user friendly transaction technology for all types of accounts. Annual tax reports are always extremely user friendly. Recently lowered fees are also an attraction. In addition to IRA, personal and Trust accounts, we have a custodial IRA for our daughter and we used Schwab to act as custodian for our company profit sharing plan for many years and found that service to be excellent as well. The only issue I have is that they do not seem to offer a system for pin code log in verification which text's a pin code to your mobile phone as a double security measure against identity fraud.
Date published: 2017-05-01
  • y_2017, m_5, d_23, h_8
  • bvseo_bulk, prod_bvrr, vn_bulk_1.0.0-hotfix-1
  • cp_1, bvpage1
  • co_hasreviews, tv_0, tr_642
  • loc_en_US, sid_1003, prod, sort_[SortEntry(order=SUBMISSION_TIME, direction=DESCENDING)]
  • clientName_schwab

Choose your IRA:

Trade 3+ times per month? Add free Schwab Trading Services™.More Info

Get free access to Schwab's advanced trading platforms and trading specialists—no trade minimum required.

Continue

We're here to help

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