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 722.
Rated 1 out of 5 by from Terrible Broken Product: Schwab and Checking Apparently, an additional Schwab One account initially created failed, but instead of returning money and closing the accounts, they kept them "open" for years, and terrible IRA account auto-investments with sub-index returns. The attempts to reallocate and change investments were always buggy, or incomplete, with extreme difficult to find simple cheap broad market index fund replacements. What is worst is that the Schwab.com website AND many multiple calls to Customer Support, across many different departments and days, NEVER communicated that the accounts were "invalid." Instead, attempts to set up an external linked checked account was REFUSED BY SCHWAB BANK to my external bank, which was so weird to them that they (external bank) placed a security hold against possible fraud. But still after multiple calls, wherein I was OFFERED a fix to apply a MANUAL voided check linked account configuration, did a final "Customer Verification Research Department" finally be the FIRST in YEARS (3+) that this was an Invalid account that should not exist because some issue with an EXPERIAN credit check in 2014 (with Experian being the unreliable, unsecure, terrible consumer credit monster).
Date published: 2017-09-16
Rated 5 out of 5 by from Good IRA account. Never had a problem with Schwab.
Date published: 2017-09-12
Rated 4 out of 5 by from IRA with mandatory withdrawals Schwab does well for research and trading. Meets all my needs for an asset statement (Balance Sheet). Falls way short for maintaining a projected income statement. Cash flow planning is very difficult because you do not offer Est. Annual Income by the security for all securities in a portfolio. Total Return monitoring must be done on my own spreadsheet. Takes several hours every month. I have mentioned to my acct mgr. If there is no change, I will be moving to an online brokerage that does. We moved my wife's acct from one that does to Schwab and she is lost without an estimated income summary. It has been one of her most reliable benchmarks for nearly 30 years.
Date published: 2017-09-12
Rated 4 out of 5 by from
Date published: 2017-09-12
Rated 5 out of 5 by from
Date published: 2017-09-11
Rated 4 out of 5 by from Great Brokerage Firm I have always had great experience at Charles Schwab. I had my retirement account with them for a few years now. The only thing is the outrageous fees. I'm glad they lowered them from $8.95 to $4.95. I remember in early 2015 I phoned in an investment. I had to pay $13.95 for the commission, which is a lot. But I'm hoping they can reduce their commission costs.
Date published: 2017-09-10
Rated 5 out of 5 by from Efficient service Information updated timely.
Date published: 2017-09-05
Rated 5 out of 5 by from
Date published: 2017-09-02
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Clients of independent investment advisors: You may also contact your advisor or call Schwab Alliance at 800-515-2157.