Why a Schwab Traditional IRA?

Contribute pre-tax or after-tax dollars using money you've earned and pay no taxes until you withdraw funds during your retirement. You'll also benefit from Schwab's competitive pricing and time-tested expertise.

Value and choice

  • No fees for opening or maintaining your account, plus the $1,000 minimum opening deposit will be waived if you set up an automatic deposit of at least $100 a month. Other account fees, fund expenses, and brokerage commissions may apply.1
  • 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 complimentary retirement 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.5

How it works.

Opening a Traditional IRA at Schwab is fast and easy. Apply online or by mail, or call us at 866-855-9095 to get assistance from a Schwab investment professional.

FAQs

  • What is a Traditional IRA?

    A Traditional IRA is an Individual Retirement Account to which you contribute pre-tax or after-tax dollars, and which allows your money to grow tax-deferred. Your money is treated as current income when you make withdrawals after age 59½. According to the Traditional IRA rules, there are no income limitations to your contributions, but you must start taking distributions after age 70½.

    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 any earnings 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).

  • What are the Traditional IRA contribution limits for each year?

    The Traditional IRA contribution limits are $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.

See more Traditional IRA FAQs

Understanding Traditional IRAs

Looking for more details about Traditional IRAs? We've provided the following resources to help you learn more.

Tools

Use these calculators to help determine if a Traditional IRA is right for you.

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

Individual Retirement Account is rated 4.3 out of 5 by 621.
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Rated 5 out of 5 by from 30+ years of outstanding service, low costs, and reliability Over my working life, I've had 401k accounts with other brokerage/financial institutions. But none have provided the level of service that Charles Schwab has given me for over 3 years. Great customer service, reliable systems, full range of investments, and excellent value.
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Rated 5 out of 5 by from MANAGING IRA'S I HAVE HAD IRA'S WITH SCHWAB FOR MANY YEARS AND I AM HAPPY THAT THEY MANAGE THEM TOTALLY..
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Clients of independent investment advisors: You may also contact your advisor or call Schwab Alliance at 800-515-2157.