Traditional IRA

Traditional IRAs can be a smart solution to increase your tax-deferred retirement savings.

online equity trades

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    Online listed equity trades¹

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    Professional guidance

  • Online tools and resources

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  • Satisfaction Guarantee²

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View important information about our online equity trades and Satisfaction Guarantee


1. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules. Employee equity compensation transactions are subject to separate commission schedules.

2. If you are not completely satisfied for any reason, at your request Charles Schwab & Co., Inc. ("Schwab"), Charles Schwab Bank, SSB ("Schwab Bank"), or another Schwab affiliate, as applicable, will refund any eligible fee related to your concern. No other charges or expenses, and no market losses will be refunded. Refund requests must be received within 90 days of the date the fee was charged. Schwab reserves the right to change or terminate the guarantee at any time. Go to schwab.com/satisfaction to learn what’s included and how it works.


Advantages of a Traditional IRA

  • Grow potential earnings tax deferred

    May be a good option for those who expect to be in the same or lower tax bracket in the future as you'll pay ordinary income tax on your withdrawals.

  • No income limitations to open an account

    However there are annual contribution limits to the account.

  • Current year contributions may be tax-deductible

    Depending on your income level or if you don't have an employer sponsored retirement plan your contribution is fully deductible. 

Fees and Commissions

Open an account with a $0 minimum deposit plus get $0 online listed equity trade commissions3, regardless of your account balance or how often you trade.

View important information about our fees and commissions


3. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules. Employee equity compensation transactions are subject to separate commission schedules.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc.
This tax information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends that you consult with a qualified tax advisor, CPA, financial planner, or investment manager. Depending on the type of account you have, there are different rules for withdrawals, penalties, and distributions. Please understand these before opening your account.


Benefits of a Traditional IRA with Schwab

  • Retirement planning tools and resources

    Schwab offers planning resources, calculators and retirement income strategies, to help you plan for the future.

  • Investing Insights

    Stay informed with the latest marketing commentary, insights, and investing ideas from Schwab experts. 

  • Get support 24/7 + convenience of 300+ branches

    Call our financial professionals anytime. Plus get local support at a branch near you.


Accounts in multiple places? We are here to help you transfer.

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Common questions

We'll send you your account number as soon as your application is completed and approved. You can use your account number to log in and manage your account. Please note that your account must be funded before you can begin trading.

This type of account can give you immediate tax benefits, and your contributions can grow tax-deferred. However, you'll pay taxes on deductible contributions and earnings when you take out money in retirement.

When you open a Traditional IRA with Schwab, you get:

  • Immediate tax benefits if you qualify.
  • Retirement planning tools and resources.
  • 24/7 service and support.

Choose from stocks, bonds, ETFs, mutual funds, CDs, and more. Schwab also offers professional portfolio management solutions that can make investing even easier. As a Schwab client, you can speak with a Schwab investment professional who can help you decide which investments are right for you to consider. Just give us a call at 866-855-5635. We're here and happy to help.

You can contribute $6,000 for the tax year 2021 and $6,000 for the tax year 2022 ($7,000 for tax year 2021 and $7,000 for year 2022 if you are at least age 50) or up to 100% of earned income, whichever is less. Income limits apply.  

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 deductible contributions and earnings when you take money out in retirement. With a Roth IRA, there are no immediate tax benefits, but contributions and earnings grow tax-free. All withdrawals can be taken out tax-free and penalty-free providing you're 59½ or older and you have met the minimum account holding period (currently five years).

Compare a Roth vs Traditional IRA

Account Opening and Funding Questions

Account Opening and Funding Questions
 

Consolidating all your accounts at Schwab may help you better manage your finances. We can help you every step of the way in bringing your assets over, in a tax-efficient manner. Click here to learn more.

  • Social security number(s)
  • Driver's license
  • Employer's name and address (if applicable)
  • Statement information for any assets or cash you'd like to transfer
  • Beneficiary information

The easiest way to open Schwab IRA account is online. You can also get help opening an account by calling us at 866-855-5635 or visiting one of 300 local branches.

The online account application process only takes about 10 minutes. Key steps include:

  • Choosing the type of IRA account
  • Providing your personal, employment, and financial information
  • Selecting specific account features
  • Creating login credentials and providing contact information for your account
  • Verifying your identity
  • Indicating how you'll fund the account

There are multiple ways to fund your new Schwab account:

  • Electronic funds transfer (EFT) with Schwab MoneyLink® to transfer funds or assets from an external account. You may also continually fund your account by setting up auto deposit to transfer funds from your checking account.
  • Wire transfer request from another financial institution.
  • Check deposit by mail or in person at your local Schwab branch.

Full funding instructions and access to online fund transfer tools will be provided after your account is opened.


Take the next step

Have more questions? We're here to help.