Traditional IRA

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

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Online equity trades¹
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View important information about our online equity trades and Satisfaction Guarantee

1. The standard online $0 commission does not apply to large block transactions requiring special handling, restricted stock transactions, trades placed directly on a foreign exchange, transaction-fee mutual funds, futures, or fixed income investments. Options trades will be subject to the standard $.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, foreign transaction fees for trades placed on the US OTC market, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.

2. If you are not completely satisfied for any reason, at your request Charles Schwab & Co., Inc. ("Schwab") or Charles Schwab Bank, SSB ("Schwab Bank"), as applicable, will refund any eligible fee related to your concern. 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 equity trade commissions³, regardless of your account balance or how often you trade.

View important information about our fees and commissions

3. The standard online $0 commission does not apply to large block transactions requiring special handling, restricted stock transactions, trades placed directly on a foreign exchange, transaction-fee mutual funds, futures, or fixed income investments. Options trades will be subject to the standard $.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, foreign transaction fees for trades placed on the US OTC market, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and 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

When can I access my account?

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.

What are the tax benefits?

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.

What are the benefits of a Schwab Traditional IRA?

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.

What kinds of investment choices do I have?

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 866-855-5636. We're here and happy to help.

How much can I contribute each year?

You can contribute $6,000 for the tax year 2020 and $6,000 for the tax year 2021 ($7,000 for tax year 2020 and $7,000 for year 2021 if you are at least age 50) or up to 100% of earned income, whichever is less. Income limits apply.

Roth or Traditional 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 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

What if I have accounts elsewhere?

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.

What do I need to open a Traditional IRA account?

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

How do I open an IRA account?

The easiest way to open Schwab IRA account is online. You can also get help opening an account by calling us at 866-855-5636 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

How do I fund my 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

Open a Schwab Traditional IRA today. Call 866-855-5636 or

Open an account

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Read Client Reviews

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Information about Clients Speak™, Ratings and Reviews by Schwab clients.

Ratings and reviews are submitted by clients voluntarily and are screened for acceptance in accordance with the Publishing Guidelines prior to publication. Please see the Publishing Guidelines for details regarding which reviews are published.

The average rating scores are based on published reviews for the indicated account(s) and services and do not incorporate ratings and reviews that do not satisfy the Publishing Guidelines. Ratings and reviews are added continuously and average ratings are updated dynamically as reviews are added or removed. During the period from 1/1/2011 to 9/30/2017, 5,706 reviews were submitted, 4,705 were accepted, and 956 were not accepted for publication in accordance with the Publishing Guidelines. Sorting of reviews by "Featured Reviews" first shows reviews selected by Charles Schwab & Co., Inc. and Schwab Bank based on subjective criteria deemed relevant at the time of selection including marketing priorities.

Ratings and opinions expressed by clients are not meant to suggest future performance or the suitability of any account type, product, or service for any particular client and may not be representative of the experience of other clients. Charles Schwab & Co., Inc. and Schwab Bank cannot guarantee the accuracy of the information included in client reviews.

Ratings and Reviews are powered by Bazaarvoice, a 3rd party vendor not affiliated with Charles Schwab & Co., Inc. or Schwab Bank.

If you have additional questions or concerns about Ratings & Reviews or would like to verify its authenticity, please contact a Schwab representative at either 800-435-4000, the phone number on your statement, or by email at ratingsandreviews@schwab.com.

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Traditional IRA

online equity trades

Online equity trades¹

Professional guidance

Online tools and resources

Satisfaction Guarantee²

View important information about our online equity trades and Satisfaction Guarantee

Advantages of a Traditional IRA

Grow potential earnings tax deferred

No income limitations to open an account

Current year contributions may be tax-deductible

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

View important information about our fees and commissions

Benefits of a Traditional IRA with Schwab

Retirement planning tools and resources

Investing Insights

Get support 24/7 + convenience of 300+ branches

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

Common questions

Account Opening and Funding Questions

Account Opening and Funding Questions

Take the next step

Take the next step

Have more questions? We're here to help.

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Read client reviews

View important information about our ratings and reviews

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