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 4.1 out of 5 by 472.
Rated 5 out of 5 by from great customer service website Schwab met all my requirements and answsered my questions
Date published: 2018-10-01
Rated 5 out of 5 by from Easy to use Schwab is by far the best product available to use on the internet. I am very satisfied to have my IRA managed by Schwab. They keep the responsibility with me and make it easy to trade, buy, or research accounts.
Date published: 2018-09-20
Rated 1 out of 5 by from No one wants to finish my IRA I had one guy help me establish an account but he turned me over to a local rep that disappeared.
Date published: 2018-09-12
Rated 4 out of 5 by from So far so good
Date published: 2018-09-06
Rated 1 out of 5 by from Bad Website I have been a Schwab customer for many years and have always been a big fan. This web site is making me crazy however. I am helping a family member set up a Roth IRA. I simply want to print our a copy of the application form so, my family member can get their info together to submit an on line application to set up an account. I find the form easily, but it is impossible to print out. The form has two spots labeled "print". Clicking on either will result in no action, or will cause the schwab logo to print out and then stop. Why can't the system work?
Date published: 2018-09-04
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  • clientName_schwab

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