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 801.
Rated 5 out of 5 by from Unbeatable Schwab is the best in every aspect of business.
Date published: 2017-11-30
Rated 1 out of 5 by from Where is the sell option hiding? No where on this site am I able to find any tab or heading to sell shares. Tons of bloated headings that probably are rarely accessed, but missing one key element - SELL SHARES. Not sure why I'm investing with Schwab if there's no way to get my funds when I need them.
Date published: 2017-11-29
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Date published: 2017-11-28
Rated 4 out of 5 by from Using my accounts, since the most recent changes, is very difficult for someone my age.
Date published: 2017-11-28
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Date published: 2017-11-25
Rated 3 out of 5 by from New format of my investments neither user friendly nor helpful. I just logged in. The new format you have introduced is already annoying me, and I do not know how to find out the purchase dates and other germane information I need regarding my quirky and low yielding account. That, added to the impossibility to get anyone to answer the phone is making me wonder why I dont just move my account. I understand the competition out there is vicious, but if you want to help us make informed decisions out here, please try using your products before you foist them on us. Also try calling your company. If you waited 1/2 hour like I have just to ask a simple question, you will also wonder why we remain loyal to Schwab.
Date published: 2017-11-25
Rated 4 out of 5 by from Excellent Service Schwab has met all my needs for Custodial Service, trading and advice.
Date published: 2017-11-24
Rated 5 out of 5 by from Outstanding! great portfolio has exceeded RMD for 9 years since retirement. Financial adviser has been terrific with all questions and advice. No fees for trades or this help is great!
Date published: 2017-11-23
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Clients of independent investment advisors: You may also contact your advisor or call Schwab Alliance at 800-515-2157.