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 567.
Rated 5 out of 5 by from Schwab is great! I can truly say Schwab has been a friend for a long time.
Date published: 2020-01-14
Rated 5 out of 5 by from
Date published: 2019-11-12
Rated 5 out of 5 by from First Time Schwab Customer First time Schwab customer and so far everything has been great. Mobile app has been excellent and easy to use.
Date published: 2019-11-12
Rated 2 out of 5 by from Tried getting help, only given Up Sell information I recently opened a Roth IRA with Schwab. The next day I received a voicemail from an Investment Consultant asking if I had any questions. I did, and I called and left him a voicemail with my questions. My questions were extremely specific to setting up an automated investment plan to make a deposit monthly from my external checking account. The rep simply could not stop himself from trying to sell me on other products - products I did not ask about - products I did not add to my portfolio - products I had ZERO interest in. I clarified that, again, for this rep. However, he still followed up with emailing me instructions on how to move money from other firms to Schwab. Again, NOTHING to do with what I was asking. I've been with Schwab for many years now and this latest interaction has left a very bad taste in my mouth and it is one I'll remember, and one I'll share with people when asked in the future. I suggest Schwab change their approach and have a SERVICE professional contact customers when they set up new accounts online to follow up, not a SALES person!
Date published: 2019-11-11
Rated 4 out of 5 by from
Date published: 2019-10-08
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Clients of independent investment advisors: You may also contact your advisor or call Schwab Alliance at 800-515-2157.