Best Roth IRA Accounts for 2020

Disclosure: TheSimpleDollar.com has an advertising relationship with some of the offers included on this page. However, the rankings and listings of our reviews, tools and all other content are based on objective analysis. For more information, please check out our full Advertising Disclosure. The offers that appear on this site are from companies from which TheSimpleDollar.com receives compensation. All products are presented without warranty and all opinions expressed are our own.

E*TRADE IRA: Best for balance

If you’re an investor trying to find a Roth IRA that excels in all categories, E*TRADE is a great fit. The company has fee-free trades and extensive research tools and access to over 4,400 no-transaction-fee mutual funds. E*Trade is a great all-around pick backed by an industry-standard name.

What is a Roth IRA?

One of the more popular financial tools for retirement planning created in 1997 and named after Senator William Roth of Delaware is the Roth IRA. Much like a traditional IRA, the Roth is a collection of stocks, bonds, ETFs, CD investments, and more bundled into one account used to plan for retirement. Unlike traditional IRA accounts, though, the Roth diverts its tax advantages to retirement by having the investor pay taxes on the investment now. This is ideal for those who are anticipating being in a higher tax bracket later in life. Due to the significant potential tax benefits of an IRA account, the Internal Revenue Services (IRS) has limited the amount of money individuals can contribute annually to their account.

Understanding the difference between Roth IRA and 401k

How should I choose the right Roth IRA?

Choosing the right Roth IRA for you shouldn’t be hard, but it is a significant step in developing your future retirement savings plan. Take the time to weigh what’s most important to you and your family and find the best IRA that links with those goals. Make sure to look at account fees, required minimums, management and trading options and any associated promotions.

The bottom line

Making the decision to start saving for retirement as early in life as possible is almost always the smart move. By doing so through tax-advantaged plans like Roth IRAs, investors can better set themselves and their families up for success. Keep in mind that not all IRAs are created equally, and it’s important you take the time to select the best IRA for your unique needs and situation. Any wise investor will tell you there is no time like the present to start saving for the future.