Roth IRA

Open a Roth IRA and take advantage of after-tax benefits as you save for retirement.

$0

Online listed equity trades¹
24/7

Professional guidance
Online tools and resources
Satisfaction Guarantee²

View important information about our online equity trades and Satisfaction Guarantee 1. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, 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"), Charles Schwab Bank, SSB ("Schwab Bank"), or another Schwab affiliate, as applicable, will refund any eligible fee related to your concern. No other charges or expenses, and no market losses will be refunded. 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.: 1. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, 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"), Charles Schwab Bank, SSB ("Schwab Bank"), or another Schwab affiliate, as applicable, will refund any eligible fee related to your concern. No other charges or expenses, and no market losses will be refunded. 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 Roth IRA

Earnings grow tax-free

Contributions and potential investment gains accumulate tax-free.
Qualified tax-free withdrawals

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).
No mandatory withdrawals (unlike a Traditional IRA)

There is no need to take required minimum distributions with a Roth IRA.

Fees and commissions

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

View important information about our fees and commissions

3. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, 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.: 3. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, 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 Roth 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 market 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.

What are the tax benefits?

With this account, your contributions aren't tax-deductible – but your earnings grow tax-free and withdrawals can be made tax-free after five years, provided you are age 59½.

You may be eligible for tax-free withdrawals before age 59½:

In case of death or disability.
To pay up to $10,000 towards the purchase of a first home.
To pay up to $5,000 towards birth or adoption expenses.

While there are no current-year tax benefits, you can contribute to a Roth IRA whatever your age, and you won't need to take Required Minimum Distributions based on your age.

What are the benefits of a Schwab Roth IRA?

When you open a Roth IRA with Schwab, you get:

Investment help and guidance.
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. Just give us a call at 866-855-5635. We’re here and happy to help.

How much can I contribute each year?

You can contribute up to $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.

What are the eligibility requirements to open a Roth IRA?

There are income limitations to open a Roth IRA account. If you file as a single person and your Modified Adjusted Gross income (MAGI) is above $139,000 for tax year 2020 and $140,000 for tax year 2021 or if you file jointly and you have a combined MAGI above $206,000 for tax year 2020 and $208,000 for tax year 2021, you may not be eligible to start a Roth IRA. See the Roth IRA contribution limits for more information.

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 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 Roth 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 a Roth IRA account?

The easiest way to open Schwab IRA account is online. You can also get help opening an account by calling us at 866-855-5635 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 Roth IRA today. Call 866-855-5635 or

Open an Account

Read Client Reviews

View important information about our ratings and reviews

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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$0 online equity trade commissions + Satisfaction Guarantee.

These 8 mental mix-ups could be costing you money. Do you know what they are?

These 8 mental mix-ups could be costing you money. Do you know what they are?

More choices. More ways to invest how you want.

More choices. More ways to invest how you want.

Withdrawals & Distributions

Calculators

Roth IRA

Online listed equity trades¹

Professional guidance

Online tools and resources

Satisfaction Guarantee²

Advantages of a Roth IRA

Earnings grow tax-free

Qualified tax-free withdrawals

No mandatory withdrawals (unlike a Traditional IRA)

Fees and commissions

Benefits of a Roth 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

Take the next step

We're here to help

Call

Chat

Visit

Read Client Reviews

Call

Advice Headline

Advice Headline

See how we stack up to the competition.

$0 online equity trade commissions + Satisfaction Guarantee.

These 8 mental mix-ups could be costing you money. Do you know what they are?

These 8 mental mix-ups could be costing you money. Do you know what they are?

More choices. More ways to invest how you want.

More choices. More ways to invest how you want.

Roth IRA

Online equity trades

Online listed equity trades¹

Professional guidance

Online tools and resources

Satisfaction Guarantee²

View important information about our online equity trades and Satisfaction Guarantee

Advantages of a Roth IRA

Earnings grow tax-free

Qualified tax-free withdrawals

No mandatory withdrawals (unlike a Traditional IRA)

View important information about our fees and commissions

Benefits of a Roth 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

We're here to help

Call

Chat

Visit

Ratings and Reviews

View important information about our ratings and reviews