Best IRA Accounts of July 2024

The best IRA accounts offer low fees, high returns and excellent customer service. Consider opening an IRA account with SoFi or Rocket Dollar.

An individual retirement account (IRA) is a tax-advantaged investment account that individuals can use to save and invest for retirement. Traditional IRAs offer an up-front tax deduction, meaning you can deduct the amount you contribute to your IRA from your taxable income for the year. This can potentially lower your tax bill and save you money in the long run. Additionally, with a traditional IRA, you can defer paying taxes on your contributions and any earnings until you withdraw funds during retirement.

Ready to save and invest now? Here are Benzinga's top picks for the best IRA accounts to open this month, considering factors like account type, fees, investment options and customer service.

Quick Look: The Best IRA Accounts

• Best Overall No-Fee IRA Account: SoFi
• Best for Self-Directed Investing: Rocket Dollar
• Best for Tax-Deferred Crypto Investing: Bitcoin IRA
• Best for Low-Cost Crypto IRAs: iTrustCapital
• Best for Free Financial Planning For Multiple Accounts: Playbook
• Best for Traditional Brokerage: Fidelity
• Best for Online Brokerage: E*TRADE
• Best for Beginners: Betterment
• Best for Roth IRA: Vanguard
• Best for Rollover IRA: Charles Schwab

The Best IRA Accounts to Open in July 2024

Benzinga's top 10 picks cover a diverse range of IRA providers, each offering unique features tailored to satisfy the needs of investors. 

1. Best Overall No-Fee IRA Account: SoFi

SoFi Invest offers Traditional IRAs, Roth IRAs and SEP IRAs where you can invest in various assets without worrying about trading fees, commissions, minimum balances or minimum deposits.

You can choose between SoFi active or automated investing and also get free access to certified financial planners who can assist you with your retirement strategy.

Why We Love It:  SoFi lets you invest for your retirement without paying extra costs. This means that more of your hard-earned money goes directly towards your retirement savings, rather than being eaten up by unnecessary fees.

2. Best for Self-Directed IRA: Rocket Dollar

Rocket Dollar empowers users to open self-directed retirement accounts and invest in a wide range of alternative assets including real estate, cryptocurrency, crowdfunding and private equity. 

Rocket Dollar will set up a Limited Liability Company (LLC) or a trust for your account, which directly holds the assets, streamlining the process of setting up and managing a self-directed IRA or solo 401(k) account.

Unlike traditional retirement account providers that charge a percentage of assets under management, Rocket Dollar's fees are fixed and do not increase as the value of the account grows. Users pay a one-time setup fee and a flat annual fee that covers custodial services, record-keeping, and account maintenance. This means that users can accurately predict and budget for the fees associated with their self-directed retirement account.

Why We Love It: Rocket Dollar offers a unique opportunity to diversify your retirement portfolio with off-the-market investments. This allows investors to potentially earn higher returns than they would with more conventional investments like stocks and bonds.

3. Best for Tax-Deferred Crypto Investing: Bitcoin IRA

Bitcoin IRA enables you to buy and sell cryptocurrencies within a tax-advantaged IRA. It assists you to roll over existing retirement accounts into a crypto IRA and provides options for gold investing. 

You’ll also enjoy a user-friendly web and mobile interface, access to over 60 cryptocurrencies and multiple IRA options. While Bitcoin IRA offers self-directed IRAs for cryptocurrency and gold investing, it doesn't support other alternative assets like silver or real estate.

Why We Love It: Bitcoin IRA provides a simple way to diversify your retirement savings with crypto and gold while enjoying the tax benefits of an IRA. By diversifying their retirement portfolio with these alternative assets, individuals can potentially benefit from the high returns and growth potential of cryptocurrency, while also hedging against the volatility of traditional markets.

4. Best for Low-Cost Crypto IRAs: iTrustCapital

iTrustCapital allows investors to easily trade and hold cryptocurrencies and precious metals within tax-advantaged IRAs. It boasts a straightforward fee structure, with no account setup or monthly fees.

It stands out for having some of the lowest fees among crypto IRA investing options and is highly regarded by customers.

Why We Love It:  iTrustCapital makes it easy and affordable to include crypto and precious metals in your retirement portfolio. With low fees, a user-friendly interface and top-notch security features, iTrustCapital is a valuable resource for individuals who are looking to expand their investment options.

5. Best for Free Financial Planning For Multiple Accounts: Playbook

Playbook is a digital platform that offers personalized investment advice and tools to help individuals make informed decisions about their retirement savings. With a user-friendly interface and mobile app, you can easily manage your IRA investments from anywhere at any time. Whether you’re at home or on the go, Playbook makes it simple to monitor your retirement savings and make changes as needed.

It costs $29 per month for Playbook Essential or $59 per month for Playbook Plus, making it an affordable option.

Why We Love It: Playbook can automate savings optimization to minimize overall tax burden. By setting up automatic contributions to your retirement accounts, you can ensure that you are maximizing your potential tax savings and building your nest egg for the future.

What is an IRA?

An individual retirement account (IRA) is a special type of savings account designed to help you save for retirement while offering certain tax advantages. Its primary goal is to help your money grow over time, providing a source of income during your golden years.

Contributing to a traditional IRA may qualify you for tax deductions, depending on your income and eligibility. The money invested in a traditional IRA grows tax-deferred, meaning you only pay taxes on your investment earnings when you withdraw them in retirement. This tax deferral allows your money to compound faster compared to a taxable account.

Benefits of an IRA

• Contributions to a Traditional IRA are tax-deductible, leading to annual tax savings. The money in the IRA grows tax-deferred until withdrawals are made in retirement.
• IRAs enable investment in various assets to protect retirement savings from market changes and maintain a balanced portfolio.
• Contributing to an IRA can help build a substantial retirement savings through the power of compound interest, especially when started early and contributed to consistently.
• IRAs offer flexibility in fund access. For Traditional IRAs, penalty-free withdrawals start at 59 ½.
• IRAs can be part of your estate planning by naming beneficiaries who can inherit the funds. This is a way to ensure your loved ones are taken care of and benefit from your savings.

Which Type of IRA is Best?

Contributing to an IRA is an important step in securing your financial future, so it's essential to select the best option available. Here are the three common types of IRAs you can choose from.

• Traditional IRA: This retirement account lets you contribute money before taxes and delay paying taxes until you retire. Depending on your income and if you have a retirement plan at work, you might deduct your contributions from your taxable income.
• Roth IRA: With a Roth IRA, you contribute money after taxes and withdraw it tax-free in retirement. While you won't receive a tax deduction for your contributions, you also won't pay taxes on your investment earnings or distributions.
• Rollover IRA: A rollover IRA is a method of moving funds from another retirement account, like a 401(k) or 403(b), to an IRA. It helps consolidate your retirement savings and gives you greater control over investment choices.

Is a Roth IRA Better Than a Traditional IRA?

Choosing between a Roth IRA vs. traditional IRA depends on your current and future income tax rates and personal preferences. 

• A Roth IRA lets you contribute post-tax dollars and withdraw them tax-free in retirement. This feature is helpful if you expect to be in a higher tax bracket when you retire or want flexibility with withdrawals.
• A traditional IRA allows you to contribute pre-tax dollars, reducing your current tax bill. However, you'll pay taxes on withdrawals in retirement. It's advantageous if you expect to be in a lower tax bracket when you retire or want to lower your adjusted gross income (AGI) to reduce taxes.

Both types offer tax-deferred growth of investments but with different withdrawal rules. Roth IRAs have no required minimum distributions (RMDs), allowing you to keep money in the account indefinitely or pass it to heirs tax-free. Traditional IRAs have RMDs starting at age 72 (73 if you reach age 72 after Dec. 31, 2022), requiring you to withdraw a certain percentage annually and pay taxes on it.

How Do I Choose an IRA Account?

When choosing an IRA account, consider these factors.

• Account type: Decide between a traditional IRA, a Roth IRA and others based on your tax situation and preferences. 
• Contribution limits: The IRS sets annual limits on IRA contributions. For 2023, it was $6,500 ($7,500 for those 50 and older). In 2024, the limit increases to $7,000 ($8,000 for those 50 and older). These limits apply to all your IRA accounts combined.
• Investment options: Look for an IRA provider offering a variety of low-cost investment options like index funds, ETFs, stocks and bonds. Ensure they provide tools and resources for portfolio management, such as robo-advisors, financial planners and research materials.
• Fees and expenses: Seek providers with low or no commissions, account fees, transfer fees and management fees. Pay attention to fund expense ratios, ideally aiming for less than 0.5%.
• Customer service: Choose an IRA provider with customer service options that suit your preferences, whether it's live chat, phone support or email. Check its reputation through customer reviews, ratings, awards and complaints to ensure satisfactory service.

How to Open an IRA Account

To open an IRA account, follow these steps:

• Choose between a traditional or Roth IRA based on tax treatment
• Compare IRA providers
• Check minimum balance requirements before opening an account 
• Start investing in stocks and bonds once the account is open and the minimum balance is met

When Should You Open an IRA?

This will vary depending on your individual financial situation and retirement goals. But one of the best times to open an IRA is as soon as you start earning income. The earlier you start saving for retirement, the more time your investments have to grow. Even if you can only contribute a small amount each month, starting early can make a significant impact on your retirement savings over time.

Can I Switch my IRA?

Yes, you can switch your IRA to a new provider without penalty, but it must be to the same type of account. This process is called an IRA transfer and here’s how to do it:

• Contact the new provider and give them your details
• Fill out any necessary forms they provide
• Wait for the transfer to finish, which might take a while
• Check your new IRA to make sure the money is there

A Comprehensive Guide to IRAs

Whether you opt for a traditional or Roth IRA, choosing the right IRA account involves looking out for low fees, diverse investment choices and reliable customer support. Opening an IRA is straightforward — select a provider and meet minimum balance requirements and you’re good to go. Remember, planning for retirement wisely now can lead to financial security later on.

Frequently Asked Questions