A Roth IRA is the single best retirement account most Americans can open. Contributions are after-tax, but all growth and withdrawals in retirement are tax-free — which means a $7,000 contribution at age 30 grows to ~$112,000 at 65 (assuming 7% real return), and you owe zero tax on any of it. The 2026 contribution limit is $7,000/yr ($8,000 if you're 50+). The hard part isn't the math — it's picking where to open it. Here are the 5 brokerages worth considering.
The 5 worth opening at
| Brokerage |
Account fee |
Best fund |
Best for |
| Fidelity |
$0 |
FZROX (0.00% expense) |
Most users |
| Vanguard |
$0 |
VTI (0.03%) |
Index purists |
| Charles Schwab |
$0 |
SCHB (0.03%) |
Schwab loyalists |
| Wealthfront |
0.25%/yr |
Diversified ETF portfolio |
Hands-off |
| Betterment |
0.25%/yr |
Diversified ETF portfolio |
Hands-off alternative |
Best overall — Fidelity
EDITOR'S PICK
Fidelity Roth IRA
$0 account fees, $0 trading commissions, no minimums. Offers FZROX (Fidelity ZERO Total Market Index Fund) at 0.00% expense ratio — literally free to hold. Strong mobile app, good research tools, integrated cash management. Best blend of features + cost in 2026.
Visit Fidelity →
Best for purists — Vanguard
The OG of low-cost indexing. Founded the modern index fund category. VTI at 0.03% is essentially identical to FZROX in performance.
The case against Vanguard: their UX feels older than the others. Mobile app works but isn't best-in-class.
Best hands-off — Wealthfront
If you don't want to pick funds, Wealthfront's 0.25%/yr fee gets you a fully diversified ETF portfolio with automatic rebalancing and tax-loss harvesting. Worth the 0.25% drag for genuinely hands-off investors.
The boring portfolio that wins
For 90% of Roth IRA holders, the right portfolio is one of these:
Two-fund (simplest):
- 80% VTI (Total US Stock Market) or FZROX
- 20% VXUS (Total International Stock Market)
Three-fund (classic):
- 60% VTI / FZROX
- 30% VXUS
- 10% BND (Total Bond Market)
Total expense ratio: ~0.03–0.05%. Total time required to manage: ~10 minutes/year for rebalancing.
This beats 90% of actively-managed funds and 100% of stock-picking strategies over 30+ years. We covered the math in What 1% fees really cost over 30 years.
Roth IRA basics in 2026
- Contribution limit: $7,000/yr ($8,000 if 50+)
- Income limit: Single filers phase out at $146,000–$161,000; married filing jointly $230,000–$240,000
- Withdraw your contributions (not earnings) anytime, tax-free
- Withdraw earnings tax-free after age 59½ AND 5+ years since first contribution
- No required minimum distributions — let it grow as long as you want
What's NOT worth your money
- Roth IRAs at brokers charging account maintenance fees ($25–75/yr) — the big four are all $0
- Actively-managed mutual funds inside a Roth IRA — fees compound tax-free for you to pay; pick index funds
- Annuities or insurance products marketed as "Roth-like" — different products, usually worse, often very expensive
- Roth IRAs at banks that mostly hold CDs — equity exposure is what makes Roth's tax-free growth meaningful
- "Self-directed Roth IRA" with crypto/real estate unless you genuinely know what you're doing — $300+/yr custodian fees + complexity
FAQ
Roth IRA vs Traditional IRA — which is better?
Roth if you expect to be in a higher tax bracket in retirement than now (most younger savers). Traditional if you expect to be in a lower bracket later (high earners near retirement). For most under-40 savers: Roth.
Can I have both a Roth IRA and 401(k)?
Yes. The contribution limits are independent. Common strategy: max 401(k) match → max Roth IRA → return to maxing 401(k).
Can I withdraw money from a Roth IRA early?
You can withdraw your contributions (not earnings) anytime, tax-free. Withdrawing earnings before 59½ usually triggers tax + 10% penalty (with exceptions for first home purchase, education, etc.).
What's the income limit for a Roth IRA in 2026?
Single: phase-out begins at $146,000, fully ineligible at $161,000. Married filing jointly: phase-out at $230,000, ineligible at $240,000. Above these thresholds, look up "backdoor Roth IRA".
How long does it take to open a Roth IRA?
15–30 minutes online at any of the four big brokers. Funding takes 3–5 business days for ACH transfer.
Should I max contribute or invest as I earn?
For most: max early in the year if you can afford it (more time for tax-free growth). If cash flow makes that hard, automatic monthly contributions ($583/mo to hit the $7,000 limit) work fine.
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