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14 Best IRA Accounts of June 2020

Andrea CoombesJune 2, 2020

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An individual retirement account, or IRA, is one of the best places to save for retirement — the tax benefits can give your savings a nice lift. And, spoiler alert: It typically takes just 15 minutes to open an account. We’re here to help you find the best IRA for your situation.

How (and why) to open an IRA

Opening an IRA is a simple process. You’ll need to provide some personal information, including your birthdate and Social Security number, but that’s about it.

Even if you have a 401(k) or other workplace plan, it can make sense to save in an IRA — as long as you also make sure to get any company 401(k) match you may be offered — because IRAs often offer more investment choices. This is important, because your investment returns will have a big impact on your savings over time.

Say you put $500 every month into an IRA (that adds up to the annual maximum of $6,000). The stock market’s annual average return of 8% would get you more than $475,000 after 25 years. Even if you earned a more conservative 6%, you’d end up with more than $345,000 after 25 years.

Every year, we evaluate a broad swath of major U.S. online brokers and robo-advisors for the best IRA account offerings. Our favorites are below. (Note: The star ratings on this page are for the provider overall. Some brokers with a lower overall rating are included here because IRAs are where they excel.)

Summary of Best IRA Accounts of June 2020

BrokerNerdWallet Rating CommissionsPromotionAccount MinimumLearn More
E*TRADE IRA

E*TRADE IRA

Best for: Hands-On Investors

$0

per trade

None

no promotion at this time

$0

Read review
Ellevest

Ellevest

on Ellevest's website

Best for: Hands-Off Investors

0.25%

management fee

1 month free

of Ellevest Digital

$0

on Ellevest's website

Betterment IRA

Betterment IRA

on Betterment's website

Best for: Hands-Off Investors

0.25%

management fee

Up to 1 year

of free management with a qualifying deposit

$0

on Betterment's website

SoFi Automated Investing

SoFi Automated Investing

on SoFi Invest's website

Best for: Hands-Off Investors

0%

management fee

Free

career counseling plus loan discounts with qualifying deposit

$0

on SoFi Invest's website

You Invest by J.P.Morgan

You Invest by J.P.Morgan

on You Invest by J.P.Morgan's website

Best for: Hands-On Investors

$0

per trade

Up to $725

when you open and fund a new account with $25,000 or more in new money

$0

on You Invest by J.P.Morgan's website

Our pick for

Hands-On Investors

E*TRADE IRA

E*TRADE IRA

Fees

$0

per trade

Account Minimum

$0

Promotion

None

no promotion at this time


Promotion

None

no promotion at this time

Why we like it

Retirement investors will find a lot to love with E*TRADE’s IRA offering, including a large line-up of no-trading-fee mutual funds and an extensive library of retirement advice and tools. Plus, there’s no minimum account balance and no fee for stock or ETF trades.

Pros

  • No minimum balance.

  • Extensive research and tools.

  • Commission-free stock, ETF and options trades.

  • 4,400+ no-transaction-fee (NTF) mutual funds.

Cons

  • $19.99 cost for trading non-NTF mutual funds.

Read Full Review

Our picks for

Hands-Off Investors

Ellevest

on Ellevest's website

Ellevest

Ellevest

Fees

0.25%

management fee

Account Minimum

$0

Promotion

1 month free

of Ellevest Digital

on Ellevest's website


Promotion

1 month free

of Ellevest Digital

Why we like it

This advisor markets itself to women and takes a goal-focused approach that factors in women’s lower incomes, lifetime earnings and longer lifespans. With its $0 account minimum, competitive advisory fees (ranging from 0.25% - 0.5% of assets) and unlimited access to financial advisors (Premium clients can talk to CFPs), Ellevest is an appealing choice for investors of any gender.

Pros

  • Low account minimum and fees.

  • Goal-focused investing approach.

  • Portfolio mix that factors women’s needs.

Cons

  • Few accounts supported.

  • No tax-loss harvesting.

Read Full Review
Betterment IRA

on Betterment's website

Betterment IRA

Betterment IRA

Fees

0.25%

management fee

Account Minimum

$0

Promotion

Up to 1 year

of free management with a qualifying deposit

on Betterment's website


Promotion

Up to 1 year

of free management with a qualifying deposit

Why we like it

With its low-cost ETFs, automatic rebalancing, extensive tax strategies and retirement advice, Betterment is a strong bet for retirement investors. Betterment’s planning tools include advice on “asset location” — which types of investments are best for different types of accounts — and investors can sync outside accounts, as well.

Pros

  • Multiple investment options.

  • Robust goal-based tools.

  • Fractional shares mean all your cash is invested.

  • Low management fee.

Cons

  • $100,000 minimum and higher fee for access to financial advisors.

Read Full Review
SoFi Automated Investing

on SoFi Invest's website

SoFi Automated Investing

SoFi Automated Investing

Fees

0%

management fee

Account Minimum

$0

Promotion

Free

career counseling plus loan discounts with qualifying deposit

on SoFi Invest's website


Promotion

Free

career counseling plus loan discounts with qualifying deposit

Why we like it

SoFi Automated Investing is great for beginning, cost-conscious investors who favor a hands-off approach. Plus, as a customer, you could be eligible for bonuses on other SoFi products.

Pros

  • Broad range of low-cost investments.

  • Free management.

  • Automatic rebalancing.

  • Customer support.

  • Access to certified financial planners.

Cons

  • Limited account types.

  • No tax-loss harvesting.

Read Full Review

Our pick for

Hands-On Investors

You Invest by J.P.Morgan

on You Invest by J.P.Morgan's website

You Invest by J.P.Morgan

You Invest by J.P.Morgan

Fees

$0

per trade

Account Minimum

$0

Promotion

Up to $725

when you open and fund a new account with $25,000 or more in new money

on You Invest by J.P.Morgan's website


Promotion

Up to $725

when you open and fund a new account with $25,000 or more in new money

Why we like it

You Invest Trade is a clear-cut investment platform that is great for beginners looking to learn how to buy and sell investments. More advanced investors, however, may find it lacking in terms of available assets, tools and research. INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Pros

  • Easy-to-use platform.

  • $0 commissions.

  • App connects all Chase accounts.

  • No account minimum.

Cons

  • Limited tools and research.

  • Portfolio Builder tool requires $2,500 balance.

Read Full Review

Note: Some of these promotions won’t apply for first-time depositors, due to IRA contribution limits of $6,000 per year in 2020. We’ve included promotions with low deposit requirements where available.

Last updated on June 2, 2020

Methodology

NerdWallet's ratings for brokers and robo-advisors are weighted averages of several categories, including investment selection, customer support, account fees, account minimum, trading costs and more. Our survey of brokers and robo-advisors includes the largest U.S. providers by assets under management, plus notable and/or emerging players in the industry. Factors we consider, depending on the category, include advisory fees, branch access, user-facing technology, customer service and mobile features. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

To recap our selections...

NerdWallet's Best IRA Accounts of June 2020

Frequently asked questions