Best Roth IRA Accounts

Best Roth IRA Accounts for Better Retirement (2021)

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The best Roth IRA accounts can help you achieve your retirement goals.

A Roth IRA is possibly one of the most understated retirement power tools. It’s often misunderstood and confused with traditional IRAs and 401(k)s. In short, a Roth IRA offers a tax-free income in your retirement. Once you’ve reached the IRS retirement age of 59.5 years old and have held the account for five years, your distributions from the account are entirely tax-free.

Welcome to the phroogal 5, a series of the five best apps. We’ve done the work to narrow down the best choices. Want more options? Check the marketplace.

With Roth IRAs, you have a wide range of account options from do-it-yourself management or using a Robo-advisor or an investment advisor.

In this article, you’ll learn the best Roth IRA account to meet your needs.

Best Roth IRA Accounts

Roth IRA AccountFeaturesBest For
BettermentTotal investment management for 0.25% per yearHands-off investing
M1 FinanceRecommended mini-portfolios of stocks and ETFsNo-fee Investing
AcornsAutomated portfoliosBeginners
WebullMake zero-commission trades of stocks and ETFsActive investors
Personal CapitalTraditional human advisor Full management
StashStart with just $0.01Getting started
BlooomIRA and 401(k) analysis Low-cost retirement fund management

We chose apps from popular companies for beginners and seasoned investors alike.

Betterment: Best for hands-off investing

Betterment is a Robo-advisor offering Roth IRAs for people who want a managed retirement portfolio with minimal work.

  • Managed based on your age and goals.
  • Automatic allocation adjustments and rebalancing.
  • Tax coordination to lower tax liability.

Minimum: $0
Transaction Fee: $0
Management Fee: 0.25-0.40% assets under management

Read Betterment Roth IRA review.

M1 Finance: Best for No-fee investing

M1 Finance is a DIY online brokerage made for passive investors who customize or copy expert portfolios.

  • Choose stocks, ETFS, and fractional shares.
  • Automate your deposits and investments.
  • Use Dynamic Rebalancing to keep you target asset allocation.

Minimum: $0
Transaction Fees: $0
Management Fee: $0

Read the M1 Finance Roth IRA review.

New account promo: New M1 Finance users get up to $150 when depositing $1000 or more.

Acorns Later: Best for beginners

Acorns is a Robo-advisor and micro-savings app offering Roth IRAs. You can invest your spare change automatically through its Acorns Round-Up feature.

  • Automate your deposits with recurring contributions.
  • Managed and optimized based on your age and time horizon.
  • Diversified portfolio of exchange-traded-funds.

Minimum: $0
Transaction Fee: $0
Management Fee: $3 per month

Read the Acorns Later Roth IRA review.

New Account Promo: Get a $5 bonus after your 1st investment.

Webull: Best for active investors

Webull Roth IRAs are for do-it-yourself investors who want to trade stocks and ETFs using a Roth account actively.

  • Robust platform giving you options to invest yourself.
  • Full extended trading hours (pre- and after-market).
  • Free real-time quotes to access up-to-minute market data.

Minimum: $0
Transaction Fee: $0
Management Fee: $0

Read the Webull IRA review.

New Account Promo: Receive 2 free stocks with a new brokerage account.

Personal Capital: Best for full management

Personal Capital offers complete wealth management services giving you access to human advisors. Speak with a financial expert to help you create your retirement plan, including Roth IRAs.

  • Smart weighting to limit exposure to any sector.
  • Tax optimization strategy to minimize your taxes.
  • Intelligent rebalancing and dynamic portfolio allocation.

Minimum: $100,000
Transaction Fee: $0
Management Fee: 0.89% ($100K managed)

Read the Personal Capital review.

Why invest using a Roth IRA?

Investing using a Roth IRA is an excellent tool for your retirement savings. However, you must have earned income and meet the income limits. There are vital benefits to using Roth IRAs, including tax-free growth, tax-free withdrawals in retirement, the ability to withdraw contributions for any reason without penalty, and no required minimum distributions.

Is Roth IRAs a bad idea? The only negative of using Roth IRAs is contributing post-tax money, and depending on your income, you may not be eligible. Review the IRS Roth contribution limits.

Additional Reading

The following two Roth IRA accounts can also be great options for you.

Stash: Best for beginners

Stash Retirement accounts offer Roth IRAs for the DIY investor who is simply starting. You maintain control over your investments and choose stocks, ETFs and decide on thematic-based investing.

  • Low cost retirement with in-app educational services.
  • Fractional shares start at $0.05.
  • Invest automatically to reach your goals.

Minimum: $0.01
Transaction Fee: $0
Management Fee: $3 per month

Read the Stash Retirement review.

New Account Promotion: Get $20 for signing up for a new account.

Blooom: Best IRA management

Blooom is a tool created by financial experts to help you analyze and manage retirement accounts. You can learn how to optimize your existing retirement plans with ease.

  • View all your retirement accounts in one place and see how you’re doing.
  • Optimze your plans with personalized fund recommendations.
  • Get portfolio monitoring and allocation adjustments.

Minimum: $10
Transaction Fee: $0
Management Fee: $120 per year

Read the Blooom Review.

New Account Promotion: Get a free analysis of your 401(k) and IRA.

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