What is the best broker to open an IRA with in 2026?

Fidelity is the best overall IRA broker in 2026 — it supports every IRA type, charges $0 commissions, has the only 0.00% expense ratio index funds (FZROX), and offers a 1% contribution match. For 401(k) rollovers specifically, Charles Schwab has the best rollover support process. For a completely hands-off automated IRA, SoFi and Schwab both offer free robo-advisors.

How much can I contribute to an IRA in 2026?

Roth IRA and Traditional IRA: $7,000/year ($8,000 if age 50+). This is a combined limit — you cannot contribute $7,000 to a Roth AND $7,000 to a Traditional in the same year. SEP IRA: up to $69,000 (or 25% of self-employment compensation, whichever is less). SIMPLE IRA: $16,000 ($19,500 if age 50+). Rollover IRA has no contribution limit — you're moving existing retirement funds, not adding new contributions.

What is the difference between a Roth IRA and a Traditional IRA?

Roth IRA: you contribute after-tax money now, and pay $0 taxes on growth or withdrawals in retirement. Best for investors who expect to be in a higher tax bracket in retirement than today. Traditional IRA: you contribute pre-tax money (tax deduction now), and pay income tax on withdrawals in retirement. Best for investors in a high tax bracket now who expect lower income in retirement. Traditional IRA also requires minimum distributions starting at age 73; Roth IRA has none.

What is a SEP IRA and who should use it?

A SEP IRA (Simplified Employee Pension) is a retirement account for self-employed individuals, freelancers, and small business owners. It allows contributions of up to $69,000/year (vs $7,000 for a Roth IRA) — making it the highest-contribution retirement vehicle for the self-employed. Contributions are pre-tax and tax-deductible. Fidelity and Schwab both support online SEP IRA opening with $0 minimums.

How do I roll over my 401(k) to an IRA?

Step 1: Open a Traditional IRA at your chosen broker (Schwab or Fidelity recommended). Step 2: Call your old 401(k) provider and request a direct rollover to your new IRA. Always request "direct rollover" — the check goes to your broker, not to you. Step 3: Wait 5–10 business days for funds to arrive. Step 4: Invest the cash in your chosen funds immediately. A direct rollover has no tax consequences and no contribution limit.

Can I have both a Roth IRA and a Traditional IRA?

Yes — you can hold both simultaneously, but the combined annual contribution limit is $7,000 ($8,000 if 50+). For example, you can contribute $4,000 to a Roth IRA and $3,000 to a Traditional IRA in the same year. You can also have an IRA at the same time as a 401(k) through your employer — the accounts are separate and independent.

Best Brokers for IRA Accounts 2026: Fidelity, Schwab, Vanguard & More

Quick Verdict — 2026 IRA Rankings

#1 Best overall

Fidelity

0.00% funds, 1% match, all IRA types

#2 Best for rollovers

Charles Schwab

Best 401(k) rollover support + free robo

#3 Best index fund IRA

Vanguard

VTI 0.03% — the buy-and-hold gold standard

#4 Easiest automated IRA

SoFi Invest

Open from $1, free robo-advisor, best mobile

#5 Best for BofA customers

Merrill Edge

Preferred Rewards + seamless BofA integration

Bottom line: For most investors, Fidelity is the best IRA broker — it supports every IRA type and its 0.00% expense ratio funds plus 1% contribution match create a meaningful long-term cost advantage. For 401(k) rollovers, Schwab edges ahead with dedicated rollover specialists. For a completely hands-off automated IRA from $1, SoFi is the easiest on-ramp.

Top 5 IRA Brokers (2026)

Ranked on IRA type coverage, fund costs, rollover support, robo-advisor quality, and platform experience. Updated March 2026.

#1 PickBest IRA Broker Overall

Fidelity

0.00% index funds · All IRA types · 1% contribution match

4.9 / 5

IRA Score

Fidelity is the best IRA broker for almost every investor type. It supports every IRA — Roth, Traditional, SEP, SIMPLE, Rollover, inherited — with no account minimum and $0 commissions. The ZERO expense ratio funds (FZROX and FZILX at 0.00%) are the lowest-cost index funds in existence. Add a 1% IRA contribution match on qualifying accounts and it's genuinely hard to beat.

Roth IRATraditional IRASEP IRASIMPLE IRARollover IRAInherited IRA

Highlights

FZROX / FZILX — 0.00% expense ratio funds

$0 account minimum across all IRA types

Up to 1% IRA match on qualifying contributions

Fractional shares on any US stock or ETF

24/7 customer support (phone + chat)

200+ branch locations for in-person help

All 6 IRA types supported

Limitations

FZROX/FZILX cannot be transferred to another broker

Robo-advisor charges 0.35% (not free like Schwab/SoFi)

Interface is functional but not as modern as SoFi

Open Fidelity IRA

#2Best for IRA Rollovers & Beginners

Charles Schwab

Free robo-advisor · 350+ branches · Best rollover support

4.8 / 5

IRA Score

Schwab is the top choice for rolling over a 401(k) to an IRA — their dedicated rollover specialists, streamlined transfer process, and 350+ branches make a normally complex transaction simple. The free Schwab Intelligent Portfolios robo-advisor (no advisory fee, ever) is also the best automated IRA option for hands-off investors. Every IRA type is fully supported.

Roth IRATraditional IRASEP IRASIMPLE IRARollover IRAInherited IRA

Highlights

Best 401(k) rollover experience — dedicated specialists

Free robo-advisor (Intelligent Portfolios) — $0 advisory fee

350+ branches for in-person IRA help

Schwab Bank integration — real checking + savings

$0 commissions, $0 account minimum

All IRA types including SEP and SIMPLE

Limitations

No 0.00% expense ratio funds (cheapest: SCHB at 0.03%)

Robo-advisor requires $5,000 minimum

FX conversion fees for international positions

Open Schwab IRA Affiliate link · we may earn a commission

#3Best for Index Fund IRAs

Vanguard

VTI 0.03% · VXUS 0.07% · Client-owned structure

4.5 / 5

IRA Score

Vanguard invented the index fund and its client-owned structure means fund profits are returned to investors as lower costs — the reason VTI (0.03%) and VXUS (0.07%) are the gold standard. For the investor whose entire strategy is 'buy VTI + VXUS and hold for 30 years inside a Roth IRA,' Vanguard is the natural home. The platform is dated but the fund economics are legendary.

Roth IRATraditional IRASEP IRASIMPLE IRARollover IRA

Highlights

VTI — 0.03% expense ratio (total US market)

VXUS — 0.07% expense ratio (total international)

Client-owned: profits returned as lower fund costs

All major IRA types supported

$0 commissions on Vanguard ETFs

DRIP and automatic investing available

Limitations

Platform UI significantly dated vs Fidelity and Schwab

Customer support slower than competitors

$1,000 minimum for Vanguard mutual funds

No fractional shares on individual stocks

Visit Vanguard

#4Easiest Automated IRA

SoFi Invest

Open from $1 · Free robo-advisor · Cleanest mobile IRA experience

4.4 / 5

IRA Score

SoFi removes every barrier to starting an IRA — $0 minimum, fractional shares from $1, and a completely free automated portfolio that builds and rebalances itself with no advisory fee. The mobile app is the cleanest IRA experience in this list. Ideal for hands-off Roth IRA investors who want to set it up in 5 minutes and never think about it again.

Roth IRATraditional IRA

Highlights

Start a Roth IRA from $1 — truly $0 minimum

Free automated ETF portfolio, $0 advisory fee

Auto-rebalancing built in automatically

Best-in-class mobile app experience

Integrated banking: checking, savings, loans, student

Fractional shares on any ETF from $1

Limitations

Only Roth and Traditional IRA — no SEP or SIMPLE

No rollover IRA support

Smaller fund and stock selection vs Fidelity

Less deep research tools

Open SoFi IRA Affiliate link · we may earn a commission

#5Best for Bank of America Customers

Merrill Edge

Preferred Rewards · Bank of America integration · Strong IRA research

4.2 / 5

IRA Score

Merrill Edge is the sleeper pick on this list. For Bank of America customers enrolled in Preferred Rewards, you get up to 100 free equity trades per month, the highest cash rewards rates on BofA credit cards (up to 5.25%), and seamless account integration between your IRA and BofA checking/savings. If you already bank with BofA, Merrill Edge makes the IRA a no-brainer extension of your existing relationship.

Roth IRATraditional IRASEP IRARollover IRAInherited IRA

Highlights

Preferred Rewards: up to 100 free trades/month for BofA customers

Instant money movement between BofA and IRA

BofA Preferred Rewards: enhanced cash back on credit cards

Strong IRA research — BofA Merrill research included

All major IRA types: Roth, Traditional, SEP, Rollover

$0 commissions on stocks and ETFs

Limitations

Only compelling if you bank with Bank of America

Platform less polished than Fidelity or Schwab

Robo-advisor charges 0.45% advisory fee

SEP IRA requires phone setup (not online)

Visit Merrill Edge

Best 401(k) Rollover Experience

Roll Over Your Old 401(k) to Schwab

Dedicated rollover specialists + 350 branches + free robo-advisor. Referral bonus may apply.

Open Schwab IRA

The 5 IRA Types Explained

"IRA" is not one account — it's a family of five distinct account types with different contribution limits, tax treatments, and ideal users. Most people only know Roth and Traditional. The SEP IRA is one of the most powerful retirement accounts available for the self-employed, and almost nobody uses it.

Roth IRA

Full guide →

Tax on contributionsAfter-tax dollars

Tax on growthTax-free

Tax on withdrawals100% tax-free (qualified)

2026 limit (under 50)$7,000

2026 limit (age 50+)$8,000

Required distributionsNone — ever

Best for: Most investors under 50, especially those expecting income to grow

Traditional IRA

Tax on contributionsPre-tax (may be deductible)

Tax on growthTax-deferred

Tax on withdrawalsTaxed as ordinary income

2026 limit (under 50)$7,000

2026 limit (age 50+)$8,000

Required distributionsAge 73

Best for: High earners in peak bracket expecting lower income in retirement

SEP IRA

Tax on contributionsPre-tax (employer contributions)

Tax on growthTax-deferred

Tax on withdrawalsTaxed as ordinary income

2026 limit (under 50)Up to $69,000

2026 limit (age 50+)Same ($69,000)

Required distributionsAge 73

Best for: Self-employed, freelancers, sole proprietors — max contributions

SIMPLE IRA

Tax on contributionsPre-tax (employee + employer)

Tax on growthTax-deferred

Tax on withdrawalsTaxed as ordinary income

2026 limit (under 50)$16,000

2026 limit (age 50+)$19,500

Required distributionsAge 73

Best for: Small businesses with employees (up to 100 workers)

Rollover IRA

Tax on contributionsPre-tax (from 401k or old plan)

Tax on growthTax-deferred

Tax on withdrawalsTaxed as ordinary income

2026 limit (under 50)No contribution limit

2026 limit (age 50+)No contribution limit

Required distributionsAge 73

Best for: Job changers moving old 401(k) balance to personal IRA control

2026 IRA Contribution Limits

IRA Type	Under 50	Age 50+	Income Limit	RMD Age
Roth IRA	$7,000	$8,000	$146K–$161K (single)	None
Traditional IRA	$7,000	$8,000	No limit (deductibility phases)	Age 73
SEP IRA	Up to $69,000	$69,000	No limit	Age 73
SIMPLE IRA	$16,000	$19,500	No limit	Age 73
Rollover IRA	No annual limit	No annual limit	No limit	Age 73

SEP IRA is massively underused. A self-employed person earning $100,000 can contribute up to $25,000 to a SEP IRA (25% of compensation), versus just $7,000 to a Roth IRA. If you have any self-employment income, a SEP IRA at Fidelity or Schwab is worth setting up immediately. The contributions are also tax-deductible.

Full Feature Comparison

Feature	Fidelity	Schwab	Vanguard	SoFi	Merrill
Roth IRA	✓	✓	✓	✓	✓
Traditional IRA	✓	✓	✓	✓	✓
SEP IRA	✓	✓	✓	✗	✓
SIMPLE IRA	✓	✓	✓	✗	✗
Rollover IRA	✓	✓	✓	✗	✓
Account minimum	$0	$0	$0	$1	$0
Zero-ER index funds	✓ FZROX 0.00%	✗ (0.03% min)	✗ (0.03% min)	✗	✗
Free robo-advisor	✗ (0.35% fee)	✓ $0 fee	✗ (0.20%)	✓ $0 fee	✗ (0.45%)
IRA contribution match	✓ up to 1%	✗	✗	✗	✗
Fractional shares	✓ all stocks/ETFs	✓ S&P 500 only	✓ ETFs only	✓ all ETFs	✗
Branch locations	200+	350+	Online only	Online only	BofA branches
Mobile app quality	★★★★☆	★★★★☆	★★★☆☆	★★★★★	★★★★☆
Rollover specialist support	★★★★☆	★★★★★	★★★☆☆	✗	★★★★☆
BofA Preferred Rewards	✗	✗	✗	✗	✓ up to 5.25%

Data as of March 2026. Verify directly with each broker before opening an account.

Best Broker for Each IRA Type

Roth IRARunner-up: Schwab

→ Fidelity

FZROX (0.00% ER) + 1% contribution match + fractional shares from $1. For cost-optimized Roth IRA growth over 30 years, Fidelity's zero-ER funds create a meaningful advantage.

Read: Best Brokers for Roth IRA

Traditional IRARunner-up: Schwab

→ Fidelity or Vanguard

Traditional IRA is about long-term tax-deferred compounding in low-cost index funds. Fidelity (FZROX 0.00%) and Vanguard (VTI 0.03%) both minimize the fund cost drag over decades. Schwab is solid too.

Roth vs Traditional IRA guide

SEP IRARunner-up: Schwab

→ Fidelity

SEP IRAs allow self-employed investors to contribute up to $69,000/year. Fidelity supports online SEP IRA setup, immediate investment access, and the full FZROX fund library. Schwab also supports SEP IRA with branch access for complex questions.

401(k) Rollover IRARunner-up: Fidelity

→ Charles Schwab

Schwab has the best 401(k)-to-IRA rollover experience: dedicated rollover phone line, clear step-by-step guidance, branch assistance, and fast transfer processing. The Schwab IRA rollover specialists handle the old plan paperwork with you.

For Bank of America customersRunner-up: Fidelity

→ Merrill Edge

BofA Preferred Rewards members get up to 100 free monthly trades, enhanced BofA credit card rewards (up to 5.25%), and seamless BofA-to-IRA fund transfers. If you already have BofA checking, Merrill Edge is the most economical IRA choice.

Full Merrill Edge Review

Automated / hands-off IRARunner-up: Fidelity Go

→ Schwab or SoFi

Schwab Intelligent Portfolios ($5K minimum, $0 advisory fee) and SoFi automated investing ($1 minimum, $0 advisory fee) are the two best free robo-advisors for IRA accounts. SoFi wins on minimum; Schwab wins on fund selection and control.

How to Roll Over Your 401(k) to an IRA (5 Steps)

The average American changes jobs 12 times in their career, leaving behind small 401(k) accounts at each employer. Rolling them all into one IRA gives you investment control, lower fees, and a simpler picture of your retirement savings. It's simpler than most people think — and completely tax-free if done correctly.

Open a Rollover IRA at your chosen broker

Open a Traditional IRA (or Rollover IRA) at Fidelity, Schwab, or your preferred broker. This takes 10–15 minutes online and requires $0 minimum deposit. Choose Traditional IRA to maintain the same tax-deferred treatment as your 401(k).

Contact your old 401(k) plan administrator

Call HR at your previous employer or the 401(k) plan provider directly (Fidelity Workplace, Vanguard, Empower, etc.). Request a direct rollover to your new IRA. Ask for a "direct rollover check" made out to your new broker, not to you personally.

Choose direct rollover — never indirect

There are two types: direct rollover (check sent to your new broker — no taxes withheld) and indirect rollover (check sent to you — 20% withheld, must deposit full amount within 60 days or owe taxes + penalty). Always choose direct rollover.

Confirm funds arrive and invest them

Rollover transfers typically take 5–10 business days. Once funds appear in your new IRA as cash, immediately invest them in your chosen funds — money sitting as cash inside an IRA earns almost nothing. Set a calendar reminder for the expected arrival date.

Verify the 1099-R and keep records

Your old 401(k) plan will send a Form 1099-R at tax time showing the rollover amount. If done correctly as a direct rollover, it should show code G in box 7 (direct rollover, no taxes owed). Keep this document — you'll need it when filing your tax return.

Critical: Never take an indirect rollover if you can avoid it

If you receive a check made out to you (indirect rollover), your old plan withholds 20% for taxes. To avoid taxes and the 10% early withdrawal penalty, you must deposit 100% of the original balance — including the 20% withheld — into your new IRA within 60 days. That means coming up with the withheld amount out of pocket.

Open a Schwab Rollover IRA