Charles Schwab rating

Charles Schwab IRA Fees in 2019


Charles Schwab Roth IRA Fees, Traditional/401K Rollover IRA, SIMPLE/SEP individual retirement accounts annual, opening/closing, transfer out charges, costs, and investing commissions

Charles Schwab IRA Fees

  • IRA setup fee: $0
  • Annual IRA fee: $0
  • IRA termination fee: $0
  • Transfer (out) of assets: $50 for full account transfer, $25 for partial account transfer

At Schwab, there are no special fees for any account. An IRA comes with no setup fee, no annual charge, no account maintenance fee, and no inactivity fee. The broker also has no fee to close any account.

In order to open an IRA, investors must deposit at least $1,000. The Custodial IRA is exempt from this policy. It requires only a $100 opening deposit. The $1,000 opening requirement for non-Custodial IRA's can be eliminated by signing up for automatic $100 deposits every month.


Charles Schwab IRA Trading Fees
Charles Schwab’s standard commission schedule is valid for all accounts, including IRA's. Stock and ETF trades are $4.95 when executed on-line. The broker also provides living human brokers over the phone to assist clients in placing a trade. This service costs an additional $25. Investors who don't want to pay that much, but still want to trade over the phone, can use Schwab's automated phone system, which tacks on only $5 extra.

Schwab offers retirement savers a lot in the mutual fund category. Many of these funds cost nothing to trade. The firm has over 3,500 OneSource funds, which carry no load and no transaction fee. In total, there are over 5,000 mutual funds available at Schwab. Clients must pay a rather uncomfortable $76 to buy mutual funds that carry a transaction fee. Fortunately, there is no charge to sell a transaction-fee fund. Funds without a transaction fee do carry a charge of $49.95 if they are held for less than 3 months.

The broker manages its own selection of target date mutual funds. These products are designed for retirement savers, and come with no load and no transaction fee. They become more conservative as the target date approaches, which is the expected date of retirement. Non-Schwab target funds are also available.

Investors also have access to over 200 exchange-traded funds at Schwab without any commissions. Most of these ETF's have expense ratios that are lower than the funds on Schwab's OneSource mutual fund list. Some of the ETF's have portfolios that retirees will be interested in, such as investment-grade bonds and REIT's.


Charles Schwab IRA Fees Comparison

Several of Schwab's competitors, such as TD Ameritrade and Fidelity, don't require a minimum deposit to open an IRA. Charles Schwab's $1,000 requirement is somewhat unusual nowadays. On the flip side, Schwab has more mutual and exchange-traded funds that are free to trade compared to what other brokers offer. For example, E*Trade both have fewer free-to-trade funds. Schwab's no-fee closeout policy is better than Merrill Edge, who charges $49.95.

Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Options
Commission
Maintenance
Fee
Annual IRA
Fee
Firstrade $0 $0 $0 + $0 per contract $0 $0
Ally Invest $4.95 $9.95 $4.95 + $0.65 per contract $0 $0
TD Ameritrade $6.95 $49.95 $6.95 + $0.75 per contract $0 $0


Charles Schwab IRA Review

Read full Charles Schwab IRA Review


Charles Schwab IRA Review
Charles Schwab offers an array of brokerage services at reasonable cost to investors. With high-quality trading tools, low expenses, a wide selection of investment products, and a history of pleased customers, Charles Schwab’s financial services are a safe bet.


IRA's at Charles Schwab
Retirement savers at Charles Schwab can choose from several different types of IRA’s. The broker offers Roth, Traditional, Inherited, Custodial, and Rollover accounts. Customers who have questions about an IRA or need assistance opening one can contact a Schwab retirement specialist over the phone.


Funds for IRA's
Retirees who want to avoid the above commissions should check out Schwab's list of NTF mutual funds. There are over 3,500 OneSource funds, which carry no load and no transaction fee. In total, Schwab offers over 5,000 mutual funds. Transaction-fee funds cost $76 to buy, although they are free on the sell side.

Charles Schwab manages its own collection of target date mutual funds. These products are designed for investors saving for retirement. The funds are no-load, no-transaction-fee products. Target date funds from other companies are also available with the broker.

Schwab clients can trade over 200 ETF's without any commissions. Several of these ETF's have expense ratios lower than the broker's NTF mutual funds.


Charles Schwab IRA


IRA Tools, Calculators, and Learning Materials
The Charles Schwab website has an IRA calculator to help retirement savers determine when distributions must be taken under IRS guidelines. There is another calculator that evaluates the option of changing a Roth account to a Traditional.

Investors at Charles Schwab have access to an excellent library of informational videos on the broker's site that covers important retirement issues. These include topics such as how to transition from a 401(k) to a Roth account, recharacterization of an account, and how to use an IRA for estate planning.

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