T. Rowe Price IRA Fees For 2019

T. Rowe Price Roth IRA Fees, Traditional IRA, Rollover IRA, SEP IRA, 401K individual retirement accounts annual, opening/closing, transfer out fees charged. T. Rowe Price costs and investing commissions.

T. Rowe Price IRA Fees

T Rowe Price is a popular name in the mutual fund industry as the fund family offers some decent pooled investments to choose from. As is common among mutual fund managers, T Rowe Price also offers a brokerage service where you can open both taxable and retirement accounts, which can incur various costs and fees. This article will focus on the fees you might be charged as an IRA account holder at T Rowe Price.

Types of IRAs at T. Rowe Price

T Rowe Price offers the two primary types of IRAs – Traditional and Roth. To give a quick overview for newer investors, a Traditional IRA is where all of your contributions are made pre-tax, which means your taxable income in any year where you make a contribution is going to be lowered, providing you with tax savings. Once you reach retirement and begin withdrawing funds from your Traditional IRA, then you pay taxes on the full redemption amount – both the contributions and your capital gains.

The Roth IRA reverses the timing of the tax advantages of the Traditional IRA. With the Roth, you make contributions with income that you’ve already paid taxes on so there are not tax savings up front. However, once you retire and pull money out of your Roth IRA you won’t owe any taxes – not on the contributions or the capital gains. In short, the tax benefits of a Roth IRA make sense for those who expect to be earning considerably more later in life whereas the Traditional IRA is best for those that want to lower their current tax liability.

IRA Account Setup and Maintenance Fees

While some brokers will charge you fees for opening an IRA account, T Rowe Price is not one of them. They do charge a $20 annual account maintenance fee on all IRAs, however this can be easily waived by either choosing to receive electronic account statements (instead of paper ones) or maintaining an IRA account balance of at least $10,000.

IRA Closeout Fee

If you close your T Rowe Price IRA account, transfer it to another broker, or transfer it to a non-IRA account you will be charged a $20 closing fee. This will be waived if you have already paid the $20 account maintenance fee for that calendar year.

T. Rowe Price IRA Trading Costs

Depending on what types of instruments you plan to trade in your IRA and how frequently you trade you could generate significant trading costs. T Rowe Price offers more than one hundred target date retirement funds and mutual funds spanning equities and fixed income markets, many of which do not have a load fee but do still have expense ratios.

If you plan to trade individual stocks and bonds within your IRA you should be prepared to incur trading costs that exceed what you would pay with most brokers. For example, individual equity trades cost $19.95 each, and this is only lowered to $9.95 if you have an account balance above $250,000 or place at least 30 trades a year.


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