2019 USAA rates and fees on ROTH IRA, Sep/Simple IRA, traditional IRA accounts. USAA retirement account annual, maintenance, inactivity, termination charges schedule.

USAA IRA's

USAA is a respected financial services company that has been in business for nearly 100 years and offers a broad line of insurance and investment products including Individual Retirement Accounts (IRA). It should be noted that investors must be members of USAA. Membership is limited to those who serve or have served in the military, plus certain family members of those service members. Below is a summary of USAA's IRA fees and commissions along with a comparison with other leading brokers.

USAA does not charge a fee to set up an IRA but does charge a $35 fee to close an account. There are no annual fees or custodial fees for an IRA, nor are there account maintenance or inactivity fees.


USAA IRA Commissions

ProductPrice
Stocks and ETFs $8.95
Stocks and ETFs broker assisted $50 (an additional $0.005 is charged for each share over 1,000)
Options $8.95 + $0.75
Mutual Funds $45
U.S. Treasury Securities at Auction $45

USAA customers pay $8.95 per trade in stocks and ETFs. However, certain ETFs may be traded with no commissions. Options are priced at $8.95 plus $0.75/contract, subject to a minimum $25 commission.


USAA IRA Fees Comparison

Here's how USAA's IRA commissions and fees compare with three leading brokers: TD Ameritrade, Firstrade, and Ally Invest.

Commission/Fee USAA TD Ameritrade Firstrade Ally Invest
IRA Setup$0$0$0$0
IRA Closing$35$0$50$50
Annual Fee$0$0$0$0
Custodial Fee$0$0$0$0
Account Maintenance Fee$0$0$0$0
Inactivity Fee$0$0$0$0
Stock/ETF Commissions$8.95$6.95$0$4.95
Options Commissions$8.95 + $0.75/contract$6.95 + $0.75/contract$0 + $0/contract$4.95+ $0.65/contract
Mutual Funds Commissions$45$49.99$9.95$0
Broker-Assisted Commissions$70$44.99$25$20 + regular commissions
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USAA Mutual Fund Commissions

All USAA funds are no load, although some carry a transaction fee. USAA and non-USAA mutual funds that carry a transaction fee are $45 to buy and sell. Using a representative to place a mutual fund trade does not cost anything extra. USAA mutual fund commission is higher than some other online brokers, including Ally Invest ($9.95).


USAA Mutual Fund Fees

There are different minimum initial purchase amounts for different USAA funds. One fund, UMAFX, requires no minimum purchase amount; while several others have a $1,000,000 minimum. Many of the company's mutual funds maintain a $3,000 buy-side requirement. Alternatively, investors can sign up for automatic purchases of $50 or more per month. Doing so waives the initial minimum purchase requirement.

Other fund families that are available through USAA establish their own initial purchase requirements. Some of these are as low as $0 and as high as $200,000,000. Some of the funds that have a zero initial purchase amount include Putnam, MassMutual, PNC, and Columbia.

USAA does not charge a short-term redemption fee for mutual fund sales within a certain time frame. However, individual mutual funds may. For example, some American Century funds that are available through the USAA Fund Marketplace do charge 2% when they are sold in less than 60 days after acquisition. Be sure to check the prospectus before making a purchase of any specific fund.

The USAA website has a mutual fund screener that returns several USAA-branded mutual funds. Funds from other families are not included in these results, although a separate Fund Marketplace is available with thousands of funds from several different families, including Fidelity, Janus, Vanguard, and others.

Mutual fund results can be sorted by several criteria, including Morningstar rating, manager tenure, 10-year performance, expense ratio, and category. More than 15,800 funds in total are available through USAA. This number is significantly higher than what is available at other brokerage houses, including Merrill Edge and E*Trade. Only Vanguard has more funds.

A wide variety of mutual fund types are available with USAA. The broker has several target-date funds, for example. These are designed for retirement savers. There are also sector funds that focus on specific areas of the economy. There are USAA money market funds, bond funds, stock funds, and index funds. Some products are tax exempt, which is great for investors who are in a higher tax bracket.

Over 2,100 mutual funds at USAA carry neither transaction fee nor load. This selection is larger than Capital One Investing and Firstrade. Compared to Fidelity and TD Ameritrade, USAA seems to have less information on fund trading.


Disclaimer

For the most recent information on USAA IRA fees (ROTH, Simple, SEP, traditional IRA accounts) visit their website.


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