3-star brokerage firm rating

Traditional IRAs, Roth IRA, SEP, SIMPLE IRAs: fees, commissions, investment products. Advantages/pros and disadvantages/cons of opening IRA at USAA Investments.

  • IRA setup fee: $0
  • Annual IRA fee: $0
  • IRA termination fee: $20


USAA IRA Account Type Reviews

USAA Investments offers individual retirement accounts for individuals (Roth IRA and Traditional IRA) and self-employed or small business (SEP IRA and Simple IRA).

  • Roth IRA
  • Traditional IRA
  • Simple IRA
  • Transfers and rollovers


USAA Individual Retirement Account Fees

It is free ($0) to set up an USAA IRA account, and there is no annual IRA fee. There is a small charge of $20 for closing/termination the account. The fee does not apply to a full transfer of all assets and positions to another investment firm which is free.


Setting Up USAA IRA Accounts

Opening an IRA at USAA Investment is easy and straightforward. Set-by-step instructions are provided at the official website for each type of an account. The opening process of a new IRA account can be done completed online, when rollover and transfer might require a call to the institution, but not necessarily.

There is no chat system at their website, it's available within Memeber's area though. USAA Investments representatives can be reached via phone if any questions arise. USAA Investments received the highest point score in the annual J.D. Power Self-Directed Investors Satisfaction Study. USAA Investments is ranked even higher than Scottrade, the No. 1 in the survey. Yet, USAA Investments was not included in the final rankings. As it is noted on the official JDPower.com, USAA is open only to U.S. military personnel and their families, therefore, it is not included in the rankings. However, USAA Investment Services and Life Insurance are available to the military members and the general public.


Ways to Invest with USAA IRAs

There are several options available to invest within an USAA IRA account, and they are:

  • USAA Managed Portfolios. The service is offered to account holders with assets over $25,000. Well-diversified portfolio, professional guidance based on an individual's goals, time horizon, tolerance for risk and, of course, prompt assessments of U.S. and world economy.
  • USAA Bank CDs. CDs are FDIC-insured. Three types of CDs are offers Variable Rate CD (from 0.46 APY), Adjustable Rate CD (0.12-0.43% APY) and Fixed Rate CDs (0.76%-1.06$ APY). All three types require different minimum deposit and terms.
  • USAA Mutual Funds. Many of USAA mutual funds, based on their performance, rated 4 stars out of 5 by Morningstar. Some of the well-performed USAA mutual funds are Growth and Tax Strategy Fund, Intermediate-Term Bond Fund, Science & Technology Fund, World Growth Fund, High Income Fund, Value Fund and others.
  • Annuities. USAA Investments offers deferred annuities (Flexible Retirement Annuity (FRA) for assets of $5,000+, and Extended Guaranteed Annuity (EGA) for assets of $20,000+) and immediate annuities (Single Premium Immediate Annuity (SPIA)).
  • USAA Brokerage. USAA brokerage offers an investment account that allows its owner to invest/trade/buy/sell stocks, bonds, ETFs, USAA and non-USAA mutual funds.

Brokerage Account Within USAA IRAs

USAA brokerage account within an IRA allows invest into stocks, ETFs, options, mutual funds, bonds and other fixed income investment products. Low volume traders pay $8.95 per trade for stocks, when active traders and those investors with $50,000 or more in eligible assets pay only $5.95 per trade. The same goes for options trading -- a base charge of $8.95 or $5.95 plus $0.75 per contract.

Trading cost of no-load transaction fee funds is $45, which is considered a moderate fee. No-load no transaction fee funds are at no cost. Commissions for listed corporate bonds are $25 and $3 per bond. U.S. Treasury Securities at auction cost $45.


Is USAA Rollover Retirement Account Free?

For those people who would like to move their savings from an employer-sponsored retirement plan into an IRA account without paying penalties, or for someone who plan to convert traditional IRA and even a non-IRA USAA account into a USAA Roth IRA the company offers rollovers and transfers. Any household with income can convert a traditional IRA to a USAA Roth IRA, which does not required minimum distributions and provides potentially tax-free withdrawals in retirement.

It is absolutely free to rollover your funds (direct or indirect rollover) from your former employer's retirement plan. There are no fees or taxes for transferring funds directly or via check made out to USAA, which is considered a direct rollover. In case of an indirect rollover, which is a distribution made payable to you from your former employer's retirement plan that you deposit to an IRA or another, you will receive only 80% of your distribution and 20% must be withhold by employer's plan (not USAA!). In order to keep the whole distribution amount (100%) tax and fees free, you must add the missing 20% with your rollover deposit. Previously withheld 20% will be either applied to taxes you owe or returned to you directly form the IRS. From the day you receive money from the former employer, you have 60 days from to deposit 100% distribution amount to a new USAA IRA account to stay tax and fees free.

USAA Investments IRA Review Summary

No-fee USAA IRAs with a broad selection of investment products offered within an account, clear and straightforward fees and commissions is a good an easy way to get retirement savings on track and grow savings potentially.

A great selection of 4- and 5-star Morningstar rated USAA mutual funds and commission-free ETF are great way to significantly decrease the cost of investing. Not as many IRA providers provide this feature to customers.

USAA Investments is committed to providing good investment services to the military members and the general public. Their is no surprise the company was highly recognized by J.D. Power Self-Directed Investors Satisfaction Study. USAA with its no-fees IRA accounts, a wide variety of investments choices, great customer service and investment advice is a very strong contender that worth to look at.


Open USAA Investments IRA Account

Open USAA Account



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