6 Best IRA Accounts

Having an IRA is beneficial for everyone, but the importance of IRAs only increases as people get older and reach retirement age. 

I've researched the best IRA accounts strictly to benefit people interested in doing more with their retirement plans. 

Best Overall
M1 logo
Editor's Rating    5/5

M1 Finance offers multiple benefits for season investors while also being extraordinarily beginner-friendly.  They are my #1 recommended IRA account for beginners.

Best for Automated Investing
Betterment logo
Editor's Rating    4.5/5

Betterment is easy to use and beginner-friendly. If you’re just getting started, Betterment is the way to go. If you want automated investing, this company is your best option.

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In my research for the best retirement plans, I began to look more into individual retirement accounts, or IRAs. IRAs allow tax-deferred investments to provide personal financial security upon their retirement.  

It's vital to choose the right company to protect your assets and ensure that your money will grow by retiring. Typically, retirement plans like a 401(k) are tied directly to the stock market and low-risk investments.

While it's a good idea to have money in low-risk investments, it limits your money and restricts how much you'll make from these investments.

Crypto investments, for example, aren't going to be included in your 401(k), but can be part of your IRA.  While volatile investments may not sound appealing to you, other investment options such as gold have proven to retain value and continue to grow in value. 

IRAs award you more money for learning how to invest and understanding the value of your money. Keeping track of your investments allows you to impact your financial security as an IRA account holder.

The Best IRA Accounts for 2022

Comparison of the Best IRA Companies

#1
M1 logo

Our Partner

M1 Finance is an all-in-one money management platform that helps self-directed investors achieve long-term financial wellness.

#2

Betterment can help grow your money by making saving and investing easy. Invest in a tailored portfolio, set buckets for your goals, and earn rewards.

#3
Goldco logo

Our Partner

Goldco is a leader in the precious metals industry, with over a decade of experience helping customers protect their retirement savings.

#4
Bitcoin IRA logo

Our Partner

Goldco is a leader in the precious metals industry, with over a decade of experience helping customers protect their retirement savings.

#5

Capitalize is a free service that can help you rollover your 401(k) into an IRA with the provider of your choice.

#6

With a self-directed IRA from Alto, you can invest your retirement money in alternative assets. Things like startups, crypto, and more!

Methodology

The criteria I'm using involve account fees, investment selections, customer reviews, account minimums, and customer support. The companies I've chosen provide an extensive amount of services to clients. 

Customer service is also critical, and the lack of assistance given to each person may lead to poor financial decisions. Therefore my criteria will also weigh client experiences with the companies. 

Diversity in investment options is something that I’m taking into account. Companies that can provide a wide variety of investment options are important for a rich and diverse portfolio.

1. M1 Finance - Best Overall

M1 Finance was founded in 2015 by Brian Barnes. M1 shifts its focus strictly to the investor. The automation tools they offer help each investor manage their money and grow their portfolio the way they want it to grow. 

Pros

  • No trading or account management fees
  • Automated investment options
  • Portfolio control and customization

Cons

  • Limited assistance from financial advisors
  • Limited financial tools

2. Betterment - Best for Automated Investing

Jon Stein founded Betterment in 2008. Betterment is a company that promises its client an easy-to-use amount of investing experience.

The company focuses on making investing automated and easy to understand, allowing anyone to follow and understand their IRA. 

Pros

  • No IRA account minimums
  • Hands-off investing
  • Upgradable plans

Cons

  • High consultation fees
  • Investment options are entirely tied to ETF options only.

3. Goldco - Best for Gold IRAs

Goldco was founded in 2006 by Trevor Gerszt. Goldco provides an excellent customer service experience for all clients interested in IRAs based in the precious metal investment industry. 

Pros

  • Top-tier customer support
  • Low fees
  • Transparency to clients

Cons

  • It has a significantly high minimum investment fee of $25,000.
  • No online account option

4. Bitcoin IRA - Best for Crypto IRAs

Bitcoin IRA was founded in 2015 by Chris Kline, Johannes Haze, and Camilo Concha. Bitcoin IRA focuses on simplifying crypto investments and IRAs. 

Their goal is to be completely transparent with the process and assist their client as best as possible. 

Pros

  • IRA rollover options
  • It's U.S. regulated
  • Can earn interest

Cons

  • Minimal cryptocurrency selection
  • High fees

4. Capitalize - Best for 401(k) Rollovers

Capitalize was founded in 2020 by Gaurav Sharma and Chris Phillips. Sharma and Phillips both believe saving for retirement is too complex and want to streamline the process. 

Capitalize's goal is to help people roll over their 401(k) into an IRA.  Customers emphasize the ease of use and quality of service they receive from the company. 

They underline that rolling over their 401(k) has never been a more straightforward process with the help of Capitalize. 

Pros

  • Amazing guidance
  • No hidden fees
  • Simplifies the complicated and tiresome rollover process.

Cons

  • A customer service line doesn't exist
  • It is limited to 401(k) rollovers

6. Alto IRA - Best for Self-Employed

Alto IRA was founded in 2015 by Eric Satz. Alto IRA focuses on providing different investment options for each account holder. 

The flexibility of Alto gives users, especially self-employed users, the freedom to invest in real estate, crypto, and other alternative assets. 

Pros

  • No hidden fees
  • Alternative investment options
  • Great customer service

Cons

  • 7-day hold period before being able to invest
  • Customer support is limited to business days

How to Open an IRA Account

Opening an IRA account may sound daunting, but it's relatively straightforward.  The first step to opening an IRA account is finding the right financial institution that will help you set up your IRA account.

The businesses I listed and researched are excellent places to start your search for a financial institution.  Once you've decided who you're going to open your account with and who will manage your IRA investments, you'll have to choose an account type.

There are multiple account types, but typically the average person will look at a traditional IRA or a Roth IRA. Opening and funding your IRA account is very basic. 

Once you've registered your account and picked your account type, you'll want to begin to fund your account. You'll follow a routine and set up a method of funding. 

Additionally, you may choose to discuss investment options with your financial institution that handles your IRA unless your investments are automated and you choose not to interact with them.

How to Pick the Best IRA Company

Picking the best IRA company is difficult because of the number of options. I've done substantial research to ensure that you can make an informed decision on the institution you choose. 

Depending on what you personally value, you’ll want to start there. For example, do you value portfolio diversity and options? If so, you may want to consider companies that give their clients numerous investment options. 

Having first-hand accounts with this business, you may want to look at how these companies interact with their clientele. For example, do they help each client understand what an IRA is and help them understand any risks that could happen?

Choosing any option on this list will allow you peace of mind that your IRA will thrive and grow throughout your years, but I recommend paying heavy attention to other people's experiences if you want to do your research.

Next Step

The next natural step one should follow is doing more research into IRA account types and what would best suit your retirement needs. The companies listed are an essential place to start your research.

Doing research with your particular value and methodology is also important.  Before committing to an IRA, the fundamentals of IRAs and investing are essential to know.

It's helpful to understand how IRA accounts work and the dangers and benefits of investments.  Going into anything blind will leave you concerned and constantly asking questions, so it's good to start identifying any questions you may be holding before opening an IRA. 

Naturally, the financial institution you pick will answer some of these questions, but it's always good to inform yourself. 

An IRA is critical, and deciding who handles your account will affect your entire retirement plan. Don't be scared to put your faith in whatever financial institution you decide because having a retirement plan is better than not having one.

IRA Accounts FAQs

Why should you invest in an IRA?

Investing in an IRA is vital for your future. When you retire, your income will be very limited. Typically, the only money you'll have will be your savings, stocks, and whatever other investments you have that can be converted into cash. 

IRAs allow you to steadily build up a safety net that won't be taxed as heavily as other saving methods. This benefit provides anyone with an IRA to have more money for retirement than other savings methods.

What are the different types of IRA accounts?

The first and most common is a traditional IRA account, where you make contributions throughout the years.  The next is a Roth IRA, which doesn't have an upfront tax break.

The withdrawals from the account are entirely tax-free. The usual trend with different IRA accounts is how you put money into the account and the benefits.

Each type of IRA account has its advantages: Payroll deduction IRA, SEP, SIMPLE IRA plan, and SARSEP.

What are the benefits of an IRA?

Investing into your retirement early on assures that your money will continue to grow faster and healthier. Others can manage your IRA account to ensure income remains stable and your account stays healthy.

The point of an IRA is to grant its account holder a hefty sum of money upon retirement. In essence, the benefit of having an account assures that upon retirement. 

IRAs have inherent benefits, but the most appealing to many is the tax benefits. In a traditional IRA account, individuals are allowed tax deferment on payments towards the account. 

While account holders aren't granted an upfront tax benefit in a Roth IRA account, users receive a tax benefit on withdrawal. Money withdrawn from a Roth IRA account isn't subject to taxation. 

Another added benefit is peace of mind. Knowing that you'll have money upon retirement helps relieve the stress of financial uncertainty when your working days begin to end.

Am I eligible to save taxes with an IRA?

Every individual is eligible to save on taxes with an IRA account, but it does depend on which IRA account type you choose.

You will save on taxes in different ways or at other times, but you will see a tax benefit with nearly every account type.

Which type of IRA is best?

There is no real "best" IRA option, but there may be a "best" option for you. Each is very dependent on your financial position and goals. For example, individuals in a higher tax bracket may benefit from a traditional IRA.

Individuals who may end up In a higher tax bracket upon retirement will receive better benefits from a Roth IRA. Both options help, but the extra benefits depend on the account holder's financial position.

M1 Finance

M1 Finance is an all-in-one money management platform that helps self-directed investors achieve long-term financial wellness.

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