Find out about retirement planning fees For 401 (k), Roth IRA and IRA plans, administrative fees of between 1 percent and 2 percent are generally considered high, while administrative fees that are less than 1 percent are considered more acceptable. Some Roth IRA providers charge a monthly or annual account maintenance fee (sometimes called a deposit fee). The fee and dollar amount that you will pay should be stated in your account documents. If you still choose a bank CD, be sure to choose one of the IRA accounts with the best IRA CD rates so you know that you’ll get the best return on that type of account.
According to a study published on Thursday by The Pew Charitable Trusts, a nonprofit research organization, rollover IRAs can cost Americans billions of dollars in additional fees over decades. Although IRAs have long been a way for people who don’t have access to an employer-sponsored plan to save, only 13% of working Americans use these accounts to save money for retirement. This is a combined limit shared by the two types of IRA. You can have both a Roth and a traditional IRA, but that cap applies to all of your IRA contributions combined. Open your IRA with a broker or robo-advisor that offers cost-effective investments (if you’re thinking about opening your IRA with a bank, check out the FAQs below for more information about bank IRAs).
Even if you have a 401 (k) plan or another workplace plan, it can make sense to save in an IRA as long as you also make sure you get a 401 (k) match from the company that’s being offered to you, as IRAs often offer more investment options.
