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How to Find the Best IRA Accounts?

Today, many people start thinking about pension savings far in advance. As a rule, most employees already have certain financial reserves via a 401(k) plan. But extra savings won’t hurt. So, we recommend you consider opening an IRA account as well. In this guide, we will explain to you how it differs from a 401(k) account and how to select the best one for you.

All people that are legally employed have 401(k) plans that are meant to ensure their comfortable life after retirement. But, in practice, it may turn out that these savings are not enough for you and your family. So, if you feel worried about the future and want to have an extra financial cushion at hand, consider the option of an IRA account.

For a start, let us find out how IRA and 401(k) plans differ from each other. A 401(k) plan is a retirement account, which is funded by an employer from an employee’s salary. This sum is not subject to taxes. Also, an employer can partially cover these payments from his own income.

On the other hand, IRA accounts are funded directly by their owners. They can be opened even by those individuals that are not employed. The main point is to have legal income. One gets the right to withdraw money free of penalties after the age of 59.5. Also, the money saved can be used for investments in diversified assets (that depends on a broker chosen). Another great advantage is that, in the case of such accounts, annual contribution limits are much lower than in 401(k) plans.

The next point is to discuss how to select such an account. The team of Traders Union has analyzed offers by more than 100 online brokers and compiled a list of 6 best IRA accounts: Webull, Fidelity, Charles Schwab, E*TRADE, Interactive Brokers, and TD Ameritrade. All of them offer comfortable and transparent terms. They do not have minimum deposit limits, management fees, or closure charges. Besides, all of them provide investments in stocks, ETFs, options, and futures free of charge. Yet, some of them require additional fees, for example, for transferring out. So, you had better visit all the platforms mentioned, compare what types of accounts they offer, and decide which of them suits you the most.

In sum, an IRA account is an easy-to-access instrument to ensure proper living conditions during retirement. So, in case you have certain free money in reserve, we recommend you take this investment opportunity into consideration.