E*TRADE IRA Overview
E*TRADE offers a wide range of retirement accounts, more than most other retail brokers. Whether you’re looking for IRAs with tax benefits, plans with higher contribution limits, or accounts tailored to specific income brackets, E*TRADE has options that can meet your needs.
IRA Accounts at E*TRADE
E*TRADE provides several different retirement accounts, so you can find one that suits your specific needs. These include various IRAs for personal use, as well as options for small business owners and the self-employed.
Here’s an overview of the IRA accounts available at E*TRADE:
E*TRADE IRA Options for Individuals
Rollover IRA – If you have an old 401(k) or 403(k) and want to roll it over to E*TRADE, the Rollover IRA is a great option. It comes with no annual IRA account fees.
Roth IRA – E*TRADE’s Roth IRA offers features like cash management, managed portfolios, tax-free growth, and the option for early withdrawals.
Traditional IRA – This tax-deferred account includes options like managed portfolios, cash management, and various tax benefits. It’s free to open, and the annual contribution limit is $6,000 (or $7,000 if you’re over 50).
Beneficiary IRA – This account is for those who have inherited assets. There are no annual fees or account minimum requirements.
E*TRADE Complete IRA – Designed for investors over 59.5, this account offers cash management, no withdrawal restrictions, and no annual fees.
IRA for Minors – This is a great option for building a nest egg for a minor. There are no account minimums or annual fees. The IRA for Minors can be self-directed or automated, with options for both Traditional and Roth IRAs. The annual contribution limit is $6,000.
E*TRADE IRA Options for Small Businesses
Individual and Roth Individual 401(k) – Ideal for small business owners or the self-employed, this plan allows for much higher contributions than a standard IRA, thanks to salary deferrals and profit-sharing.
Simple IRA – This plan is suited for small business owners with fewer than 100 employees. It allows for annual salary deferrals up to $17,000 in some cases, with tax-deductible contributions.
Investment-Only Account – Business owners can open additional retirement accounts for investment purposes. These accounts have no minimum initial deposit requirement.
SEP IRA – The Simplified Employee Pension plan is a good option for the self-employed and small business owners. Annual contributions are based on business income, allowing you to save up to 20% of your income, with contributions being tax-deductible.
E*TRADE IRA Fees
E*TRADE’s IRA accounts don’t have administrative or maintenance fees, but there may be other costs, like a $25 fee for early withdrawals.
Other fees could include those related to subscriptions, services, margin, trading, and commissions, depending on your account setup and investment choices.
Minimum Deposits
There are no minimum deposit requirements for retirement accounts at E*TRADE. You can open an IRA that fits your needs and make your first contributions whenever you’re ready.
Contribution Requirements
Different IRAs have different contribution limits, so it’s important to know the rules for your chosen account.
Most IRAs at E*TRADE have contribution limits of $6,000 for those under 50 and $7,000 for those over 50. However, some plans allow for higher contributions through salary deferment and compensation, along with tax-deductible contributions.
Investing in an IRA on E*TRADE
Investing in an IRA at E*TRADE is similar to trading in a standard brokerage account. You can access a wide range of investment options, margin services, and professionally managed portfolios. You can use any of E*TRADE’s trading platforms to manage your retirement portfolio, with tax advantages available for IRA trading.
Available Securities
E*TRADE offers an impressive selection of securities, including:
- Stocks (U.S. exchange/ Foreign/ ADRs)
- ETFs (sector/ growth/ dividend/ etc.)
- Futures (CME, ICE US, and CFE)
- Options (on stocks/ futures/ ETFs)
- Mutual Funds (load/ no-load)
- Bonds and CDs
Platforms and Mobile Access
Whether you’re a self-directed investor or prefer a managed approach, E*TRADE provides the tools you need. You can choose from multiple trading platforms, a full-featured website, and two mobile apps.
E*TRADE’s website serves as the central hub for all your investment needs, including portfolio management, subscriptions, and account settings. It’s also the best place to access documents related to your account and taxes.
Power E*TRADE is a browser-based platform that offers access to all of E*TRADE’s securities. While it lacks some features compared to the professional-level E*TRADE Pro, it’s more than capable of managing a retirement portfolio from almost anywhere.
E*TRADE Pro is the broker’s professional trading platform, designed for advanced traders who need a multi-display setup and competitive day trading tools. It requires a PC download.
E*TRADE also offers two mobile apps: one for general account access and one for Power E*TRADE. Both are user-friendly and allow for on-the-go investing, but the Power E*TRADE app offers more features.
Managed Portfolios
Managed portfolios are a popular choice for IRA holders who prefer not to manage their investments actively. E*TRADE’s financial advisors and automated tools can handle your portfolio for you.
Core Portfolios have a small annual advisory fee of 0.30% and a $500 minimum deposit.
Blend and Fixed Income portfolios are similar but managed by professionals rather than AI. Blend portfolios require a $25,000 minimum, while Fixed Income portfolios require $250,000.
Taxes on IRA Accounts
E*TRADE offers various IRA accounts with different tax structures, allowing you to choose one that suits your preferences. Some accounts let you invest pre-tax money, while others use after-tax funds.
One benefit of some IRAs is that you can grow your investments tax-free (Roth) or defer taxes on capital gains until the plan matures (Traditional).
Additionally, contributions to some IRA accounts can be tax-deductible.
Customer Service
E*TRADE’s customer service is generally good, though response times can be slow due to high inquiry volumes. Calling the support number is the fastest way to get help, but email or support tickets are also options.
The trading desk doesn’t experience the same delays, so if you need to speak with your broker about an investment, help is readily available.
E*TRADE’s website also offers self-service tools and a comprehensive FAQ section. Clicking on ‘Contact Us’ in the upper-right corner of the site provides many useful links and articles to help resolve common issues.
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E*TRADE IRA Review Summary
E*TRADE is an excellent broker for retirement accounts, offering a wide range of securities, powerful trading technology, optional portfolio management, and many retirement account options.
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Updated on 7/19/2024.
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