TD Ameritrade IRA Review
TD Ameritrade Roth IRA, Traditional IRA, Rollover, SEP, Simple IRA (individual retirement accounts) review, promotion offer, rating, fees and commissions. Is TD Ameritrade IRA good and safe way to invest?
|Stocks and ETFs|| $6.95|
|Stocks and ETFs broker assisted|| $44.99|
|Options|| $6.95 + $0.75 per contract|
|No-load mutual funds|| $49.99|
|Treasuries at auction|| $25|
|All other bonds and CMOs, CDs|| on a net yield basis|
|Futures|| $2.25 per contract plus exchange & regulatory fees|
|Forex|| Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix). There are no additional fees or charges.|
- Traditional IRA
- Roth IRA
- Rollover IRA
- SEP IRA
- SIMPLE IRA
- Individual 401k (for small business)
TD Ameritrade IRA Fees
- IRA setup fee: $0
- Annual IRA fee: $0
- IRA termination fee: $0
- Outbound full account transfer: $75
- Outbound partial account transfer: $0
Opening a TD Ameritrade IRA Account
Opening a new individual retirement account with TD Ameritrade is simple and straightforward. Click on their promotion link to get
60 days of free trading plus up to $600 bonus -
Trade free for 60 days + Get up to $600.- hit "Open an Account" button and
you'll get to account application screens. Information required includes
personal information, Social Security Number or Individual Taxpayer Identification Number as well as some data about a current employer.
If an applicant already has a different TD Ameritrade account, he or she can simply provide their current account information to speed up the
Different IRA’s for Different Needs
There are several different types of Individual Retirement Accounts at TD Ameritrade. They are designed to fit different financial situations. A Traditional account is best for retirement savers who expect to be in a lower tax bracket after work. A Roth IRA is available for savers who think they’ll probably be in a higher bracket during retirement. There is also a Minor IRA, in both Traditional and Roth formats, that allows parents to start saving for their children’s retirement. SIMPLE and SEP accounts can be established for small businesses and the self-employed. Under IRS guidelines, the business can have no more than 100 employees.
Opening one of these accounts is fairly simple using the TD Ameritrade website. You can open an IRA by yourself or call one of the broker’s retirement experts at 1-800-213-4583. The retirement department can help you open a new IRA or move an old one to TD Ameritrade. You can also move a 410(k) plan to the broker and set it up as an IRA.
TD Ameritrade does not charge any setup, low-balance, or annual fees for any account type, including IRA’s. Even better, an account can be opened with $0. There is also no minimum level of activity that the broker requires for IRA’s.
TD Ameritrade’s commission and fee schedule applies equally to retirement and non-retirement accounts. TD Ameritrade recently lowered its stock and ETF commission from $9.99 to $6.95, making it a low-cost broker. Placing a trade over the company’s automated phone system is a little steeper at $34.99, while using a living, breathing agent to submit an order is a rather expensive $44.99.
U.S. Treasury bonds at auction cost $25 per transaction. Other fixed-income products are priced on a markup or markdown, meaning that the bond’s price will include an increase or decrease to compensate the broker.
Paper statements are free for accounts with $10,000 or more in assets. Pensioners who don’t have this amount pay $2 for each mailed statement. Electronic statements and paper trade confirmations are always free.
Closing an IRA remarkably is free at TD Ameritrade. The broker does charge $75 for moving a retirement account to another broker, although partial transfers are free.
Compared to other brokers, TD Ameritrade’s fees are very good. Most brokers, including Firstrade and Edward Jones, charge a fee to close an IRA. Not
charging an annual IRA fee is also excellent. Other brokers, such as TradeStation, do charge an annual fee for retirement accounts.
Mutual and Exchange-traded Funds
TD Ameritrade customers have access to a large selection of funds. The broker’s mutual fund screener returns 11,851 products that are available for purchase. More than 3,800 also have no transaction fee, and 3,709 carry no load. If a fund has a transaction fee, it will be $49.99. This charge applies to purchases, sales, and exchanges.
Some of the broker’s mutual funds are target-date funds. These securities are designed for retirement savers. As the target date approaches, the fund becomes less risky by moving assets into more conservative investments. Examples of fund families that provide these securities include T. Rowe Price, PIMCO, and BlackRock. Some of these products have no transaction fee and no load.
Besides mutual funds, TD Ameritrade also offers all US-listed ETF’s. Over 100 of them are also commission-free. These securities have very low expense ratios, some below 0.25%. There are many investment categories that will appeal to pensioners, including a REIT fund, a short-term bond fund, and an S&P 500 ETF.
TD Ameritrade’s fund selection is quite a bit better than several of its competitors. Scottrade and Capital One Investing, for example, don’t offer any commission-free ETF’s. Merrill Edge provides far fewer than 11,000 mutual funds, and Firstrade has fewer than 1,000 no-load, no-transaction-fee funds.
IRA Videos and Articles
The TD Ameritrade website has a large selection of materials that are devoted to retirement issues. These include articles that discuss distributions after age 70½, choosing a retirement plan for a small business, and how to maximize retirement income.
IRA videos look at topics such as rolling over a 401(k) plan, managing the taxation of investment accounts, and making withdrawals from an IRA.
TD Ameritrade also provides a free trial to its affiliated educational company Investools. This firm specializes in investment education. It would be a good opportunity for pensioners who need more investment education.
The retirement section on TD Ameritrade’s site has some very useful IRA tools and calculators. For example, one calculator determines how much extra you have to save annually if you put off saving for retirement by one year. The results of the calculation show how much must be saved annually with 2-year, 4-year, 6-year, and 8-year delays.
Another tool predicts the amount of income a retiree can expect to receive after work. The calculator asks for various inputs, such as current age, expected years of retirement, Social Security income, and annual rate of return. It then estimates an annual amount of income, and displays the amount in both future and present value.
A tool called IRA Selection Wizard can be used to look at the advantages and disadvantages of Roth and Traditional accounts. The device asks for various pieces of information, such as tax filing status, age, annual income, and other retirement plans. The selection wizard then suggests one of the two IRA types. The wizard also mentions contribution limits that should apply to the user, based on the information entered.
Another calculator called Retirement Planner is an excellent way to see if you are saving enough for retirement. This tool collects various pieces of data, such as current age, age at retirement, and monthly living expenses during retirement, including a spouse’s living expenses.
Other inputs include any pension assets and current monthly retirement contributions. The planner then calculates if you’re on track to meet projected retirement costs, or if you need to save more. The tool recommends a specific amount to save each year in present value in order to meet future living costs.
Investment Advice and Portfolio Management
TD Ameritrade Investment Management is an affiliated company that provides financial advice and portfolio management for an additional cost. These services may be a good choice for pensioners who aren’t confident with their own investment ability.
A robo-advisory service is available for retirement accounts with a balance of $5,000 or more. It costs just 0.30% per year. It invests in low-cost ETF’s. Investors who want mutual funds as well can sign up for one of the company’s human-managed accounts. The fee is a little higher—75 to 125 basis points. A balance of $25,000 is also required.
By comparison, Edward Jones and Raymond James offer managed accounts for approximately 1-2% on average. Small accounts will be charged more than 2% at both firms.
A new IRA opened with TD Ameritrade may qualify for a cash bonus plus free trades for 60 days. A deposit of just $3,000 earns the commission-free
trades. Since the current contribution limit for IRA’s is at least $5,500, it should be fairly easy for most investors to meet this requirement.
Transferring an existing IRA or rolling over a 401(k) plan worth $25,000 or more qualifies for a $100 cash prize. Promotion link:
Trade free for 60 days + Get up to $600.
TD Ameritrade has a very good IRA lineup that usually meets or beats its competition in most areas. The broker would especially be a wise choice for
investors who need additional customer service and guidance as well as beginners.
Article was updated on 3/16/2017.
reviewed by IRA-Reviews.com on