E*TRADE IRA Overview
E*TRADE offers a good selection of retirement accounts among its many products and services. You’ll find more retirement account options at E*TRADE than you will at most other retail brokers. Whether you are looking for IRAs with unique tax advantages, plans with elevated contribution limits, or accounts designed for specific income brackets, you’ll find what you need at E*TRADE.
IRA Accounts at E*TRADE
At E*TRADE, you can choose between several different retirement accounts. No matter what your needs are, you can find an account to meet them. You’ll find many IRAs designed for personal use and several options for small business owners and the self-employed.
Here is an overview of E*TRADE’s many IRA accounts.
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 an obvious choice. This retirement account option comes with no annual IRA account fees.
Roth IRA – E*TRADE’s ROTH IRA comes with cash management features, managed portfolios, tax-free account earnings growth, and early withdrawal.
Traditional IRA – If you are looking for a retirement account that is tax-deferred and comes with options like managed portfolios, cash management, and numerous tax benefits, the traditional IRA may be a good choice. It is free to open the account, and there is an annual contribution cap of $6000 (or $7k if you are over 50 years old).
Beneficiary IRA – The beneficiary IRA account is for investors who have inherited assets. There are no annual fees on beneficiary IRA accounts. Account minimum requirements are also non-existent.
E*TRADE Complete IRA – This account option is meant for investors over 59.5. Cash management,
no withdrawal restrictions, and no annual fees make this a good choice for anyone already at
retirement age.
IRA for Minors – When you want to build a nest egg for a minor, the IRA for Minors is an excellent option. There are no account minimums or annual IRA fees for this account type. The IRA for Minors can be self-directed or automated, and you can choose between traditional and ROTH. The annual compensation is $6000.
E*TRADE IRA Options for Small Businesses
Individual and Roth Individual 401(k) – The Individual 401(k) is worth considering if you are a small business owner or self-employed. You can make much more significant contributions in an individual 401(k) than in a standard IRA. Salary deferrals and profit-sharing help increase the allowable annual contributions.
Simple IRA – Small business owners with fewer than 100 employers may consider the Simple IRA. There are annual salary deferral limits of up to $17000 in some cases, and contributions are tax-deductible.
Investment-Only Account – Business owners looking to expand and diversify can open additional retirement accounts for investment purposes. Investment-only retirement plans have no minimum initial deposit requirement.
SEP IRA – The ‘Simplified Employee Pension’ plan is a good option for self-employed and small business owners. Annual contributions are pegged to the amount of money your business brings in. You are allowed to save up to 20% of your reported income, and contributions are tax-deductible.
E*TRADE IRA Fees
E*TRADE’s IRA accounts do not come with administrative or maintenance fees, but it is still possible to experience some costs. One example is that early withdrawals come with a $25 fee.
In addition, there are fees associated with subscriptions, services, margin, trading, and commissions that you may need to pay, depending on the configuration of your account and the types of investments you make.
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Minimum Deposits
There are no minimum deposit rules for retirement accounts at E*TRADE. You can open the IRA that best suits your needs and goals today and make your first contributions when you are ready.
Contribution Requirements
Not all IRAs have the same contribution rules, and it is important to know the limits of your chosen account before getting started.
Most of the IRA options available at E*TRADE have contribution limits of $6000 for investors under 50 and $7000 for investors over 50. That said, you can find plans with much higher allowances if you need to put away more than the usual amount.
For example, through salary deferment and compensation, as well as tax-deductible contributions, the annual deposit limits can expand significantly for some of the small business IRA account options.
Investing in an IRA on E*TRADE
Investing in an IRA is the same as trading in a standard brokerage account. You can access a wide range of investment vehicles, margin services, and professionally managed portfolios. You can also use any of E*TRADE’s trading platforms to manage your retirement portfolio, and there are many tax advantages to trading in an IRA.
Available Securities
E*TRADE’s list of available securities is quite impressive.
E*TRADE offers:
- 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 are a self-directed investor or prefer a professionally managed approach, knowing that you have access to the necessary tools can be helpful. E*TRADE Provides multiple trading platforms, a full-featured website, and two mobile apps.
E*TRADE’s website is ‘home base’ for investors at E*TRADE. You can access all the broker’s services from the website, including managing your portfolio, subscriptions, and account settings. The website is also the best place to access documents related to your account status, taxes, and others.
Power E*TRADE is a browser-based trading platform providing access to all of E*TRADE’s investible securities. While it lacks some features compared to the broker’s professional-level trading platform, Power E*TRADE is more than sufficient to manage a retirement portfolio from virtually any location.
E*TRADE Pro is E*TRADE’s professional trading platform. Investors can use the platform to set up multi-display trading desks, competitive day trading strategies, and more. You do need to download E*TRADE Pro to a PC if you choose to use it.
For mobile access to your accounts, E*TRADE provides two trading apps. There is an app that is a companion to the website and one that goes with Power E*TRADE. Both apps are easy to use and allow for on-the-go investing, but the Power E*TRADE app is arguably more feature-rich.
Managed Portfolios
Managed portfolios are popular with many IRA holders. Instead of actively managing your portfolio, you can let E*TRADE’s financial advisors and automated investment tool do it for you.
Core Portfolios come with a small annual advisory fee of 0.30% and a $500 initial deposit.
Blend and Fixed Income portfolios are similar to Core portfolios, but they are managed by financial
professionals instead of AI. Blend portfolios require a minimum account balance of $25,000, and you
need to have a balance of at least $250,000 for Fixed Income portfolios.
Taxes on IRA Accounts
Since E*TRADE offers such a good range of IRA account options, there are multiple tax structures to choose from. You can choose the one that suits your tax preferences. Some allow you to invest money before taxes, and others use after-tax funds.
One standout feature of some IRA accounts is that you can grow your investments without tax (ROTH) or defer your tax payments owed on capital gains until the plan’s maturity date (Traditional).
Another nice feature is that contributions on some IRA accounts can be written off at tax time.
Customer Service
Customer service at E*TRADE is quite good, but it could be faster. There is always an issue with ‘long wait times’ due to ‘high inquiry volume.’ Still, calling the support number is the quickest option, but sending an email or support ticket is also viable to get the help you need.
It should be noted that the trading desk does not experience the same issues. If you need to speak with your broker about an investment, help is always available.
You may use E*TRADE’s self-service tools and a long list of frequently asked questions to get answers faster. Clicking on ‘Contact US’ in the upper right corner of the website brings up many useful links and articles focused on common issues.
E*TRADE Top Competitors
E*TRADE IRA Review Summary
Many things make E*TRADE an excellent broker for retirement accounts. The range of available
securities, the powerful trading technology, optional portfolio management, and access to a surprising
number of retirement account options all come together to create an attractive package.
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