Best IRA Accounts for 2026

Before opening your new retirement account, consider these six tips for success:

1. Choose a broker with no IRA fees. The more you pay in fees, the less money you have to invest for your future. Watch out for maintenance fees, fees for opening the IRA, fees for closing it, fees for transferring your money elsewhere, and the like.
2. Decide which type of IRA to open. Should you go with a traditional IRA or a Roth? The main difference is when you get your tax break. A traditional IRA provides an upfront tax break: Contributions are tax-free (meaning you may be able to deduct them from your taxes today). Taxes come due when you withdraw money from the traditional IRA in retirement. With a Roth IRA, contributions are taxed upfront and withdrawals down the road are completely tax-free. (Check out the more detailed Roth and traditional IRA explanation below.)
3. Make sure the account can age with you. You’re going to have an IRA for years — maybe decades — up to and throughout retirement. Take the time to make sure the platform is easy for you to navigate, the service has retirement investing tools you’ll use, and that you’re satisfied with the customer service. Don’t worry if you discover your first IRA choice is not the right fit: It’s easy to move your IRA to a new broker. (Check out our full online broker reviews for more information about the providers we recommend.)
4. Maximize investment returns by making early contributions. The younger you are when you open and begin contributing to your IRA, the longer your portfolio will grow without being taxed. Even a few extra months of having your money in the market can make a significant difference in your long-term investment returns. Each year try to make your IRA contribution as early as possible. And remember, the IRS gives you until the tax filing due date (usually April 15th) to make your contribution for the prior tax year.
5. Expand your options with a 401(k) to IRA rollover: If you have money sitting in a former employer’s 401(k) plan, moving it into a self-directed IRA will give you much more control over your investment dollars. You’ll maintain the tax benefits of the 401(k), and expand your investment choices beyond the limited number of mutual funds offered in most employer-sponsored plans. Rollovers are easy: Simply tell the new broker what you want to do and they’ll walk you through the process.
6. Look for new account bonuses: Competition for your retirement savings among discount brokers is fierce. As long as you’re looking for a place to put your retirement savings dollars, take advantage of the current offers and get a bonus for opening a new account.

An individual retirement account, or IRA, is a type of tax-advantaged retirement account for U.S. taxpayers. An IRA lets you invest in stocks, bonds and other securities to save for retirement while deferring paying capital gains on your investments, allowing them to potentially compound faster, right from within an online brokerage account. The three most common retirement account types are traditional IRAs, Roth IRAs, and SEP IRAs. There are also inherited IRAs and, for minors with earned income, custodial IRAs.

A traditional IRA is an account that provides an upfront tax break for saving money for retirement. Contributions to the account are pre-tax (meaning you may be able to deduct all or part of the amount from your current year’s taxes). Furthermore, all earnings over the course of the account's life are tax-deferred until you start withdrawing for retirement. At that point you pay income taxes on your withdrawals.

More details: For the 2026 tax year, you can contribute up to $7,500 per year if you’re under age 50, and $8,600 if you are 50 or older. Withdrawals before age 59½ generally remain subject to a 10% early distribution penalty. See IRS.gov for more information.

Contributions to a Roth IRA are made with after-tax dollars. Although you get no up-front tax deduction, your withdrawals during retirement are completely tax-free. Like a traditional IRA, earnings growth over the course of the account’s life are not taxed.

More details: You are allowed to contribute up to $7,500 a year to a Roth IRA ($8,600 if you are age 50 or older). Eligibility is based on your income; for 2026, the phase-out range begins at $153,000 for singles and $242,000 for married couples filing jointly. Unlike Traditional IRAs, your contributions (but not earnings) can be withdrawn tax- and penalty-free at any time. Here's the IRS' detailed description of the rules of distributions (withdrawals).

A Simplified Employee Pension IRA (or SEP IRA) is a traditional IRA modified for business owners and any employees they might have. SEP IRA contribution limits are much higher than what’s allowed in traditional and Roth IRAs.

More details: For the 2026 tax year, employers can contribute up to 25% of an employee's compensation or $72,000, whichever is lower. Like a traditional IRA, these contributions are tax-deferred, and distributions in retirement are taxed as ordinary income. See the IRS website for more information.

A 401(k) is a type of retirement account American employers offer their workers. Like a traditional IRA, the regular 401(k) is a tax-deferred investment account. Some employers also offer a Roth version of the account — a Roth 401(k) — where contributions are post-tax and qualified withdrawals are tax-free.

More details: For 2026, the employee contribution limit for a 401(k) or 403(b) is $24,500. If you are age 50 or older, you can contribute a total of $32,500 ($24,500 plus an $8,000 catch-up). Notably, under SECURE 2.0, a "super catch-up" of $11,250 is available for employees aged 60 through 63. Most employers continue to offer a match, typically between 3% and 6% of your salary.

Do you have money in an old 401(k) plan? That money is yours to roll into an IRA with a brokerage you choose. See this IRS page for more information.

If you're trying to decide how to leverage a 401(k), IRA, or both, check out our guide on the best way to use each account.

Opening an IRA with a broker can take as little as ten minutes, though some brokers will need a couple of business days to review and approve your account application. Follow these steps:

• Decide which type of IRA you want to open.
• Choose a beneficiary.
• Choose a broker that best suits your needs.
• Enter your contact information, Social Security number, and basic financial data.
• You will also be asked about your investment experience and comfort with investment risk so the broker can assess investment suitability.
• Sign and submit the application.
• Check your IRS contribution limits.
• Once your account is approved, deposit your contribution into the IRA.

There are no limits to the number of IRAs you can open. But it’s a good idea to consolidate them into one account or two, if you have both Traditional and Roth IRAs. Here are three reasons why it’s a good idea to keep all your retirement money together: It makes it easier to...

• Follow your investments and progress towards your retirement goal.
• Maintain a diversified portfolio.
• Settle your estate in case your money outlasts you.

The contribution limit for IRAs in 2026 is $7,500. Taxpayers who are at least 50 years old may contribute $8,600.

• Contributions made to a Traditional IRA are tax-deductible but subject to phaseouts if the worker or spouse is covered by an employer-sponsored plan.
• The amount that can be contributed to a Roth IRA in 2026 is also subject to phaseouts depending on modified adjusted gross income, beginning at $153,000 for singles and heads of household and $242,000 for married couples filing jointly.

IRAs can hold stocks, bonds, mutual and exchange-traded funds, cash, certificates of deposit, cryptocurrencies, real estate, options and futures. IRA trustees (usually a broker or bank) may limit the options. Collectibles such as antique rugs, Michael Jordan’s sneakers, stamps, or art are not eligible for IRA accounts. Gold and other IRS-approved precious metals must be held by a bank or IRS approved trustee.

IRA account holders should generally avoid any investment that could generate unrelated business taxable income (UBTI), which is taxable income earned by a tax-exempt entity. One example of a tax-exempt entity is an energy limited partnership. IRAs with UBTI may lose some of their tax advantages. Most of the investments commonly found in IRAs are not subject to UBTI.

Yes, you can contribute to a 401(k) and an IRA in the same year, as long as you stay within IRS contribution limits.