E*TRADE IRA review: Account types, fees, and features
E*TRADE offers several types of individual retirement accounts (IRAs), including traditional, Roth, and rollover IRAs. It also offers inherited IRAs and retirement accounts for small business owners. E*TRADE retirement accounts are free to open and have no maintenance fees, although other fees can apply.
The right IRA for you depends on how you want your contributions and withdrawals taxed, whether you’re moving money from an old workplace retirement plan, and how you prefer to invest.
This E*TRADE IRA review covers the available account types, fees, investment options, and key features.
Which E*TRADE IRA accounts are available?
E*TRADE offers several IRA options, but traditional, Roth, and rollover IRAs are the most relevant for the average consumer.
The right account for you depends on your income, tax situation, and whether you’re contributing new money or moving retirement savings from another account.
Traditional IRA
An E*TRADE traditional IRA lets you invest for retirement while potentially getting a tax deduction for your contributions. Whether you can deduct your contributions depends on factors such as your income, tax filing status, and whether you or your spouse participates in a retirement plan at work. Investments in the account can grow tax-deferred, with taxes due when you take distributions.
Roth IRA
An E*TRADE Roth IRA is funded with after-tax dollars, so you don’t get a tax deduction for contributions. In exchange, qualified withdrawals can be tax-free if you meet IRS requirements. Your ability to contribute directly to a Roth IRA can also be limited by your income and tax filing status.
What is an IRA? Traditional vs. Roth
Rollover, inherited, and Complete IRA options
E*TRADE also offers several IRA options for more specific situations:
- Rollover IRA: These IRAs are designed to receive eligible retirement assets from an old employer-sponsored plan, such as a 401(k). A rollover may or may not be the best choice for your needs, so it’s worth comparing an IRA with other options before moving your money.
- Inherited IRA: Inherited IRAs are for people who inherit an IRA or qualified retirement plan. Distribution requirements depend on factors including your relationship to the original account owner and the type of account inherited.
- E*TRADE Complete IRA: Available to eligible E*TRADE IRA holders ages 59 1⁄2 or older, this option adds features such as check writing, a debit card, and online bill pay for accessing retirement funds. Withdrawals are still IRA distributions and may have tax consequences.
E*TRADE also offers an IRA for minors with earned income, along with SEP and SIMPLE IRAs and Individual 401(k)s for eligible business owners.
E*TRADE IRA account types and purpose
| Account type | Primary use | Contribution source | Tax treatment (high level) | Key rule/eligibility note |
|---|---|---|---|---|
| Traditional IRA | Investing for retirement | New contributions or transfers | Contributions may be deductible and withdrawals are generally taxable | Deductibility depends on income, filing status, and workplace plan coverage |
| Roth IRA | Investing for retirement with after-tax dollars | New contributions or transfers/conversions | No deduction for contributions, but qualified withdrawals can be tax-free | Direct contributions are subject to income limits |
| Rollover IRA | Moving money from a workplace retirement plan | Eligible 401(k), 403(b) or other retirement plan rollover | Generally maintains tax-deferred status when properly rolled over | Compare an IRA with your existing or new employer plan before moving money |
| Inherited IRA | Holding inherited retirement assets | Inherited IRA or eligible retirement plan assets | Tax treatment depends on the inherited account and distributions | Distribution rules vary based on several factors, including beneficiary status |
| Complete IRA | Adding cash-management features to an existing E*TRADE IRA | Existing eligible E*TRADE IRA | Follows the tax treatment of the underlying IRA | Typically available to E*TRADE IRA holders age 59½ or older |
What does an E*TRADE IRA cost, and what can you invest in?
Cost is one area where E*TRADE keeps things relatively simple. There are no annual IRA fees or minimum balance requirements, and investors have access to a wide range of investments. However, some trades and services can still come with fees.
IRA fees and trading costs
E*TRADE doesn’t charge an annual fee to maintain an IRA, and there’s no minimum deposit required to open one. Online trades of U.S.-listed stocks, exchange-traded funds (ETFs), mutual funds, and options also have a $0 commission, although exclusions and other fees can apply. Options trades have a per-contract fee, for example.
Fees may also apply to certain bond transactions, broker-assisted trades, and other services, so it’s worth checking E*TRADE’s current pricing before you invest.
E*TRADE brokerage review: Costs, tools and account fit
Investment choices and account protection
E*TRADE IRAs can hold a broad range of investments, including stocks, ETFs, mutual funds, bonds, and options. This gives investors plenty of room to build a retirement portfolio based on their goals and investing style.
E*TRADE securities accounts are offered through Morgan Stanley Smith Barney LLC, which is a member of the Securities Investor Protection Corp. (SIPC). SIPC protection can help protect eligible securities and cash held at a failed SIPC-member brokerage if customer assets are missing, subject to coverage limits. However, it doesn’t protect you if your investments lose value.
How do E*TRADE IRA contribution and tax rules work?
E*TRADE IRAs follow the same federal contribution and tax rules as IRAs held at other financial institutions. These rules can change over time, and how they affect you depends on factors such as your income, age, and tax filing status.
2026 contribution and Roth eligibility rules
In 2026, you can contribute up to $7,500 across your Traditional and Roth IRAs combined, per the Internal Revenue Service (IRS). If you’re age 50 or older, the limit increases to $8,600. You also need enough taxable compensation to support your contribution.
Roth IRA contributions are subject to income limits, so higher earners may have their contribution reduced or be unable to contribute directly. Traditional IRA contributions aren’t subject to the same income limits, but whether you can deduct your contribution on your taxes depends on your income, filing status, and access to a workplace retirement plan.
Withdrawals and required minimum distributions
Withdrawals from a traditional IRA are typically taxable, and taking money out before age 59½ may result in an additional 10% tax unless an IRS exception applies.
Traditional IRAs are also subject to required minimum distributions (RMDs) once you reach the applicable starting age (73 or 75, depending on birth year). Original Roth IRA owners don’t have RMDs during their lifetime.
Consider talking to a tax professional if you’re dealing with an IRA conversion, nondeductible contributions, an inherited IRA, or a complicated rollover.
Traditional IRA withdrawal rules: When penalties do and don’t apply
How do you open, fund, or roll over an E*TRADE IRA?
Opening an E*TRADE IRA starts with choosing the type of account you want and completing an online application. From there, you can fund the account with a new contribution, transfer assets from another IRA, or potentially roll over money from an eligible workplace retirement plan. Once the money arrives, you’ll need to choose how you want to invest it.
If you’re moving an existing IRA, a trustee-to-trustee transfer lets the money move directly between financial institutions without being paid to you first. Similarly, you may be able to complete a direct rollover from a former employer’s retirement plan directly into an E*TRADE Rollover IRA.
You can also receive an eligible retirement plan distribution yourself and have 60 days to roll it into another eligible retirement account. However, taxes, mandatory withholding, and other rules can apply, making this approach more complicated.
Keep in mind that a rollover isn’t a new IRA contribution, so an eligible rollover generally doesn’t count toward your annual IRA contribution limit.
Before moving money from a workplace plan, compare your options carefully. Leaving your money in the existing plan, moving it to a new employer plan or rolling it into an IRA can have different fees, investment choices, withdrawal options, and protections.
How torollover an IRA: A step-by-step guide
Frequently asked questions
Does E*TRADE charge annual fees for an IRA?
No. E*TRADE currently charges no annual IRA maintenance fee and has no account minimum. However, transaction fees, fund expenses, brokerage commissions, and service fees may apply depending on how you use the account.
Can I roll an old 401(k) into an E*TRADE IRA?
Yes. You can roll an eligible 401(k) or other former employer-sponsored retirement plan into an E*TRADE IRA. However, a rollover isn’t always the right choice, so compare your old plan with your IRA options before moving your money.
Can I open both a traditional IRA and a Roth IRA at E*TRADE?
Yes. You can have both a traditional IRA and a Roth IRA. However, the IRS contribution limit applies across your traditional and Roth IRAs combined, and income limits can affect how much you’re allowed to contribute directly to a Roth IRA.
Are E*TRADE IRA investments FDIC-insured or SIPC-protected?
Investments such as stocks, ETFs, and mutual funds aren’t insured by the Federal Deposit Insurance Corp. (FDIC). E*TRADE securities accounts are offered through Morgan Stanley Smith Barney LLC, a SIPC member. SIPC protects eligible securities and cash if a brokerage fails and customer assets are missing, subject to limits, but doesn’t protect against investment losses. Certain bank accounts, like E*TRADE’s Premium Savings Account, qualify for FDIC insurance.
