Best Brokers for Retirement Plans in 2022

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Saving for retirement is an important part of planning for your financial future. Retirement plans are great ways to save for your later years because they offer tax benefits when you add money to your account(s).

There are a lot of factors that go into choosing the best brokerage for your retirement plan and choosing which plan is right for you, whether it’s an individual retirement account (IRA) or a solo 401(k). You’ll have to look at the account types the broker offers, as well as things such as fees, minimums, and the variety of investments available.

Best Brokers for Retirement Plans in 2022

Best Brokers for Retirement Plans in 2022
Best Brokers for Retirement Plans in 2022

Best Overall : Fidelity Investments


Fidelity

Fidelity

  • Minimum deposit: None
  • Fees: None
  • Account types: Traditional and Roth IRAs, small business

Why We Chose It

Fidelity is our choice for the best overall retirement plan broker for a few reasons.

One is the variety of account types it offers. Whether you’re an individual opening an IRA, a small business owner, or someone who is self-employed, you can open almost any type of retirement plan.

Fidelity also keeps costs low, with no minimum balance requirements or fees if you choose to manage your own investments. There’s even a line of mutual funds with no expense ratio, giving you a chance to invest at no cost.

Pros
  • Wide variety of retirement plans

  • Low costs

  • Zero-cost mutual funds

Cons
  • Fees for bond and CD trades

Best for the Self-Employed : Charles Schwab


Charles Schwab

Charles Schwab

  • Minimum deposit: None
  • Fees: None
  • Account types: Roth and traditional IRAs, small business

Why We Chose It

Charles Schwab is one of the biggest names in the financial industry. It offers a huge variety of retirement plans, including options for individuals as well as small businesses and the self-employed. Almost everyone should be able to find the right retirement plan for their needs at Schwab.

There’s no minimum-balance requirement for individual and small business accounts and no commission for stock and ETF trades, making it easy to keep costs low.

Be aware that Schwab does require a minimum balance of $25,000 and charges a one-time planning fee of $300 and a monthly advisory fee of $30 to combine personalized investment guidance with robo-advisory investing, through its Intelligent Portfolios Premium offering, for example.

The company also has a network of physical locations you can visit if you ever want to get in-person assistance with your account or retirement plans.

Pros
  • Wide variety of retirement plans

  • Low costs

  • Physical locations

Cons
  • High minimum balance needed for personalized investment advice

Best for Low Cost : Vanguard


Vanguard

Vanguard

  • Minimum deposit: $1,000
  • Fees: None
  • Account types: Roth and traditional IRAs, small business

Why We Chose It

Vanguard is well-known for its commitment to low-cost investments, offering a huge range of passively managed mutual funds with low expense ratios. The company also offers some low-cost active funds.

While Vanguard’s retirement accounts require a $1,000 minimum deposit before you can start investing in the company’s mutual funds, it can be worth the cost if you’re looking to build a simple, low-cost portfolio of index funds.

Pros
  • Low-cost mutual funds

  • No account fees

Cons
  • $1,000 minimum investment

Best Robo-Advisor : Betterment


Betterment

Betterment

  • Minimum deposit: $10
  • Fees: 0.25% of assets annually
  • Account types: Roth, SEP, and traditional IRAs

Why We Chose It

Robo-advisors make investing easy by handling the nuts and bolts of the process for you. Based on your goals and risk tolerance, Betterment’s program builds a portfolio for you and will buy and sell securities for you.

Betterment offers one of the best robo-advisory services for retirement plans, charging just 0.25% of your account assets each year. The $10 minimum investment means it’s easy to get started saving for retirement.

For additional fees, you can get access to other services, including retirement planning or financial check-ups with a certified financial planner (CFP).

Pros
  • Low fee for robo-advisory service

  • Low minimum deposit

  • Can get assistance from a human

Cons
  • Must pay a fee to use the human advisor service

  • Can’t manage your own account

Final Verdict

Planning for retirement is an important part of preparing for a healthy financial future. Choosing the right brokerage firm for your retirement plan is essential because the fees you pay and the investments you can choose from will significantly affect your portfolio’s performance.

Look for a broker that keeps fees low and lets you invest in the funds and assets that will help your retirement savings grow.

Compare the Best Retirement Plan Providers

Company Account Minimum Fees Account Types
Fidelity None None Roth and traditional IRAs, small business
Charles Schwab None None Roth and traditional IRAs, small business
Vanguard $1,000 None Roth and traditional IRAs, small business
Betterment $10 0.25% of assets annually Roth, SEP, and traditional IRAs

What Are Different Types of Retirement Plans?

There are many different types of retirement plans. Among the most popular are traditional and Roth IRAs, which any individual who earns income can open. Self-employed people can open other retirement plans, such as a SEP IRA or solo 401(k).

How Should You Choose the Best Retirement Plan?

When choosing the best retirement plan, look at the minimums and fees charged by the broker. Also, make sure the broker offers investment options that match your investing strategy.

How Do You Start Investing for Retirement?

The best way to start investing for retirement is to open a Roth or traditional IRA. You can contribute money to the account and invest it in low-cost index funds.

Methodology

We are dedicated to providing readers with unbiased, comprehensive reviews and ratings of online brokers. Our reviews are the result of months of evaluating all aspects of an online broker’s platform, including the user experience, the quality of trade executions, the products available on its platforms, costs and fees, security, the mobile experience, and customer service. A rating scale was established based on these criteria, collecting thousands of data points that were weighed into a scoring system.

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Article Sources

  1. Fidelity. “We’re Raising the Bar on Value.”

  2. Charles Schwab. “Schwab Intelligent Portfolios Premium.”

  3. Vanguard. “Roth vs. Traditional IRA.”

  4. Betterment. “Save Better With an IRA.”

  5. Betterment. “What Accounts Can I Open With Betterment?

  6. Betterment. “Talk to a CFP Professional.”

  7. Fidelity. “IRA FAQs: Rules.”