Schwab IRA review: Is it worth it in 2026?
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Key takeaways
- 41% of IRA assets, or $8.0 trillion, was invested in mutual funds at the end of Q2 2026.1
- A Schwab IRA charges $0 to open, $0 in maintenance fees, and $0 commission on online stock and ETF trades, and Schwab Intelligent Portfolios can manage the IRA with no advisory fee from $5,000.
- A Schwab IRA is best for a saver who wants mutual funds or a free managed portfolio inside the IRA, while Robinhood is best for a saver who wants to be paid a match on every contribution.
In this article
Key takeaways
- 41% of IRA assets, or $8.0 trillion, was invested in mutual funds at the end of Q2 2026.1
- A Schwab IRA charges $0 to open, $0 in maintenance fees, and $0 commission on online stock and ETF trades, and Schwab Intelligent Portfolios can manage the IRA with no advisory fee from $5,000.
- A Schwab IRA is best for a saver who wants mutual funds or a free managed portfolio inside the IRA, while Robinhood is best for a saver who wants to be paid a match on every contribution.
A Schwab IRA is a traditional, Roth, rollover, inherited, or custodial IRA at Charles Schwab with no opening or maintenance fee and $0 commission on online stock and ETF trades. Schwab pays no contribution match.2The choice comes down to whether Schwab's fund lineup and free robo-advisor are worth more to you than the $75 to $225 a year you'd earn at Robinhood on a maxed 2026 IRA. This review covers the IRA types, the costs inside the account, Intelligent Portfolios in an IRA, and what it costs to leave.
This review covers the Schwab IRA only. The Charles Schwab review covers the whole platform, and the best IRA accounts roundup compares Schwab with five other providers.
Who is a Schwab IRA for?
A Schwab IRA is for a saver who wants choice inside the account more than a bonus for opening it. Three kinds of savers fit a Schwab IRA best.
Savers who want mutual funds in an IRA
Mutual funds still hold a large share of IRA money, and Schwab's OneSource list gives an IRA saver thousands of funds with no transaction fee. A fund outside that list costs up to $74.95 per purchase, so check that a fund is on the list before you buy it.
Hands-off savers with $5,000 to start
Schwab Intelligent Portfolios will run an IRA for you with no advisory fee once the account holds $5,000. Our Wealthfront vs Schwab comparison shows what that saves vs Wealthfront at three balances. Below $5,000, you pick your own funds.
Families handling an inherited or custodial IRA
Schwab lists inherited and custodial IRAs on the same page as its traditional, Roth, and rollover accounts. A family settling a parent's IRA and opening one for a working teenager can do both in one place, under one login and one price list. Robinhood, by comparison, offers traditional and Roth IRAs only. A child without a job can't have a custodial IRA, but can have a Trump account, which needs no earned income.
Schwab IRA pros and cons
The Schwab IRA's pros are about what you can hold and what Schwab doesn't charge. Its cons are mostly about the match Schwab doesn't pay.
Schwab IRA pros
- No opening or maintenance fee
- $0 commission on online stock and ETF trades
- Five IRA types, including inherited and custodial
- Thousands of OneSource mutual funds with no transaction fee
- Intelligent Portfolios with no advisory fee
Schwab IRA cons
- No contribution match, while Robinhood, SoFi, and Public each pay one
- $0.65 per options contract
- Up to $74.95 per purchase on transaction-fee mutual funds
- A $5,000 minimum before Intelligent Portfolios will manage the IRA
If the missing match is the dealbreaker, Robinhood pays what its Gold page calls a "3% boost on annual IRA contributions, up to $225 based on the 2026 maximum," or 1% without Gold, with no end date stated as of October 6, 2026 (see our Robinhood IRA review).
Does a Schwab IRA pay a match?
No, a Schwab IRA does not pay a contribution match: Schwab's IRA page, observed October 6, 2026, lists none. Public's IRA page offers "a 1% match on your annual contributions" and SoFi's lists 1%, neither with an end date stated as of October 6, 2026. The table prices what a maxed 2026 contribution earns at each broker that pays one, net of any subscription.3
| Broker | Match on contributions | Maxed under 50 ($7,500) | Maxed at 50 and older ($8,600) | Subscription a year | Net under 50 |
|---|---|---|---|---|---|
| Charles Schwab | None | $0 | $0 | $0 | $0 |
| Robinhood, no Gold | 1% | $75 | $86 | $0 | $75 |
| Robinhood with Gold ($5 a month) | 3% | $225 | $258 | $60 | $165 |
| SoFi | 1% | $75 | $86 | $0 | $75 |
| Public Core | 1% | $75 | $86 | $0 | $75 |
| Public Reserve ($20 a month) | 4%, paid monthly over 12 months | $300 | $344 | $240 | $60 |
Every match comes with conditions a Schwab IRA doesn't have. Robinhood, SoFi, and Public all make matched money stay 5 years, and Robinhood takes back the extra 2% if you drop Gold within a year. Public Reserve pays the largest rate, yet its fee leaves a saver under 50 with less than Public's free tier. Public Reserve's 3.75% cash rate has to make up the difference. Over five years of maxing out, Robinhood's Gold match nets $825 after the subscription. That $825 is what a Schwab saver gives up, not the 3% in the ad.
Schwab IRA fees and features
Charles Schwab charges nothing to open or hold an IRA, and the costs inside one are the same trading and fund fees as any Schwab account.4The broker-wide price list, including bonds and broker-assisted trades, is in the Charles Schwab review.
| IRA fee | Schwab IRA |
|---|---|
| Opening fee | $0 |
| Maintenance fee | $0 |
| Online stock and ETF trades | $0 |
| Options | $0.65 per contract |
| OneSource mutual funds | No transaction fee |
| Transaction-fee mutual funds | Up to $74.95 per purchase |
| Intelligent Portfolios | No advisory fee, $5,000 minimum |
IRA types and 2026 limits
Schwab offers five IRA types, and a Schwab Roth IRA has the same price list as a traditional one. So choosing between them is a tax decision, not a Schwab decision. The Roth vs traditional IRA guide walks through. The contribution limits and Roth income phase-outs come from the IRS and apply at every broker.
| 2026 IRS figure | Amount |
|---|---|
| IRA contribution limit, under 50 | $7,500 |
| Catch-up at 50 and older | $1,100 |
| Total at 50 and older | $8,600 |
| Roth phase-out, single | $153,000 to $168,000 |
| Roth phase-out, married filing jointly | $242,000 to $252,000 |
Rollover IRAs at Schwab
A rollover IRA is where an old 401(k) goes when you leave a job, and Schwab charges nothing to open or maintain one. Schwab's IRA page shows no match on the money you bring. Robinhood pays 1% on rollovers with no cap, and SoFi pays 1% on 401(k), 403(b), and 457(b) rollovers made through its own flow. On a large old balance, that 1% can decide where the rollover goes.
Mutual funds in a Schwab IRA
A fund menu matters more in an IRA than in a trading account, because 41% of IRA assets still sit in mutual funds. Schwab's OneSource funds cost nothing to buy, and a fund outside OneSource costs up to $74.95 per purchase. On a $500 monthly contribution, a $74.95 fee takes 15% of the deposit.
Schwab Intelligent Portfolios in an IRA
Intelligent Portfolios manages an IRA with no advisory fee and a $5,000 minimum. The table compares Intelligent Portfolios with the managed IRAs at the other brokers in this review.5
| Managed IRA | Advisory fee | Pays a match |
|---|---|---|
| Schwab Intelligent Portfolios | None | No |
| Fidelity Go | $0 under $25,000, 0.35% of the whole balance at $25,000 and up | No |
| Robinhood Strategies | 0.25%, free above $100,000 with Gold | No |
| SoFi Automated Investing | 0.25% | Yes, 1% |
What does it cost to leave a Schwab IRA?
Leaving a Schwab IRA costs whatever Schwab charges for an outgoing transfer. That figure was not confirmed on Schwab's pricing page on October 6, 2026, so look it up before you move. Schwab pays no match, so you have no match to forfeit when you leave.
| Exit cost | Schwab IRA | Fidelity IRA | Robinhood IRA | SoFi IRA |
|---|---|---|---|---|
| Outgoing transfer | Not confirmed; see Schwab's pricing page | $0 | $100 | $100 |
| Match lost if you leave early | None, no match paid | None, no match paid | Match on money held under 5 years | Matched money must stay 5 years |
The brokers that pay a match charge $100 to transfer out. Fidelity pays nothing and charges nothing, as the Fidelity IRA review details. Schwab's transfer-out fee is the one figure missing from this table.
Is a Schwab IRA worth it?
A Schwab IRA is worth it if you'll use the funds and the robo-advisor inside it, because the account itself costs nothing. The decision depends on the funds, the robo-advisor, and whether a match would pay you more. No independent rating covers Schwab's IRA on its own, so the scorecard here is cost and value: $0 to open and hold, no match, and a fee only on the less common trades.
Schwab competes on breadth, not bonuses. Schwab offers five IRA types and thousands of no-fee funds but no 1% match on contributions. A Schwab IRA fits a fund investor, a hands-off saver with $5,000, and a family handling an inherited or custodial account. A saver who will max an ETF-only Roth for five years and never move it earns more at a broker that pays a match, even after that broker's exit fee. If Schwab fits, you can open a Schwab IRA through Tweed's referral link.
Schwab IRA vs alternatives
The Schwab IRA's closest alternatives are Fidelity, which charges about the same, and Robinhood and SoFi, which pay a match Schwab doesn't. Our Webull vs Schwab comparison prices a fourth alternative, Webull's 3.5% Premium match, and our best Roth IRA accounts roundup compares eight providers on fees and the cost to transfer out.
| Schwab IRA | Fidelity IRA | Robinhood IRA | SoFi IRA | |
|---|---|---|---|---|
| Contribution match | None | None | 1%, or 3% with Gold | 1% |
| Transfer out | Not confirmed | $0 | $100 | $100 |
| Managed IRA fee | None, $5,000 minimum | $0 under $25,000, 0.35% of the whole balance from $25,000 | 0.25% | 0.25% |
| IRA types | Traditional, Roth, rollover, inherited, custodial | Traditional, Roth, rollover (others not checked) | Traditional, Roth | Traditional, Roth, SEP |
Is Fidelity or Schwab better for IRA?
Fidelity is better for an IRA built on index funds, because its ZERO funds carry a 0% expense ratio and it charges $0 to transfer out. Schwab is better for a hands-off saver with $25,000 or more, since Intelligent Portfolios charges no advisory fee at a balance where Fidelity Go charges 0.35% on every dollar. Neither pays a match. The Schwab vs Fidelity comparison covers the rest.
Schwab IRA vs Robinhood and SoFi
Robinhood and SoFi win on the match but cost more to leave, since both charge $100 to transfer out and hold matched money for 5 years. Schwab wins on funds and IRA types. The SoFi IRA review covers how SoFi's match is paid and taken back.
Run your retirement number before you pick an IRA
Run the Tweed retirement calculator with your real contribution and horizon, because a match and a fund's expense ratio both compound over decades. The best IRA accounts list compares Schwab with five other providers. If the Schwab IRA fits, open one through Tweed's Charles Schwab referral link.
Frequently asked questions about the Schwab IRA
Is my IRA safe at Schwab?
Yes, an IRA at Schwab is as safe as a brokerage account gets, because SIPC protects securities at a member broker up to $500,000, including $250,000 for cash claims, if the firm fails. SIPC does not cover market losses. Schwab's account-protection page lists its SIPC membership and any coverage beyond the SIPC limits.
Can I have a Schwab IRA and a 401(k)?
Yes, you can have a Schwab IRA and a 401(k) at the same time, because the IRS sets separate limits for each. A workplace plan doesn't reduce your $7,500 IRA limit. Roth eligibility depends on your income instead, not on whether you also save in a 401(k) at work.
Does a Schwab Roth IRA earn interest?
A Schwab Roth IRA earns interest only on cash left uninvested, at whatever rate Schwab's cash feature pays. That rate was not confirmed on Schwab's pages for this review. Money you invest earns what the investments return instead. Check Schwab's current cash rate before leaving a large balance idle, since cash yields differ widely between brokers.
Is a Schwab Roth IRA tax-free?
Yes, qualified withdrawals from a Schwab Roth IRA are tax-free, as at any broker, because the Roth rules come from the IRS, not Schwab. Contributions can come out at any time. Earnings taken before age 59½ and before the account is five years old can be taxed and penalized. So open the Roth IRA early to start the five-year clock.
Can I have a Roth IRA at Schwab and another at Fidelity?
Yes, you can have a Roth IRA at Schwab and another at Fidelity, or at any number of brokers. The annual limit applies to all of your IRAs combined, not to each account. In 2026 that shared limit is $7,500 before the age-50 catch-up, so splitting accounts never raises how much you can put in.
Can I roll a 401(k) into a Schwab Roth IRA?
Yes, you can roll a 401(k) into a Schwab Roth IRA, but the tax depends on the money. Roth 401(k) dollars move into a Roth IRA without tax. Pre-tax dollars moved into a Roth IRA count as a conversion and are taxed as income that year. This is why pre-tax money usually goes to a rollover IRA first.
What happens to my Schwab IRA when I die?
Your Schwab IRA passes to the beneficiaries named on the account, not to whoever your will names, because the beneficiary designation controls an IRA. A beneficiary can usually move the money into an inherited IRA, which Schwab offers. Review the names on the account after a marriage, divorce, or birth, since an outdated form still wins.
Sources
- https://www.ici.org/statistical-report/ret_26_q2
- https://www.schwab.com/ira
- https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
- https://www.schwab.com/pricing
- https://www.schwab.com/intelligent-portfolios
Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.
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