A strong market is boosting Americans’ nest eggs: Average 401(k), IRA and 403(b) account balances hit record highs in the third quarter, according to Fidelity’s latest data. Year over year, 401(k) balances are up 9% at $144,400, IRA balances up 7% to $137,902 and 403(b) balances up 10% to $131,200.
These six-figure averages across all retirement accounts is certainly something to savor. But if you’re a saver who hasn’t yet maximized all the ways you can build up wealth for your nonworking years, let this news be your cue to save even more.
How you can save more with an IRA
If you already have a 401(k) through your employer and you’re contributing enough to meet any match — that’s a must, it’s essentially free money — consider opening an IRA. We recommend this even if you haven’t yet maxed out your 401(k). (For 2025, contribution limits are $23,500 for individuals and $70,000 for combined employee and employers. Those 50 and older can make catch-up contributions.)
An IRA is another tax-advantaged account that diversifies your investments and can help you build more wealth for the future, especially at a time when you want to capitalize on any current market momentum. Since IRAs are set up by you, the individual, they also allow for more control over what you invest in and possibly lower fees than you get with a 401(k).
For 2025, you can contribute up to $7,000 total in all IRA accounts, or $8,000 if you’re 50-plus. You can easily set up an IRA and automate transfers into your account at the big brokerages, like Fidelity, Charles Schwab and Vanguard.
Fidelity InvestmentsMinimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance for robo-advisor to start investing
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over and this includes access to unlimited 1-on-1 coaching calls from a Fidelity advisor)
BonusInvestment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
ProsNo commission fees for stock, ETF, options tradesNo transaction fees for over 3,400 mutual fundsLimited-time special offersAbundant educational tools and resources24/7 customer serviceOver 100 brick-and-mortar branches across the U.S. for face-to-face supportConsFidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and overSome of Fidelity’s mutual funds require reaching specific thresholdsReports of platform outages during heavy trading daysCharles SchwabMinimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
BonusInvestment vehicles
Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Extensive retirement planning tools
Pros$0 minimum deposit for active investingNo commission fees for stock and ETF trades and no transaction fees for over 4,000 mutual fundsOffers extensive retirement planning toolsUsers can get on-demand advice from a professional advisor/Schwab expertRobo-advisor Schwab Intelligent Portfolios® available as a no-fee automated service option (with Premium version available for a fee)Award-winning thinkorswim® trading platforms and all their cutting-edge tools are now available at Schwab.24/7 customer support access by phone or chatCharles Schwab offers over 300 brick-and-mortar branches across the U.S. for in-person supportConsSpecific transactions may require commission feeRobo-advisor Schwab Intelligent Portfolios Premium charges a one-time planning fee of $300, then a $30 per month advisory fee. For that price, you get unlimited 1:1 guidance from a CFP, interactive planning tools, plus a personalized roadmap for reaching your goalsVanguardMinimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Vanguard account, but minimum $1,000 deposit to invest in many retirement funds; robo-advisor Vanguard Digital Advisor® requires minimum $100 to enroll
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock and ETF trades; zero transaction fees for over 3,000 mutual funds; $20 annual service fee for IRAs and brokerage accounts unless you opt into paperless statements; robo-advisor Vanguard Digital Advisor® charges up to 0.20% in advisory fees (after 90 days)
BonusInvestment vehicles
Robo-advisor: Vanguard Digital Advisor® IRA: Vanguard Traditional, Roth, Rollover, Spousal and SEP IRAs Brokerage and trading: Vanguard Trading Other: Vanguard 529 Plan
Investment options
Stocks, bonds, mutual funds, CDs, ETFs and options
Educational resources
Retirement planning tools
ProsNo commission fees for stock and ETF tradesNo transaction fees for over 3,000 mutual fundsOne of the largest ETF and mutual fund offerings aroundRobo-advisor Vanguard Digital Advisor® available for 90-day free trial with no advisory feesVanguard 529 Plan helps you save for college early onExcellent customer serviceOffers retirement planning toolsCustomers get access to GetHuman, a website dedicated to human-to-human customer service, with features that include talking to a Vanguard rep, notice of the current hold time, reminders to call when call center opens, as well as pro tips and talking points for customersVanguard Personal Advisor Services® available for personalized supportCons$20 annual service fee for IRAs and brokerage accounts (investors can waive this fee by opting into paperless statements)Robo-advisor Vanguard Digital Advisor® requires minimum $100 to enroll and charges up to 0.20% in advisory fees (after 90 days)Basic trading platform onlyNo robust research and data toolsWho should consider a robo-advisor
If you aren’t sure where exactly to invest your money once you open an IRA, you can go through a robo-advisor instead. Robo-advisors are generally good options for really anyone who wants to simply go on autopilot.
Robo-advisors use computer algorithms and data to automatically invest on your behalf. These software platforms will tailor your IRA investments to your overall goals, time horizon and risk tolerance, making it so you can be more hands-off. The best robo-advisors, like Betterment and Wealthfront, charge low advisory fees and automatically rebalance your portfolio given different market conditions.
BettermentMinimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. For example, Betterment doesn’t require clients to maintain a minimum investment account balance, but there is a ACH deposit minimum of $10. Premium Investing requires a $100,000 minimum balance.
Fees
Fees may vary depending on the investment vehicle selected, account balances, etc. Click here for details.
Investment vehiclesInvestment options
Stocks, bonds, ETFs and cash
Educational resources
Betterment offers retirement and other education materials
Terms apply. Does not apply to crypto asset portfolios.
ProsNo trade or transfer feesGood for automated investingCustomizes users’ portfolios around their financial goals, timeline and risk toleranceUsers can assign specific investing goals (short- and long-term) to each portfolio and invest using different strategies (less and more risk)Quick and easy to set up accountAble to sync external retirement accounts to your Betterment retirement goal so all your accounts are in one place. Premium plan users get unlimited access to a financial advisor (otherwise, one-time advisor consultations cost a fee ranging from $299 to $399)Advanced features include automatic rebalancing, tax-saving strategies and socially responsible investingConsBase price for investing accounts is $4/month – recurring monthly deposits totaling $250, or total Betterment account balances reaching $20,000, automatically switch you to an annual price of .25% of your investing account balances Premium plan requires $100,000 minimum balanceWealthfrontMinimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. $500 minimum deposit for investment accounts
Fees
Fees may vary depending on the investment vehicle selected. Zero account, transfer, trading or commission fees (fund ratios may apply). Wealthfront annual management advisory fee is 0.25% of your account balance
Bonus
Get $30 bonus when you fund your first taxable investment account
Investment vehiclesInvestment options
Stocks, bonds, ETFs and cash. Additional asset classes to your portfolio include real estate, natural resources and dividend stocks
Educational resources
Offers free financial advice for college planning, retirement and homebuying
ProsNo trade or transfer feesGood for automated investingPicks investments based on user’s risk tolerance and time until retirementOffers a cash management checking account with a debit cardTax-loss harvesting to reduce the taxes you pay:Â Fund your first taxable Investment Account and get a $50 bonus.Cons$500 minimum deposit0.25% management feeMaking the case for a Roth IRA
If you’re a younger saver, matching a 401(k) with a Roth IRA is the move. In fact, it seems to already be the case, as Fidelity’s Q3 data found that Gen Z is investing 95% of their IRA contributions in Roth accounts.
With 401(k)s and traditional IRAs, you pay taxes when you withdraw, but with Roth IRAs, you don’t pay taxes on withdrawals since your Roth IRA contributions are made using after-tax dollars.
And since you really shouldn’t touch your 401(k) funds before retirement, a Roth IRA offers a bit more leeway if for some reason you need access to your contributions early on: Roth IRA contributions can be withdrawn at any time penalty-free and Roth IRA earnings have exceptions to its early withdrawal penalty that include taking out funds for first-time home purchases, college expenses and birth or adoption expenses.
For all these reasons, Roth IRAs are generally great options for younger savers, especially those likely in lower tax brackets today than they will be in the future. Roth IRAs also have income limits of who can contribute, so they may not be an option as you grow in your career and make more money.
You can open a Roth IRA at the same places that offer traditional IRAs, like brokerages and robo-advisors.
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