What custodians have low or no annual fees? Options

[John G]

READERS - post your experience about fees charged by brokerages and any rules that enable you to have a lower fee structure. This can help readers save some time.

John G - moderator

[John G]

Etrade - no fees, but read the fine print below!

No annual fee or minimum amount for IRA/Roths, conditioned upon acceptance of electronic statements and confirms. If you require paper statements and confirms, you can still open an IRA account through E*TRADE Securities, but it will be free only if you maintain a balance of $25,000 or more.

Beginning in 2004, E*TRADE Securities will suspend the $25 annual custodial fee for Traditional, Roth, Rollover and SEP-IRAs for existing customers who accept electronic statements and confirms or have combined assets over $25,000 in E*TRADE Securities and E*TRADE Bank accounts.

Other fees may still apply, including but not limited to mutual fund management fees, brokerage commissions, early withdrawals, and excess contributions.

All fees subject to change, including possible reinstatement of the IRA custodial fee.

Edited for space. Not an endorsement of this firm.

[John G]

Charles Schwab (from their website)

For Account Balance < $10,000 or combined household account balance -- Annual fee or Roths/IRAs is $50 payable in December

$10,000 to 50,000 balance - - Annual fee of $40

Over $50,000 - - no annual fee

Account opened years ago may still qualify for the lifetime waiver. It looks to me like after the dot.com bust and the decline in trading, all of the Schwab fees increase.

[John G]

Vanguard Mutual Funds

Vanguard charges a custodial fee of $10 a year for each IRA mutual fund account with a balance of less than $5,000. We automatically waive this fee if you have assets totaling $50,000 or more at Vanguard in any combination of accounts—IRAs, employer-sponsored retirement plans, brokerage accounts, and annuities.

Minimum to open $1,000.

[John G]

Fidelity (from their website)

Fidelity's No-Fee IRA - No annual maintenance fee with an IRA Brokerage Account - for owning Fidelity Funds, individual securities, or any of over 4,000 mutual funds from other investment management companies, for both new and existing brokerage IRA customers.

Fidelity has eliminated the $50 brokerage account fee for Traditional, Roth, Rollover, and SEP IRAs. Other fees still apply, including mutual fund management fees and expenses, low-balance fees and short-term trading fees on certain mutual funds, brokerage commissions, and account closing fees.

When folks migrate away from high cost accounts, even the biggest firms like Fidelity take notice.

[Appleby]

Bump...good topic

TD Ameritrade does not charge an annual maintenance fee http://www.tdameritrade.com/retirementaccountsdetail.html

[John G]

In general.....

1. Shop around. Information above may not be current. In prio years, economic pressure forced account fees and custodial fees down. In the 2009 market climate, that might change.

2. ASK ! I found that many institutions will waive fees if you just ask. Retirement funds tend to stay in one account for a long time. Institutions love retirement money and fight to get it.

3. Use you personal leverage - low fees are common when total assets at an institution are significant. While you want to choose a home for retirement accounts where your investment choices meet your needs, I would start shopping at institutions where you already have some kind of relationship.

4. Don't sweat small fees. This can be like focusing on a splinter when you are trying to build a deck. Keep you eye on the overall goals of your retirement plan. Starting early, making your contributions and choosing your investments are far more significant.