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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Schaefer Light on October 01, 2014, 02:46:11 PM

Title: Roth IRA Annual Fees...what's normal?
Post by: Schaefer Light on October 01, 2014, 02:46:11 PM
I've had a Roth IRA with Wells Fargo for several years now, and they've significantly increased their annual fees in the past 2-3 years.  It used to be $30 or $40 per year, but it's now up to $95.  As I don't use them for investment advice, I feel like paying an annual fee this high is a big waste of money.  Do other banks charge annual fees for holding a Roth IRA with them?  If they do, are they charging anything close to $95 per year?

Thanks in advance.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: RWD on October 01, 2014, 02:54:03 PM
Sign up with Vanguard (https://personal.vanguard.com/us/content/Funds/FundsVanguardFundsLowBalanceDisclaimerJSP.jsp) maybe? Their annual fees are $0 if you go paperless.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: amha on October 01, 2014, 03:08:19 PM
$0 is normal! At least that's what Vanguard charges!
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: wtjbatman on October 01, 2014, 03:41:31 PM
I'm charged $0 at TD Ameritrade, Sharebuilder, and Vanguard.

Time to say goodbye to Wells Fargo.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: Beric01 on October 01, 2014, 03:55:18 PM
As others have said, go with Vanguard. It's free with paperless statements.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: Terrestrial on October 01, 2014, 09:48:42 PM
My fees are also $0 (USAA Brokerage).  Frankly this was a surprising topic to see...I was unaware there were places that charged you an annual fee for an IRA, I had never seen one before.

Almost $100/year is highway robbery for them providing you nothing other than the privilege of holding your money.  If it was a flat fee and no trading commissions it would probably still be a really bad deal but at least a little more palatable.    I'd roll that thing over to vanguard, or any host of other decent companies first thing tomorrow morning.

$100/year over 30 years will cost you about 10g's in lost earnings.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: Melf on October 02, 2014, 07:41:34 AM
I think I was charged $75 per year maintenance fee for my Roth at Morgan Stanley-Smith Barney.  I'm now with Vanguard.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: Schaefer Light on October 02, 2014, 09:23:58 AM
My fees are also $0 (USAA Brokerage).  Frankly this was a surprising topic to see...I was unaware there were places that charged you an annual fee for an IRA, I had never seen one before.

Almost $100/year is highway robbery for them providing you nothing other than the privilege of holding your money.  If it was a flat fee and no trading commissions it would probably still be a really bad deal but at least a little more palatable.    I'd roll that thing over to vanguard, or any host of other decent companies first thing tomorrow morning.

$100/year over 30 years will cost you about 10g's in lost earnings.
My thoughts exactly on the lost earnings.

I posted this topic because none of the big banks seem to advertise their fees on the web.  Now I can see why.

Thanks to everyone who's posted for providing feedback.  My contribution for 2014 will definitely be going to Vanguard.  Bye, bye, Wells Fargo.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: El Marinero on October 02, 2014, 12:14:01 PM
My contribution for 2014 will definitely be going to Vanguard.  Bye, bye, Wells Fargo.


Is there anything preventing you from transferring your existing account to Vanguard today?

'Cuz that would be badass.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: GGNoob on October 02, 2014, 02:20:40 PM
My contribution for 2014 will definitely be going to Vanguard.  Bye, bye, Wells Fargo.


Is there anything preventing you from transferring your existing account to Vanguard today?

'Cuz that would be badass.

Yes, you should move your existing IRA to Vanguard as soon as possible.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: Schaefer Light on October 03, 2014, 07:27:21 AM
My contribution for 2014 will definitely be going to Vanguard.  Bye, bye, Wells Fargo.


Is there anything preventing you from transferring your existing account to Vanguard today?

'Cuz that would be badass.
Transfer to Vanguard is done.  Well, technically it's being processed and may take 7-10 days ;). 

It's not quite as badass as if I'd done it yesterday, but I didn't have all of my paperwork handy.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: El Marinero on October 03, 2014, 09:00:22 AM
I'd say that you showed an adequate level of badassity.

it feels good to take action, doesn't it.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: Schaefer Light on October 03, 2014, 11:18:46 AM
I'd say that you showed an adequate level of badassity.

it feels good to take action, doesn't it.
Yes, it does.  And it feels even better knowing I won't have to pay a $95 annual fee next year.
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: Ybserp on October 03, 2014, 01:30:47 PM
My contribution for 2014 will definitely be going to Vanguard.  Bye, bye, Wells Fargo.

Good for you!
Title: Re: Roth IRA Annual Fees...what's normal?
Post by: sobezen on October 03, 2014, 02:07:48 PM
My Roth has never cost me any annual fees. Used Scottrade, Fidelity, TD, Datek, Schwab and now Vanguard for Admiral class shares. Point is you should be able to transfer to a new brokerage like Vanguard or Scottrade and have no annual fees. All depends on if you want to actively trade if so consider Scottrade. Cheers!