Tony Novak profile picture
  "AskTony" column archive        


Most Popular

AskTony Archive

This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

New questions

Submit consumer finance questions at and health insurance questions at

Sponsored by: Insurance Exchange - your source of valuable information on state and federal health reform benefits.

Core Health Insurance - America's favorite mini-med insurance  with affordable premiums, freedom to choose providers, optional PPO discounts and guaranteed eligibility regardless of medical conditions.

Please support the Web sites that make publication of AskTony services possible.

Cost to open IRA account

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: How much does it cost to open an IRA account?

A: There is no cost if you use one of the firms that specializes in no fee IRAs. There are no transfer fees, account fees, commissions1, annual fees or termination fees. This is one of the best deals available in the financial services industry. Not only are there no fees charged by the new IRA firm, but right now (until April 16, 2007) if you are transferring an existing IRA from another firm then the new firm may reimburse you for any charges that the former firm charged to transfer the money. I now use Scottrade for my own account and clients' accounts and have been pleased with this service. It is especially important to know that Scottrade accounts allow independent investment adviser support, but this is completely independent and that there are no "built-in" requirement of fees for this service. In other words, help is available when and if you want it but you will not pay anything unless you specifically ask for independent help. In contrast, most other banks or investment firms automatically built-in a fee for support service, usually through a commission-based account representative. More information is available from Scottrade through the links at . This firm was recognized by Kiplinger Personal Finance as "best low cost IRS". 1 These IRA accounts have no commissions and some basic cash funds and investment options like a money market fund may be available without any commission. Most investment transactions selected by IRA owners do require a commission payment. For example, if you buy a stock or fund, the commission would be $7.


More resources: Scottrrade IRA Instructions