Typical IRA Custodian Fees

Dealing with an IRA custodian is part of the process of owning an IRA. As an investor, you may get used to the idea of paying IRA custodian fees of some kind. Here are the basics of typical IRA custodian fees and what you should expect to pay.

IRA Custodian Fees

In order to have an individual retirement account, or IRA, you are required by the government to keep your funds with a custodian. This comes in the form of a financial broker. This broker will take care of your funds while you are investing and then distribute them to you once you reach the age of 59 1/2. In the meantime, most IRA custodians will charge some type of fee for their services.

Depending on how much a custodian does for you, the fee could vary greatly. If the custodian makes investment decisions for you, he or she will charge you a greater commission for those service. However, if you do all the work, the fee will usually be less.

In most cases, you will have an annual fee of somewhere between $20 and $50. However, some brokers also charge a small percentage of the value of the account, such as 1 percent. If you feel as though you are paying too much, do not hesitate to shop around for the lowest fees.

blog comments powered by Disqus