Ally Invest Self Directed IRA Review 2024: Features, Fees, & More

Best If You Want

An Ally Invest IRA account offers users the opportunity to invest in a broad range of assets at low fees—and to choose between automated and active investing. (Although the Ally Invest robo-advisor is well regarded, this Ally Invest review will focus primarily on its self-directed trading account options, and specifically on its retirement account choices.)

Ally Invest is a particularly good option for those who already have an Ally Bank account since it allows them to manage both everyday spending and investing for the future in one easy-to-use platform. While its trading platform could benefit from more integrated third-party research choices and educational tools, it stands out among online brokers for its low fees and $0 minimum deposit. The Ally mobile app is also available for both Android and Apple to allow investors to manage their accounts and choose different investment options no matter where they are.

Ally Invest IRA Fees

Ally is well known for its low fees, though the specifics do depend on your investment choices. Ally offers $0 trades on stocks and many ETFs, and boasts one of the lowest contract fees for options trades on the market at just $0.50 (with no commission).

While there’s no account management fee, Ally’s annual advisory fee depends on your investment portfolio and the type of investing you choose. for example, those with Ally Invest robo portfolios will pay a 0% advisory fee for cash-enhanced robo portfolios, while the market-focused robo portfolios are charged a 0.30% annual fee.

For active traders investing directly with Ally, a 0.75-0.85% blended annual advisory fee applies.

Bond trades are subject to a $1 per trade fee (at least $10 and up to $250 per transaction), and various service fees for things like paper statements and 1099 requests may apply.

What You Can Invest In

Ally allows you to invest in stocks and ETFs (many of which offer commission-free trading) as well as options, bonds, and mutual funds. Ally also offers margin trading, which can help you maximize your investment by using borrowed funds to get in on assets you might otherwise not be able to.

Limitations

As mentioned above, Ally’s trading tools could have better third-party research and educational tool integration, like advanced charting tools, to help investors make the most of their investment choices.

Also, Ally robo portfolios do not come with automatic tax loss harvesting.

Account Minimums

Ally Invest does not carry a minimum account balance or initial deposit for self-directed brokerage cash accounts, though a $2,000 minimum initial deposit applies for margins trading accounts, and robo portfolios carry a $100 minimum initial deposit.

Customer Support

Ally offers customer support via telephone and online chat. Its customer service team can be reached by phone Monday through Friday from 8 a.m. to 11 p.m. Eastern Time and Saturday from 9 a.m. to 7 p.m. Eastern Time at 1-888-925-2559.

Unfortunately, the customer service reviews for Ally are on the lower end on third-party review sites like TrustPilot and the Better Business Bureau.

Account Types

Ally offers three different types of retirement accounts: traditional IRAs, Roth IRAs, and rollover IRAs.

Traditional IRA

Traditional IRAs are tax-incentivized retirement accounts that allow the account holder to make tax-deductible contributions in exchange for tax-deferred investment growth. Withdrawals are taxed as regular income in retirement time.

Like all IRAs, traditional IRAs are subject to annual contribution limits that govern how much money can be put into any and all IRAs a person may own for each given financial year. For 2024, the annual contribution limits are $7,000 for those up to age 50, and $8,000 for those aged 50 or over.

Roth IRA

Roth IRAs work in the opposite way as traditional IRAs: Contributions are made on an after-tax basis, which means they’re not tax deductible in the short term, but you’ll get tax-free withdrawals come retirement time. Roth IRAs are still subject to the same contribution limits and also have income eligibility limits, which means if you own over a certain threshold, you won’t be eligible to contribute. A tax professional can help you learn more.

Rollover IRA

Rollover IRAs can be either traditional or Roth, though the tax structure must match the old retirement account you’re rolling over, be it a 401(k), 403(b), or even another IRA. Rollover IRAs are outside of the regular contribution limits: You can roll over as much money from an old retirement account into a new rollover IRA each year as you have. (However, you’ll still only be able to put in up to the contribution limit in new funds.)

Other Features

One of the reasons Ally is such an attractive option for those looking for a home for their retirement accounts is its suite of other features, including bank account products (both checking and savings) as well as credit cards, as well as mortgages, auto loans, personal loans, and more. Opening an Ally Invest account will allow existing customers to have a one-stop shop for most of their financial needs, all in one place.

Considering an Ally Invest Self-Directed IRA?

Ally Invest is a great place to open a new retirement account—or roll over an old retirement account like a 401(k). You’ll have access to a wide range of investment options with low fees, all in an easy-to-use web platform that’s well integrated with other financial services.

Not sure how to get started on the 401(k) rollover process? Capitalize is here to help. We’ll walk you through every step of the way so you can make the most of your hard-earned retirement money.