RISINGIRS, FidelityFebruary 2026🇺🇸 USFinance
📊

401k vs IRA vs Roth vs Brokerage — Which Account Grows Your Money Fastest?

With 2026 contribution limits at $23,500 for 401k and $7,000 for IRA, choosing the right mix of investment accounts can save tens of thousands in taxes over your lifetime. This calculator compares growth projections across 401k, Traditional IRA, Roth IRA, and taxable brokerage accounts.

Concept Fundamentals
$23,500
401k Limit
2026 max
$7,000
IRA Limit
2026 max
$50K+
Tax Savings
Over 30 years
Tax-Free
Roth Edge
Withdrawals

Ready to run the numbers?

Why: Choosing the right account type (401k, Traditional IRA, Roth IRA, or taxable brokerage) can mean tens of thousands of dollars in tax savings over your lifetime. Tax-advantaged accounts defer or eliminate taxes on growth, while taxable accounts incur annual tax drag.

How: This calculator compares projected growth across platforms and account types, factoring in contribution limits, expense ratios, tax brackets, and fee structures. It models the compounding impact of fees and taxes over your investment horizon.

How 401k vs IRA vs Roth vs brokerage compare in after-tax wealth2026 contribution limits and how they affect your strategy
Methodology
📊Multi-Platform Comparison
Compare fees and growth across five major platforms
💰Tax-Aware Modeling
Factor in tax brackets and account type impact
📈Growth Projections
Visualize portfolio growth over time with fees deducted
Sources:IRSFidelity

Run the calculator when you are ready.

Compare Account TypesSee which investment accounts maximize your after-tax wealth

Platform & Account

Investment Amounts

Strategy

Options & Tax

Tax-Advantaged vs Taxable Growth

10yr (Tax-Adv)
~1.15x
vs taxable
20yr (Tax-Adv)
~1.35x
vs taxable
30yr (Tax-Adv)
~1.60x
vs taxable

Roth vs Traditional IRA Decision Matrix

Roth IRA: Choose if current tax bracket < expected retirement bracket. Tax-free withdrawals.
Traditional IRA: Choose if current bracket > expected retirement bracket. Tax deduction now.

2026 Contribution Limits

401(k)$23,500
IRA$7,000
investment_comparison.sh
CALCULATED
$ compare_platforms --horizon=20yr --platform=robinhood
Total Fees Over Time
$1,592.01
Portfolio at Horizon
$60,738.01
Fee Impact on Growth
$3,090.83
Best Platform
Schwab
Effective Fee Rate
2.55%
Tax Impact (Est.)
$2,004.354
Opportunity Cost
$0
Selected Platform
Robinhood
Share:

💰 Tax Drag Impact

Taxable Account
0.26%
Annual tax drag
~$81/yr lost
Tax-Advantaged
$0
Tax drag (deferred/exempt)
30-Year Difference
$17,007
Compounded impact
Investment Account Comparison
Robinhood
$60,738.01
📊 20 years💰 $100/mo📈 Best: Schwab
numbervibe.com/calculators/trending/investment-account-comparison-calculator

Fee Comparison Across Platforms

Portfolio Growth Over Time (Fees Deducted)

Fee Breakdown: Robinhood

📐 Calculation Breakdown

INPUTS
Expected Annual Return
8%
Moderate (7-9%)
Investment Horizon
20 years
ext{Total} ext{contribution} ext{period}
Total Contributions
$25,000
ext{Initial} + ext{Monthly} imes 12 imes ext{Years}
FEES
TOTAL FEES (Selected Platform)
$1,592.01
Commissions
$0
ext{Options} ext{contracts} imes 2 imes ext{Trades}
Account/Subscription Fees
$1,200
ext{Monthly} ext{fees} ext{over} ext{horizon}
Expense Ratio Cost
$375.62
ext{ER} imes ext{Avg} ext{portfolio} ext{value}
RESULT
PORTFOLIO AT HORIZON
$60,738.01
BEST PLATFORM
Schwab
ext{Highest} ext{projected} ext{balance}
IMPACT
Effective Fee Rate
2.55%
ext{Fees} / ( ext{Portfolio} + ext{Fees})

For educational and informational purposes only. Verify with a qualified professional.

What is an investment account comparison calculator?

An investment account comparison calculator helps you compare brokerage platforms like Robinhood, Fidelity, Schwab, and Vanguard by analyzing fees, projected growth, and tax impact. It shows how platform fees, expense ratios, and account types affect your long-term returns so you can choose the best brokerage for your strategy.

What are the key takeaways for comparing investment accounts?

  • Zero-commission trading is now standard — Robinhood, Fidelity, Schwab, and Vanguard all offer $0 stock/ETF trades
  • Options fees vary: Fidelity and Schwab charge $0.65/contract; Vanguard charges $1; Robinhood Gold includes options
  • Expense ratios matter most for long-term index investors — Schwab index funds average 0.03%, Vanguard 0.20%
  • Invest America (Trump program) offers $0 fees for kids accounts with a $100 initial deposit bonus

💡 Did You Know?

📉A 1% annual fee can cost 28% of your portfolio over 30 years due to compoundingSource: SEC.gov
🆓Schwab and Fidelity pioneered zero-commission trading in 2019; Robinhood forced the industry shiftSource: Investopedia
💰Payment for order flow (PFOF) generates revenue for Robinhood — estimated 0.02% per tradeSource: SEC.gov
📚529 plans offer tax-free growth for education — no federal tax on qualified withdrawalsSource: FINRA
👶Custodial UTMA/UGMA accounts transfer to the child at age 18-21 depending on stateSource: NerdWallet
🇺🇸Invest America kids accounts are limited to approved investments — similar to 529 restrictionsSource: News sources

📖 How Brokerage Fees Impact Long-Term Growth

Brokerage fees come in multiple forms: commissions (per-trade), account fees (monthly subscriptions), expense ratios (fund management), and spreads (bid-ask, PFOF). Even small differences compound over decades.

Tax-Advantaged Accounts

Roth IRA, Traditional IRA, and 529 plans offer tax-free or tax-deferred growth. Use our IRA Contribution Optimizer to maximize contributions.

Kids & Custodial Accounts

Invest America and custodial (UTMA/UGMA) accounts help families build wealth for children. Compare features: Invest America offers a $100 bonus; custodial accounts have no contribution limits.

🎯 Expert Platform Selection Tips

💡 Passive Index Investors

Fidelity and Schwab offer zero-fee index funds. Vanguard has the lowest ERs for many ETFs. Use our DCA Calculator for contribution timing.

💡 Active Options Traders

Schwab and Fidelity charge $0.65/contract. Factor in trading frequency — 10 contracts/month = $156/year in fees.

💡 Beginners on a Budget

Robinhood has no minimums. Avoid Robinhood Gold ($5/mo) unless you need margin — that's $60/year eating into returns.

💡 Kids & Education Savings

Invest America: $100 bonus, $0 fees. 529 plans: tax-free growth for college. Compare both with our Student Loan Calculator.

⚖️ Platform Comparison at a Glance

PlatformStock CommissionOptions/ContractAccount MinAvg ER
Robinhood$0$0$08.00%
Fidelity$0$0.65$012.00%
Schwab$0$0.65$03.00%
Vanguard$0$1$300020.00%
Invest America$0$0$015.00%

❓ Frequently Asked Questions

Which brokerage has the lowest fees?

For stocks/ETFs, all major platforms offer $0 commissions. Schwab and Fidelity have the lowest expense ratios for index funds (0.03-0.12%). Invest America offers $0 fees for kids accounts with a $100 bonus.

What is payment for order flow (PFOF)?

PFOF is when market makers pay brokers for order flow. Robinhood uses PFOF; the SEC estimates it costs retail investors ~0.02% per trade. Fidelity and Schwab have reduced PFOF reliance.

Is Robinhood Gold worth it?

Robinhood Gold costs $5/month ($60/year). It offers margin trading and larger instant deposits. For buy-and-hold investors, the free tier is usually sufficient.

What is Invest America?

Invest America is a Trump administration program offering kids investment accounts with $0 fees and a $100 initial deposit bonus. Investments are limited to approved options.

How do I choose between a brokerage and an IRA?

Use a brokerage for taxable investing. Use a Roth IRA for tax-free growth (income limits apply). Use a Traditional IRA for tax deductions. Our <a href="/calculators/trending/ira-contribution-optimizer" className="text-blue-600 hover:underline">IRA Optimizer</a> can help.

What expense ratio should I target?

Index funds typically charge 0.03-0.20%. Aim for under 0.20% for core holdings. A 1% ER can cost 28% of your portfolio over 30 years.

How do 529 plans compare to custodial accounts?

529 plans offer tax-free growth for education; withdrawals are tax-free for qualified expenses. Custodial (UTMA/UGMA) accounts have no withdrawal restrictions but no tax benefits.

Should I use multiple brokerages?

Many investors use one primary brokerage for simplicity. Diversifying across platforms can provide redundancy but adds complexity. Compare fees for your specific use case.

📊 Brokerage Landscape by the Numbers

$0
Stock Commission
$0.65
Options (Fidelity/Schwab)
0.03%
Schwab Index ER
$100
Invest America Bonus

⚠️ Disclaimer: This calculator provides estimates based on publicly available fee data. Actual fees may vary. Past performance does not guarantee future results. This is not financial advice. Consult a licensed advisor and verify fee schedules with each broker before investing.

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