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$10 annual custodial fee on each fund in your Roth IRA with a balance of less than $5,000.

The low-balance index fund fee is in addition to the custodial fee on each fund. So, if you're only invested in 1 index fund, and your Roth IRA balance is less than $5,000, you pay $20/year just to be in that one index fund.

This is what I don't like about Vanguard, they nickel and dime small investors to death with their myriad fees!

I would check out Fidelity's fees, as I think they might actually be cheaper in the OPs case. They advertise their IRAs as "No Fee IRA", so I don't believe there is a 'custodial' fee. In addition, I know their Spartan S&P 500 index fund has an ER of .10, lower than Vanguards. I don't know if they have index funds that will match the OPs other choices though.

As to some other funds, I grabbed this from their website:

Fidelity may deduct a small balance maintenance fee of $12.00 from a fund balance with a value less than $2,000. Fund positions opened after September 30 will not be subject to the fee. This fee will not be deducted from fund positions opened after January 1 of the calendar year if those positions use regular investment plans. Refer to the fund prospectus for details.

Once the OP has over $10K in the IRA, he could then consider transferring it to Vanguard.

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