An individual retirement account (IRA) allows you to save and invest money for retirement with tax advantages.

We offer 2 types of IRAs: Roth and traditional. A Roth IRA offers tax-free growth potential on after-tax contributions. With a traditional IRA, your investments have the opportunity to grow tax-deferred and you may be eligible for a tax deduction on your contributions.

Each year, the IRS sets a maximum amount that you can contribute across all of your IRAs. This includes IRAs outside of Robinhood. For 2024, the contribution limit is $7,000 for people under age 50, and $8,000 for people age 50 and over.

You can add money to your IRA in 2 ways:

• Make annual IRA contributions that count toward your limit
• Transfer or roll over money from another retirement account. There is no limit to the amount you can transfer or roll over.

Also, keep in mind you can still contribute to your IRA for 2023 until April 15, 2024.

When you fund a Robinhood IRA, we’ll give you up to a 2% boost—also called a match—on contributions. That means we’ll add 2% on every annual retirement contribution you make, up to your 2024 annual contribution limit.

Disclosures:

You must have earned taxable compensation income in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least five years to avoid a potential Early IRA Match Removal Fee. For more information, visit the IRA Match FAQ.

Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59½ may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.

The Robinhood IRA is available to any U.S. customer with a Robinhood investing account in good standing.

All investments involve risk and loss of principal is possible.

You can withdraw money from your IRA anytime, but you may have to pay taxes and penalties.

If you have a Roth IRA, you can withdraw contributions without a tax penalty. However, if you withdraw any earnings early, you may have to pay both taxes and penalties unless you’re age 59½ and have had your IRA for 5 or more years, or qualify for a tax exception.

If you have a traditional IRA, you’ll typically pay a 10% penalty on top of the expected income taxes you’ll owe if you make a withdrawal before you’re age 59½. However, depending on the reason for your withdrawal, you may qualify for a tax exception. Make sure you keep your contributions in your Robinhood IRA for at least 5 years to keep all of your match money.

Learn how to make a withdrawal.

With your Grubhub partner IRA match, you’ll earn 1-3% extra every time you make an annual contribution to your IRA up to the contribution limit. In 2024:

• If you’re under age 50, you can earn up to $210 extra and contribute $7,000 within 1 year of claiming your match
• If you’re age 50 or over, you can earn up to $240 extra and contribute $8,000 within 1 year of claiming your match

If you’re making a regular annual contribution, you’ll usually get your IRA match money as soon as your deposit is complete. Just remember to keep your contributions in your Robinhood IRA for at least 5 years to keep all of your match money.

No, your Grubhub partner IRA match isn’t the same as an employer’s 401(k) match. Here are some key differences:

• An IRA is a retirement account and 401(k) is an employer-sponsored retirement plan.
• You can have a Robinhood IRA even if you don’t have an employer. You can only have a 401(k) with an employer. Limitations apply to both types of retirement accounts. Review the IRS's IRA deduction limits for more information.
• Your Grubhub partner IRA match only lasts 1 year from the date you claim your match. Then your match rate will be 1%.

Disclosures:

Robinhood and GreenPath Financial Wellness are separate and unaffiliated companies, and are not responsible for one another’s policies, services, or opinions. Fees may apply to certain services offered by GreenPath.

Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.

You’ll stop earning any additional match on retirement contributions—but you’ll still earn a 1% match from Robinhood and have access to everything we offer, including no commission fees, 24/7 customer support, and more.

You also won’t be able to call the exclusive GreenPath Financial Wellness phone number for Grubhub partners. But you can still get financial counseling from GreenPath by calling 1-800-550-1961.

Disclosures:

Robinhood and GreenPath Financial Wellness are separate and unaffiliated companies, and are not responsible for one another’s policies, services, or opinions. Fees may apply to certain services offered by GreenPath.

Other fees may apply.

Each type of IRA has unique benefits. You can have a Roth or traditional IRA even if you already have a 401(k).

With a Roth IRA:

• You’re only eligible to contribute to a Roth IRA if you make under a certain amount per year
• You contribute after-tax dollars. This means your contributions aren’t tax-deductible.
• You can withdraw contributions anytime with no penalties or fees
• If you withdraw earnings before you’re age 59½—and before you’ve owned your Roth IRA for at least 5 years—you may have to pay a 10% tax penalty
• You aren’t required to make a withdrawal after you reach a certain age

Learn more about Roth IRAs.

With a traditional IRA:

• You generally contribute pre-tax dollars. This means you may be able to take a tax deduction for the amount you contribute—which could help you save on taxes each year.
• You can start withdrawing money without any penalties once you’re age 59½. You’re generally taxed on the amount you withdraw.
• If you need to make a withdrawal before you’re age 59½, you can—but you may have to pay a 10% penalty
• After you turn 73, you must withdraw a minimum amount each year from your traditional IRA to avoid tax penalties

Learn more about traditional IRAs.

Disclosures: This is not investment or tax advice.

To decide which IRA is right for you, first find out your eligibility:

You’re typically eligible for a Roth IRA if:

• You’re filing taxes as single or head of household and your modified adjusted gross income (MAGI) is be under $153,000 for 2023 or $161,000 for 2024
• You’re filing jointly as a married couple and your MAGI is under $228,000 for 2023 or $240,000 for 2024

Learn more about Roth IRAs.

You’re usually eligible for a traditional IRA if:

• You’ve earned any amount of income this year

Learn more about traditional IRAs.

If you’re eligible for both types of IRAs, you may want to consider whether you want tax benefits now or in the future.

A Roth IRA may be right for you if you:

• Want tax-free withdrawals in retirement
• Want to have access to your IRA money before retirement
• Expect to be in a higher tax bracket after you retire

A traditional IRA may be right for you if you:

• Want to potentially save on taxes this year
• Don’t expect to use any IRA money before retirement
• Expect to be in a lower tax bracket after you retire

Learn more about traditional IRAs.

Disclosures: This is not investment or tax advice.

Yes! With a Robinhood IRA, it’s simple to set up automatic—or recurring—contributions. You can choose a schedule that works for you:

• Weekly, for a contribution initiated every Monday
• Twice-monthly, for a contribution initiated on the 1st and 15th of every month
• Monthly, for a contribution initiated on the 1st of every month
• Quarterly, for a contribution initiated on the 1st of January, April, July, and October

Set up recurring investments.

We offer 2 types of IRAs: Roth and traditional. Each has special tax advantages.

Roth IRA tax advantages:

• You contribute after-tax dollars.
• Your potential IRA earnings grow tax-free because you pay taxes upfront.
• You won’t pay any taxes when you make qualified withdrawals as long you’re age 59½ and have had your IRA for 5 years

You should also know:

• Your contributions aren’t tax-deductible.
• If you withdraw any earnings before you’re age 59½ or before you’ve had account for 5 years, you’ll likely have to pay penalties and taxes

Traditional IRA tax advantages:

• You generally contribute pre-tax dollars. This means you may be able to take a tax deduction for the amount you contribute—which could help you save on taxes each year.
• Your contributions and any potential earnings grow tax-deferred—because you usually pay taxes once you start making withdrawals

You should also know:

• You’re required to withdraw a certain amount every year once you’re age 73, or else you may have to pay a penalty
• If you have a 401(k) through an employer, you may have to deduct less than you would otherwise

To learn more about the tax advantages of IRAs, visit the IRS website or talk to a tax advisor.