IRA contribution adjustments | Robinhood

IRA contribution adjustments

Before you begin

These events can be complicated, are tax-reportable, and may be taxable. We recommend you review these with a qualified tax professional before requesting them.

IRA contribution adjustments help you correct mistakes, stay compliant with IRS rules, and avoid potential tax penalties.

Submit a contribution adjustment

  1. Contact support to request and confirm the appropriate adjustment
  2. Receive a Docusign form from Robinhood
  3. Review detailed instructions on the Docusign form and common rejection reasons to avoid delays
  4. Complete and submit your form

Processing takes 1–3 business days and you'll get a confirmation email when it's complete. If rejected, we’ll email you with the reason and next steps.

Recharacterizations

A recharacterization moves a contribution between Traditional and Roth IRAs. It’s commonly used when you:

  • Contributed to a Roth IRA but exceeded IRS income limits
  • Contributed to a Traditional IRA but decided a Roth IRA better fits your tax strategy
  • Made a mistake in IRA selection when initiating your contribution
  • Intended to complete a Backdoor Roth Conversion but contributed to the Roth IRA first in error
Example
  1. You made a $6,000 Roth IRA contribution in 2024 while exceeding 2024 Roth IRA income limits, and later learn you’re still eligible for a traditional IRA
  2. You contributed to a traditional IRA but decided you wanted it to be a Roth IRA contribution
  3. You contributed to a traditional IRA expecting to exceed Roth IRA income limits but later realized you were eligible after filing your tax return
  4. You’re doing a Backdoor Roth conversion and accidentally contributed to your Roth IRA first

Requirements

  • You must have both IRAs (Roth and Traditional) open and unrestricted
  • Recharacterizations at Robinhood are cash-only and require sufficient withdrawable cash
  • You must include Net Income Attributable (NIA) calculation
  • Roth conversions, prior recharacterizations, indirect rollovers, and employer plan rollovers cannot be recharacterized

Deadline

  • Generally April 15 of the following year
  • Automatic 6-month extension to October 15 if you file taxes on time or requested an extension
  • Recharacterizations submitted after the deadline can’t be completed
Example

On March 3, 2024 you contributed $7,000 to your Roth IRA. When you filed your taxes with your tax advisor on April 5, 2025, you realized you weren’t eligible to contribute directly to the Roth IRA and your tax advisory suggested a recharacterization.

Because you filed your taxes before the April 15th deadline for 2024, you are eligible for an automatic 6-month extension to complete the recharacterization.

Can I do a recharacterization at Robinhood if the original contribution was made at another firm?

If you made the original contribution at another firm, you’ll need to contact that firm directly to request a recharacterization. Robinhood can only process a recharacterization if the contribution was either:

  • Made directly to your Robinhood IRA, or
  • Transferred into your Robinhood IRA as part of an account transfer

If the contribution was transferred to Robinhood, we may be able to process the recharacterization. You may need to contact your former firm to gather details about the original contribution and account balances to help calculate the net income attributable (NIA). This information is required when completing your request via Docusign.

How is an IRA Match treated when doing a recharacterization?

There isn’t an Early Match Removal Fee charged for recharacterizations, since the funds remain within an IRA. You generally have the following options when submitting your recharacterization:

  • Include the match in your request, generally as part of a Net Income Attributable calculation
  • Leave the match in the original IRA
  • Request to remove the match by reaching out to support
Keep in mind

We can’t re-grant an IRA match if you choose to have it removed from your IRA.

How is a recharacterization reported to the IRS?

When you recharacterize a contribution, it’s a non-taxable event, but it must still be reported.

IRS Form 1099-R

  • Box 1: Show the full amount recharacterized, including any earnings (Net Income Attributable or NIA)
  • Box 2a: $0
  • Box 2b: Not checked
  • Box 7: Shows a code indicating when the contribution was originally made:
    • Code R: Prior year contribution
    • Code N: Current year contribution

IRS Form 5498

Shows both the original contribution and the recharacterized amount for the appropriate tax years.

Keep in mind

If your recharacterization involves multiple tax years, you’ll receive a separate 1099-R for each year.

When will I receive my recharacterization tax forms?

IRS Form 1099-R is delivered by January 31 of the year following the activity that generated the form. IRS Form 5498 is delivered by May 31 of the year following the activity that generated the form.

Example

You contributed $7,000 to your Roth IRA on January 24, 2025 and designated it for the 2024 tax year. After filing your taxes, you realized you weren’t eligible to contribute directly to a Roth IRA and recharacterized the full contribution +/- any Net Income Attributable to your traditional IRA. You’ll receive the following forms:

  • IRS Form 5498 by May 31st, 2025 showing the original contribution to the Roth IRA for 2024
  • IRS Form 1099-R by January 31st, 2026 showing the recharacterization out of the Roth IRA
  • IRS 5498 by May 31st, 2026 showing the recharacterization into the traditional IRA
How is my recharacterization request treated if it’s from a managed IRA?

Liquidations and withdrawable cash

If your request is from a managed IRA, Robinhood Strategies will liquidate the requested amount within 1-3 business days and we’ll process your recharacterization upon settlement.

Investment minimums and $0 balance

The value of your managed IRA must be at least $50 for Robinhood Strategies to manage your account, or it may be subject to deactivation. For full recharacterizations, we’ll subtract any accrued advisory fees from your requested amount.

Net Income Attributable (NIA) and residuals

If your managed IRA value drops before we process a full recharacterization, we’ll adjust the amount accordingly by reducing the NIA amount provided. If the value of your managed IRA increases or new funds (ex. dividends or interest) post, you’ll need to submit a new request.

Why was my recharacterization request rejected?

Requests can be rejected for a variety of reasons. See common reasons below for further information.

Return of excess contributions

A return of excess removes extra or ineligible IRA contributions to avoid a 6% penalty, assessed annually by the IRS for each year the excess remains.

Example
  1. You contributed to IRAs at 2 different firms and exceeded the annual limit
  2. You contributed to both IRA types and exceeded the annual limit for all IRAs
  3. You completed a direct rollover from an old 401(k) and received notice that you had contributed too much to the 401(k) before the rollover
  4. You completed an ineligible indirect rollover
  5. You contributed to your IRA but the funds were intended for your brokerage

Helpful information

  • Applies to contributions over the annual IRS limit or ineligible rollovers
  • Return of excess are cash-only at Robinhood and require sufficient withdrawable cash
  • Funds are returned to your Robinhood brokerage account
  • Must include Net Income Attributable (NIA) if returned by the IRS deadline
Keep in mind

Returning an excess contribution doesn’t change your annual contribution limit. The full amount you originally contributed will still be reported on your IRS Form 5498 for that tax year, and your contribution total at Robinhood won’t be reduced, reset, or increased.

Deadline

  • April 15 of the following year
  • Automatic 6-month extension to October 15 if you file taxes on time or requested an extension
  • Post-deadline returns are accepted, but NIA cannot be included and a 6% IRS penalty may apply
Example

On March 3, 2025 you contributed $7,000 to your Roth IRA at Robinhood. You later realized you had also already contributed $7,000 at your prior IRA provider before transferring to Robinhood and have now over contributed. Your tax advisor recommended a return of excess of the $7,000 and filed your taxes on April 2nd, 2025.

Because you filed your taxes before the April 15th deadline for 2024, the IRS grants you an automatic 6-month extension to complete the return of excess.

How is an IRA Match treated when I do a return of excess?

We don’t charge an Early Match Removal Fee as part of a return of excess. However, future withdrawals from your IRA could still trigger an early match removal fee if they fall within the match holding period. You generally have the following options when submitting your return of excess:

  • Include the match in your request as part of a NIA calculation
  • Leave the match in the original IRA
  • Request to remove the match by reaching out to support
Keep in mind

We can’t re-grant an IRA match if you choose to have it removed from your IRA.

If positive Net Income Attributable (NIA) included an IRA Match amount, you could pay tax now and may still owe a fee later if you take further distributions from your IRA without meeting the 5 year match holding requirement. If you’re unsure, consider speaking with a tax professional.

Can I still do a return of excess if I already took a distribution for the excess amount?

Return of excess and early or normal IRA distributions are reported differently on IRS Form 1099-R. If you’ve contributed more than the allowed limit, taking a regular distribution won’t correctly resolve the excess.

If you’ve already taken an early or normal distribution instead of submitting a return of excess request, Robinhood unfortunately can’t change our original reporting of it. However, you can work with a tax professional to reconcile the difference when filing your tax return.

Can I still contribute after my return of excess is processed?

Returning an excess contribution doesn’t change your annual contribution limit. The full amount you originally contributed will still be reported on your IRS Form 5498 for that tax year, and your contribution total at Robinhood won’t be reduced, reset, or increased. If you haven’t already maxed out your IRA contributions, including any excess returned, you’ll still be able to contribute up to the maximum for the intended tax year.

Can I do a return of excess if my contribution was made at another firm?

If you made the excess contribution at another firm, you’ll need to contact that firm directly to request a return of excess.

Robinhood can only process a return of excess if the contribution was either:

  • Made directly to your Robinhood IRA, or
  • Transferred into your Robinhood IRA as part of an account transfer.

We may be able to process the return of excess if the contribution was transferred to Robinhood. You’ll need to contact your former firm to gather details about the original contribution and account balances to help calculate the NIA. This information is required when completing the return of excess request via Docusign.

Can I do a return of excess if I was notified there was an over-contribution to a workplace plan that I rolled over to my IRA at Robinhood?

Yes. If you need to remove an invalid rollover amount due to an excess contribution to a workplace plan, Robinhood can process a return of excess.

We may ask for additional documentation, such as a letter or statement from the plan administrator, confirming the excess contribution and rollover details.

How is my return of excess request treated if it’s from a managed IRA?

Liquidations and withdrawable cash

If your request is from a managed IRA, Robinhood Strategies will liquidate the requested amount within 1-3 business days and we’ll process your transaction upon settlement.

Investment minimums and $0 balance

The value of your managed IRA must be at least $50 for Robinhood Strategies to manage your account, or it may be subject to deactivation. For full withdrawals, we’ll subtract any accrued advisory fees from your requested amount.

Net Income Attributable (NIA) and residuals

If your managed IRA value drops before we process a full removal, we’ll adjust the amount accordingly by reducing the NIA amount provided. If the value of your IRA increases or new funds (ex. dividends or interest) post, you’ll need to submit a new request.

How is a return of excess reported to the IRS?

When you return an excess contribution, it's potentially a taxable event if it includes Net Income Attributable (NIA). Robinhood is required to report details of the return of excess on IRS Form 1099-R. IRS Form 5498 isn't issued for returned excess contributions because the funds are removed from the IRA rather than being contributed or rolled into another IRA.

IRS Form 1099-R

  • Box 1: Total amount distributed (excess + NIA)
  • Box 2a: Shows the NIA amount only
  • Box 2b: Not checked. NIA may be taxable
  • Box 4: Federal income tax withheld (if applicable)
  • Box 14: State tax withheld (if applicable)
  • Box 7: Codes vary based on account type, age, and contribution year:

Excess Contribution Codes (Box 7):

  • Code 8: Current year excess
  • Code P: Prior year excess (returned before tax filing deadline)

In certain scenarios 2 codes will appear in Box 7:

Account typeUnder age 59 1/2Age 59 1/2 or over (for removal afterdeadline)
Traditional IRACode 1Code 7
Roth IRACode JCode T
Keep in mind

Excess contributions returned after the applicable IRS deadline won’t include Net Income Attributable (NIA), federal or state tax withholding, or a timing code (such as Code 8 or P) on your Form 1099-R. Consult your tax advisor for help reconciling.

When will I receive my return of excess tax forms?

Form 1099-R is delivered by January 31st of the year following the activity that generated the form.

Keep in mind

If your return of excess involves multiple tax years, you’ll receive a separate 1099-R for each year.

Why was my return of excess rejected?

Requests can be rejected for a variety of reasons. Review common rejection reasons below and how to fix them.

Example

You contributed $7,000 to your Roth IRA on January 24, 2025 and designated it for the 2024 tax year. You later contributed another $7,000 to an IRA at a separate brokerage. After filing your taxes, you realized you contributed $7,000 in excess to all IRA and requested a return of excess for the full $7,000 +/- Net Income Attributable. You’ll receive the following forms:

  • IRS Form 5498 by May 31st, 2025 showing the original contribution to the Roth IRA
  • IRS Form 1099-R by January 31st, 2026 showing the excess return out of the Roth IRA
Keep in mind

If your return of excess involves multiple tax years, you’ll receive a separate 1099-R for each year.

Example

You contributed $7,000 to your Roth IRA on January 24, 2025 and designated it for the 2024 tax year. You later contributed another $7,000 to an IRA at a separate brokerage. After filing your taxes, you realized you contributed $7,000 in excess to all IRA and requested a return of excess for the full $7,000 +/- Net Income Attributable. You’ll receive the following forms:

  • IRS Form 5498 by May 31st, 2025 showing the original contribution to the Roth IRA
  • IRS Form 1099-R by January 31st, 2026 showing the excess return out of the Roth IRA

Understanding net income attributable (NIA)

When you recharacterize or return an excess IRA contribution, the IRS requires you to adjust for any investment gains or losses that happened while that contribution was in your account. This adjustment is called Net Income Attributable (NIA), which is the earnings or losses connected to the contribution you're adjusting or removing.

Why does NIA matter?

IRA contributions and their associated growth (or loss) can generally be considered as a package. If you remove the contribution or adjust it to another type of IRA, you also need to remove or adjust the related growth (or loss).

What is the formula to calculate NIA?

Before you begin

Review Worksheet 1-4 in IRS Publication 590-A for IRS method of computing NIA.

Robinhood doesn’t calculate Net Income Attributable (NIA) or provide adjusted balances. However, we can share your account balance as of a specific date if needed.

For help with this or other balance inquiries, please reach out to our support team.

Here’s a slightly revised formula used to calculate NIA:

NIA = (Contribution amount x (Adjust Closing Balance - Adjusted Opening Balance)) / Adjusted Opening Balance

Key terms

Contribution amount: The exact amount you’re recharacterizing or removing from your IRA.

Adjusted Opening Balance (AOB): Your IRA balance just before the contribution was made, plus the contribution being returned or recharacterized and plus any additional contributions made during the computation period (this includes rollovers, transfers, and recharacterizations).

Adjusted Closing Balance (ACB): Your IRA balance just before the contribution is removed or recharacterized, plus any distributions made during the computation period (including rollovers, transfers, and recharacterizations).

Computation period: The time between just before the contribution was made and when the return of excess or recharacterization is submitted.

Example

Positive NIA (gains)

John contributed $6,000 to his Roth IRA in March 2024. Over time, his investments went up in value. When he decides to recharacterize the contribution:

  1. His IRA balance before the contribution: $20,000
  2. His balance now: $28,250
  3. AOB = $26,000 (original + contributions)
  4. ACB = $28,250 (no distributions occurred)

NIA = $6,000 ($28,250 - $26,000) / $26,000 = $519.23

John must move $6,519.23 from his Roth IRA to his Traditional IRA to complete the recharacterization.

Example

Negative NIA (losses)

Emma contributed $6,000 to her Roth IRA but was ineligible. Her investments lost value. When she decided to complete the return of excess:

  1. IRA balance before contribution: $20,000
  2. Current value: $23,750
  3. AOB = $26,000 (original + contribution)
  4. ACB = $23,750

NIA = $6,000 ($23,750 - $26,000) / $26,000 = -$519.23

Emma must move $5,480.77 to complete the removal of excess.

Takeaway

We understand this can be a confusing calculation. We recommend checking out IRS Publication 590-A or speaking to a qualified tax professional for additional clarification. Keep in mind, Robinhood doesn’t provide tax advice.

Is NIA taxable?

Recharacterization

Neither the contribution nor the NIA is reported as taxable income on the 1099-R for a recharacterization.

Return of excess

There isn’t a tax on the contribution removed, but any positive NIA amount is reported as taxable income on the 1099-R and may be taxable.

Can I withhold taxes for a positive NIA on a return of excess?

You have the option to request tax withholding from any positive earnings (Net Income Attributable) included in your return of excess contribution.This means a portion of the NIA provided can be withheld and sent to the IRS, and your state if applicable, helping reduce what you may owe when you file your taxes. Withholding isn’t required, and if you don’t elect, the full NIA amount will be distributed to your brokerage and reported as taxable income on your Form 1099-R.

Tip

To request withholding, be sure to indicate your election on the Docusign form Tax Withholding Election section.

Reclassifying a contribution's tax year

A reclassification adjusts which tax year a contribution applies to, or can be used to classify a contribution as a rollover (or vice versa). It’s a flexible way to correct contribution intent, but some elections are irrevocable.

Example
  1. You contributed $6,500 in March 2025 but meant it for 2024
  2. You made a contribution for 2025 but it was an indirect rollover from another IRA
  3. You accidentally marked a prior year contribution as current year when initiating
  4. You were impacted by IRS Disaster Relief and made a current year contribution that was intended for the prior year, after the contribution deadline

Helpful information

  • You can only reclassify contributions made between January 1 and the tax filing deadline (usually April 15)
  • Contributions can’t be moved to a future tax year and can’t be split at Robinhood (you’ll need to reclassify the full amount)
  • Contributions made at other brokerages can’t be reclassified at Robinhood
  • If you were affected by an IRS declared disaster, you may be able to reclassify a contribution made after the tax deadline
Tip

If you also plan to recharacterize or return the contribution, submit the reclassification first and then follow up with the next adjustment.

Reclassification deadline

  • Reclassifications must apply to contributions made between January 1 and April 15 (unless impacted by IRS approved Disaster Relief)
  • You may request a reclassification after April 15, as long as the original contribution was made on time
Example

You contributed $6,000 to your Roth IRA on February 22, 2025 and designated it for the current year inadvertently. Your tax advisor filed your taxes with this contribution designated for 2024 and later noticed the discrepancy when filing your taxes in 2026.

Because the contribution was made between January 1 and April 15th, you’re able to reclassify it between the current or prior tax year, even though it’s past the tax filing deadline.

What if I submitted my transfer as an indirect rollover instead of a contribution?

A reclassification can help if you made a mistake when selecting the type of contribution and chose rollover instead of current or prior year.

What if I submitted my transfer as a contribution instead of an indirect rollover?

A reclassification can help if you made a mistake when selecting the type of contribution and chose current or prior year instead of a rollover.

Keep in mind

Any election to reclassify a contribution as a rollover is irrevocable.

What if I was impacted by tax relief in disaster situations and want to make a prior year contribution?
Before you begin

Reclassification requests under disaster relief must follow IRS eligibility rules. Robinhood doesn’t determine eligibility but will honor IRS guidance and review attestations accordingly.

If you're in an area affected by an IRS-approved disaster, you may be eligible to make a prior year IRA contribution beyond the usual tax deadline.

Robinhood supports this scenario with the following process:

  1. Confirm you’re eligible using IRS tax relief in disaster situations or speaking with a tax advisor
  2. Make a contribution as a rollover in the app
  3. See How to submit a contribution adjustment for help requesting the reclassification
  4. Attest to your state and county on the DocuSign form after you’ve confirmed you’re eligible
How does a reclassification between tax years impact tax reporting?

The timing of your original deposit doesn’t determine when it’s reported but rather your final election after your reclassification. Reclassifying a contribution changes which tax year the contribution applied to, and this is reflected on IRS Form 5498.

Example

You reclassify an eligible 2024 contribution to 2023. The contribution will now reflect on IRS Form 5498 issued for 2023, rather than 2024.

You reclassify an eligible 2024 contribution to 2025. The contribution won’t reflect on IRS Form 5498 issued for 2025, rather than 2024.

How does a reclassification between a contribution and a rollover impact tax reporting?

Changing from a rollover to contribution or vice-versa will change which IRS Form 5498 box the transfer applies to. Contributions are reported in Box 1 and rollovers are reported in Box 2.

Will I receive a corrected tax form after a reclassification?

If the reclassification happens after IRS Form 5498 is issued, we’ll send a corrected version, usually within 2-4 weeks.

Example

You contributed $3,000 to your traditional IRA on January 3rd, 2025 and designated it for 2024 instead of 2025. You already had $4,000 in contribution in 2024.

After receiving your IRS Form 5498 by May 31st, 2025, you realized the mistake and reclassified the contribution to 2024. You’ll receive a corrected IRS Form 5498 generally within 2-4 weeks with the adjusted total of $7,000 in contributions for 2024 instead of $4,000.

Why was my reclassification rejected?

Requests can be rejected for a variety of reasons. Review common rejection reasons below and how to fix them below.

Common reasons we can’t process your request

We make every effort to process your request smoothly, but we’re required to follow certain rules and regulations.

If your request is rejected, we’ll typically send you an email explaining the reason, along with clear next steps. This often includes a new DocuSign form to help you correct and resubmit your request.

Keep in mind

If your request is rejected for multiple reasons or was previously denied, you’ll receive a general rejection email without a new Docusign form. To understand all the reasons and avoid repeated delays, contact support and they can guide you through next steps to complete your request.

Insufficient withdrawable cash

Check your withdrawable cash:

  1. Select Account (person icon) → Menu (3 bars)
  2. Go to TransfersWithdrawable Cash

Close positions or wait for pending funds to settle

Make sure you're viewing the correct Robinhood IRA for your request. This applies to recharacterization and return of excess.

Missing or incorrect account number

Double-check your IRA account number

To find your account number:

  1. Select Account (person icon) → Menu (3 bars)
  2. Go to Account numbersShow numbers

This applies to recharacterization, return of excess, and reclassification.

Invalid contribution amount or net income attributable (NIA) sum

The contribution amount you're removing or recharacterizing, plus or minus your Net Income Attributable (NIA) calculation, must exactly match the total amount requested. This ensures accurate processing and proper reporting.

Make sure to double check the amounts provided and resubmit your request. This applies to recharacterization and return of excess.

Used one form for multiple years

Contribution and adjustment reporting is based on the specific tax year impacted.

Submitting a separate form for each tax year helps ensure accurate processing, proper reporting, and easier reconciliation when you file your tax return. This applies to recharacterization, return of excess, and reclassification.

Request submitted after IRS deadline

Prior year recharacterizations and timely returns of excess with NIA cannot be processed after the IRS cutoff.

  • Confirm you selected the correct tax year(s)
  • Remove an NIA calculation provided for a post-deadline return of excess
  • Consult a tax advisor for other potential options
  • This applies to recharacterization and return of excess (with NIA)

Request submitted before IRS deadline but marked “No” on the DocuSign form

The IRS requires all timely recharacterization or return of excess requests to include a net income attributable (NIA) calculation.

Even if you selected No on the form regarding whether you've filed your tax return, your request is still considered timely if you've already filed or requested an extension, and it must include NIA.

  • Confirm you filed your taxes timely or requested an extension and resubmit the Docusign form indicating Yes so that you can provide a valid NIA calculation
  • Contact support if it’s truly an untimely request before the extended deadline
  • This applies to recharacterization and return of excess (with NIA)

Splitting a contribution

Each reclassification must be all-or-nothing at Robinhood. You can't split a contribution between years or accounts.

  • Review your request and confirm the contribution(s) intended
  • See return of excess if the reclassification request was due to an excess contribution
  • Consult a tax advisor for other potential options
  • This applies to reclassification

Forward adjustments

Contributions can only be applied to the current or prior tax year and can’t be adjusted to a future (forward) tax year.

  • Double-check the tax year and instructions provided on your form
  • Consult a tax advisor for other potential options
  • This applies to reclassification

Contributions made after the deadline

Contributions made after the tax filing deadline generally cannot be reclassified to the prior tax year, unless you're eligible for IRS tax relief in disaster situations

  • Double-check the tax year and instructions provided on your form to ensure accuracy
  • If you're claiming IRS disaster relief, make sure to attest to your state and county on the DocuSign form
  • This applies to reclassification
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Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker dealer (member SIPC), and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). While there is no additional cost to use Robinhood Legend, there are other fees associated with your brokerage account. Review the fee schedule for details.

Portfolio Management offered through Robinhood Asset Management, LLC (“Robinhood Strategies” or “RAM”), an SEC-registered investment advisor. For additional information about Robinhood Strategies, including about services, fees, risks, and conflicts of interest, review our firm’s brochure.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker dealer (member SIPC), and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). While there is no additional cost to use Robinhood Legend, there are other fees associated with your brokerage account. Review the fee schedule for details.

Portfolio Management offered through Robinhood Asset Management, LLC (“Robinhood Strategies” or “RAM”), an SEC-registered investment advisor. For additional information about Robinhood Strategies, including about services, fees, risks, and conflicts of interest, review our firm’s brochure.

Futures and cleared swaps trading is offered by Robinhood Derivatives, LLC, (“RHD”) a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and a Member of the National Futures Association (NFA). RHD is not FDIC insured or SIPC protected.

Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Review a list of RHC's licenses for more information. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.

The Robinhood spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Review a list of our licenses for more information.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc., and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. (“RCT”), is a financial technology company, not a bank.

Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC (“RHG”).

RHF, RHS, RAM, RHD, RHC, RHY, RCT, and RHG are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHS, RAM, RHD, RHC, RHY, RCT, and RHG are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Funds held in your Robinhood Cash Card account at Sutton Bank are eligible for FDIC insurance up to $250,000 and will not accrue or pay any interest. The availability of FDIC insurance is contingent upon Robinhood maintaining records acceptable to the FDIC, as receiver, if Sutton Bank should fail. FDIC insurance limits apply collectively to all of your deposits held at Sutton Bank.

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

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