IRA overview
Individual retirement accounts (IRA) allow you to invest for retirement. Any earnings have tax-deferred or tax-free growth potential, so you will keep more of your money.
Robinhood offers 2 different types of retirement accounts: traditional IRA and Roth IRA. You can open 1 of each type of IRA at Robinhood, even if you already have an IRA at another financial institution or a workplace retirement plan, like a 401(k).
A traditional IRA allows you to invest for retirement with pre-tax dollars and tax advantages. This means you may be able to deduct qualified contributions now and pay taxes later upon withdrawal or distribution. Your contributions may be fully or partially deductible, depending on your filing status, income, and if you (or your spouse) are covered by a workplace retirement plan.
For the 2024 tax year, anyone with earned income is eligible for an annual contribution limit of $7,000 if you’re under age 50 (or $8,000 if you’re age 50 or older).
A Roth IRA allows you to contribute after-tax dollars to invest for retirement. This means you pay taxes on contributions now with potential tax-free withdrawals later. Any earnings are tax and penalty free if they meet certain requirements.
For the 2024 tax year, you’re eligible to contribute if your income is under $161,000 if filing single, and under $240,000 if filing jointly—with an annual contribution limit of $7,000 (or $8,000 if you’re over age 50).
For more details, check out IRS Contributions to IRAs.
To begin, select Retirement → Get started and then follow the prompts to set up your account within the Robinhood app or on web classic. You can open a traditional IRA, a Roth IRA, or both. If you skip opting in on features, you can always opt in later.
Next, you can choose to either get a new, one-time recommended portfolio or pick your own investments for your IRA.
A portfolio is a group of investments, and each recommended portfolio includes 5-8 exchange-traded funds (ETFs) that we choose for you with an algorithm-based investment process we built. Our process uses your answers to our questions to match you to a portfolio that aims to work with your retirement timeline. Read about the details in Retirement recommendations.
You can also create your own portfolio by exploring investments, such as stocks and ETFs, and options (subject to eligibility requirements).
IRA limited margin accounts let you trade with unsettled funds from stock and option sales. With IRA cash accounts, you’ll need to wait 1 day to trade with funds from stock sales and 1 day to trade with funds from option sales.
If you trade with unsettled funds, it could trigger pattern day trading rules. Day trading activities should be avoided inside retirement accounts given the risk of losing all funds involved.
You can’t borrow against the value of your IRA holdings or create a debit balance like with true margin investing in your individual investing account. Also, the IRS’s annual contribution limits for IRAs may prevent the deposit of additional funds to meet day trade requirements.
If you’d like to switch to a limited margin account, you’ll need to do it in the app.
When you set up your IRA, you can link both your Robinhood and external bank accounts in your Retirement dashboard:
To transfer money from an existing IRA at another firm, or rollover money from an employer-sponsored 401(k), check out Rollover and transfer options.
The IRA match is an extra 3% match with Robinhood Gold, or 1% without, that Robinhood adds to your IRA for making eligible contributions. All IRA transfers and 401(k) rollovers earn 1% with or without Robinhood Gold. That means you’ll automatically get an extra 1% or 3% on every dollar you contribute every year, up to the annual IRA contribution limits set by the IRS. It’s not counted toward your annual contribution limits, and is typically available to invest immediately.
For details, check out the IRA match FAQ, including important limitations.
Remember, the match must be held in the Robinhood IRA for at least 5 years to avoid the possibility of a withdrawal fee.
SIPC protects securities customers of its members up to $500,000 (including $250,000 for claims for cash) per account. An explanatory brochure is available upon request or at www.sipc.org.
SIPC coverage does not protect against a loss in the market value of securities.
Investors should consider the investment objectives and unique risk profile of any Exchange Traded Product (ETP), including any Exchange-Traded Fund (ETF) and any Exchange-Traded Notes (ETNs), carefully before investing. A prospectus contains this and other information about the ETP and should be read carefully before investing. You can access an ETF’s detail page for a prospectus.
Recommendations are one-time only. Any additional investment is at your sole discretion. Retirement recommendations aren’t available in Massachusetts at this time. More details are available in Retirement recommendations.
You must keep the funds that earned the match in the account for at least 5 years to avoid the possibility of a fee when withdrawn. For more information, review the IRA match FAQ.
Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax.
Contents provided are for informational purposes only and don’t constitute tax or investment advice. For specific questions, you should consult a tax professional. Robinhood does not provide tax advice. Links to third party sites are being provided for informational purposes only.
All investments involve risk and loss of principal is possible. Investors should consider their investment objectives and risks carefully before investing.
Investors should consider the investment objectives and unique risk profile of any Exchange Traded Product (ETP), including any Exchange-Traded Fund (ETF) and any Exchange-Traded Notes (ETNs), carefully before investing. A prospectus contains this and other information about the ETP and should be read carefully before investing. You can access an ETF’s details page for a prospectus.
The Robinhood IRA is available to any of our US customers with a Robinhood brokerage account in good standing. Note, if you have a B-Notice, you won’t be able to open an IRA until your account restrictions are lifted.
Securities trading is offered through Robinhood Financial LLC, a registered broker-dealer and Member SIPC, and a subsidiary of Robinhood Markets, Inc. (Robinhood).