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: a traditional IRA and a Roth IRA. You can open 2 of each type of IRA at Robinhood, a managed and a self-directed IRA of each type, 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.
As an IRA owner with earned income for the 2025 tax year, you’re eligible for an annual contribution limit of $7,000 if you’re under age 50 (or $8,000 if you’re age 50 or over). Keep in mind, you can contribute to your IRA for the previous tax year until the IRS tax filing deadline.
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 2025 tax year, you’re eligible to contribute if your income is under $165,000 if filing single, and under $246,000 if filing jointly—with an annual contribution limit of $7,000 (or $8,000 if you’re over age 50).
Keep in mind, you can contribute to your IRA for the previous tax year until the IRS tax filing deadline. 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 choose between a traditional IRA or a Roth IRA.
Next, you can choose to either pick your own investments in your IRA and open a self-directed account or let the Robinhood Strategies team do it for you by choosing to open a managed account.
You can open up to 4 IRAs: a self-directed traditional IRA, a self-directed Roth IRA, a managed traditional IRA and a managed Roth IRA.
If you skip opting in on features, such as Stock Lending or recurring contributions, you can always opt in to those later.
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. You can’t switch account types for an account managed by Robinhood Strategies.
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.
Note that money movement in managed IRAs have different timelines. For details, review Managed account money movement.
Keep in mind that you currently can’t make direct contributions to an IRA from a managed taxable account. For now, you’ll need to withdraw it as cash from your managed taxable account, and transfer it to a self-directed taxable account. You can then use that cash to make a contribution to an IRA.
The IRA match is an extra 3% match with Robinhood Gold (subscription fee applies), or 1% without, that Robinhood adds to your IRA for making eligible contributions. 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.
Accounts managed by Robinhood Strategies are not eligible for the IRA match on contributions.
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. You must be subscribed to Gold for 1 year after your first Gold match to keep the full Gold match.
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. It provides coverage in the case of broker-dealer failure.
The 3% matching on contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year after the first Gold match to keep the full Gold match. The funds that earned any match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. The match rate is subject to change. Non-Gold customers receive a 1% match, no subscription required. Offers only apply to self-directed IRAs. For more information, review IRA Match FAQ.
You must have compensation (wage income) in order to contribute to an IRA. 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.
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.
Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC.
Robinhood Asset Management, LLC (“RAM” or “Robinhood Strategies”) is an SEC-registered investment advisor. Robinhood Financial LLC (member SIPC) is a registered broker dealer. Robinhood Securities LLC (member SIPC) provides clearing services.