{"id":39148,"date":"2023-02-23T06:58:11","date_gmt":"2023-02-23T14:58:11","guid":{"rendered":""},"modified":"2024-09-09T08:23:09","modified_gmt":"2024-09-09T15:23:09","slug":"robinhood-ira","status":"publish","type":"post","link":"https:\/\/financer.com\/investing\/articles\/robinhood-ira\/","title":{"rendered":"The Robinhood IRA: Everything You Need To Know"},"content":{"rendered":"\n<p><a href=\"https:\/\/financer.com\/company\/robinhood\/\" data-type=\"company_single\" data-id=\"23286\" target=\"_blank\" rel=\"noreferrer noopener\">Robinhood<\/a> is a popular investment platform known for its user-friendly interface and commission-free trades. <\/p>\n\n\n\n<p>With their newly launched IRAs, <strong>you get a 1% match <\/strong>on everything you invest with Robinhood from an outside account.  <\/p>\n\n\n<div class=\"fn_block block_fn_msg_box key-takeaways\"><div class=\"fn_block__icon\"><\/div>Robinhood has recently announced the launch of its new Individual Retirement Accounts (IRAs) that come with a unique feature &#8211; matching contributions.<\/div>\n\n\n<p>In this post, we&#8217;ll take a closer look at the Robinhood IRA, its benefits, how it works, and its advantages.<\/p>\n\n\n\n<p><strong>Here&#8217;s what we&#8217;ll cover in this post:<\/strong><\/p>\n\n\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/invest\/ira\/\" class=\"button  is-rounded is-primary is-large is-arrow\" target=\"_blank\"  >Compare IRAs <\/a><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"How_Does_Robinhoods_IRA_Work\">How Does Robinhood&#8217;s IRA Work?<\/h2>\n\n\n\n<p>Robinhood has two IRAs: <strong>a traditional IRA<\/strong> and a <strong>Robinhood Roth IRA<\/strong>.<\/p>\n\n\n\n<p>Similar to traditional IRAs, Robinhood&#8217;s IRAs have all the same features with one unique benefit &#8211; a matching contribution. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Heres_how_Robinhoods_IRAs_work\">Here&#8217;s how Robinhood&#8217;s IRAs work:<\/h3>\n\n\n<div class=\"single-article__steps\">        <style>\n            .single-article__steps-items .single-article__steps-content {\n                background: #FFFFFF;\n                padding: 30px;\n                margin: 0 0 30px 0;\n                border-radius: 10px;\n                box-shadow: 0 0 10px 0 rgba(0, 0, 0, 0.14);\n                width: calc(100% - 5px);\n            }\n            .single-article__steps-items .single-article__steps-counter {\n                padding: 5px 20px;\n                border-radius: 3px;\n                background-color: #F5E7D8;\n                display: inline-block;\n                top: 15px;\n                left: -30px;\n                position: relative;\n                font-size: 16px;\n                font-weight: 600;\n            }\n\/*            .single-article__steps-items::before {\n                content: \"\";\n                position: absolute;\n                top: 20px;\n                left: 0;\n                height: calc(100% + 40px);\n                border-left: 2px dashed #e0e0e1;\n            }*\/\n            .single-article__conclusion-tag {\n                padding: 5px 20px;\n                border-radius: 3px;\n                color: #000000;\n                background-color: #F5E7D8;\n                display: inline-block;\n                top: 15px;\n                left: -30px;\n                position: relative;\n                font-size: 16px;\n                font-weight: 600;\n            }\n            .single-article__conclusion-item {\n                background: #FFFFFF;\n                padding: 30px;\n                margin: 0 0 30px 0;\n                border-radius: 10px;\n                box-shadow: 0 0 10px 0 rgba(0, 0, 0, 0.14);\n            }\n        <\/style>\n        <div class=\"single-article__steps-items\"><div class=\"single-article__steps-counter\" id=\"step_1\">Step 1<\/div><div class=\"single-article__steps-content\"><h3 id=\"Open-an-IRA\">Open an IRA<\/h3>To get started with Robinhood\u2019s IRA, you will need to open an account. This can be done easily and quickly through the Robinhood app. Simply sign up for an account and choose the option to open an IRA.<\/div><div class=\"single-article__steps-counter\" id=\"step_2\">Step 2<\/div><div class=\"single-article__steps-content\"><h3 id=\"Make-contributions\">Make contributions<\/h3>You can make contributions to your Robinhood IRA at any time, up to the annual contribution limit set by the government.<\/div><div class=\"single-article__steps-counter\" id=\"step_3\">Step 3<\/div><div class=\"single-article__steps-content\"><h3 id=\"Matching-your-contributions\">Matching your contributions<\/h3>Up to a specific amount, Robinhood will match a part of your contributions. This distinctive quality distinguishes Robinhood from other investment platforms.<\/div><div class=\"single-article__steps-counter\" id=\"step_4\">Step 4<\/div><div class=\"single-article__steps-content\"><h3 id=\"Invest-your-funds\">Invest your funds<\/h3>You can invest your money the same way you would with any other Robinhood account after making contributions and utilizing the matching option. As a result, you have a vast selection of stocks, ETFs, and cryptocurrencies from which to build your portfolio.<\/div><\/div>            <div class=\"single-article__conclusion\">\n                            <\/div>\n            <\/div>\n\n\n<p>It&#8217;s important to note that Robinhood charges the same reasonable costs for its IRA account as it does for its standard brokerage accounts.<\/p>\n\n\n\n<p>This entails that you can begin saving for retirement and utilize the function of matching contributions without incurring significant costs.<\/p>\n\n\n\n<p>\ud83d\udc49 <strong><a rel=\"sponsored noopener nofollow\" href=\"https:\/\/financer.com\/company\/robinhood\/redirect\/\" target=\"_blank\">Get Early Access to Robinhood&#8217;s IRA<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Robinhood_Roth_IRA\">Robinhood Roth IRA<\/h2>\n\n\n\n<p>If you&#8217;re looking for a Roth IRA, Robinhood allows you to contribute your after-tax dollars to help save up for your retirement years. <\/p>\n\n\n\n<p>With a Roth IRA from Robinhood, you can <strong>contribute up to $6,500<\/strong> if your income is under $144,000 for the year (or $214,000 if you file jointly). If you are over the age of 50 you can contribute up to $7,500.<\/p>\n\n\n<div class=\"fn_block block_fn_msg_box boxed\"><div class=\"fn_block__icon\"><\/div>With Robinhood you can get a 1% match to your contributions <strong>without needing an employer<\/strong>.<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"Recommended_Portfolios\">Recommended Portfolios<\/h2>\n\n\n\n<p>As a Robinhood client, you&#8217;ll have <strong>access to a robo-advisor <\/strong>that can help by recommending <strong>ETFs or portfolios<\/strong> to you. <\/p>\n\n\n\n<p>You can invest in the recommended portfolios or choose your own ETFs and stocks, or even both.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"i5_Advantages_of_Using_Robinhoods_IRAs\">5 Advantages of Using Robinhood&#8217;s IRAs<\/h2>\n\n\n\n<p>Robinhood&#8217;s IRAs come with several advantages that make them an excellent option for anyone looking to start saving for retirement. <\/p>\n\n\n\n<p>Here are some of the key benefits:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"i1_Matching_Contributions\">1. Matching Contributions<\/h3>\n\n\n\n<p>The special feature of matching contributions offered by Robinhood&#8217;s IRAs is a wonderful incentive to get started on retirement savings.<\/p>\n\n\n\n<p>For anyone wishing to start saving for retirement, this feature sets Robinhood apart from other investment platforms and makes it a smart choice.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"i2_Low_Fees\">2. Low Fees<\/h3>\n\n\n\n<p><strong>Robinhood is known for its low fees, and this is also true for its IRAs<\/strong>. This means you can start saving for retirement and take advantage of the matching contributions feature without paying high fees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"i3_Account_Protection\">3. Account Protection<\/h3>\n\n\n\n<p><strong>Robinhood is a member of <a rel=\"noreferrer noopener\" href=\"https:\/\/www.sipc.org\" target=\"_blank\">SIPC<\/a><\/strong>, which provides up to $500,000 in protection for consumers of its members who purchase securities (including $250,000 for cash claims).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"i4_Convenience_and_Accessibility\">4. Convenience and Accessibility<\/h3>\n\n\n\n<p><strong>Robinhood&#8217;s IRAs can be easily opened<\/strong> and managed through the Robinhood app, which makes it convenient and accessible for everyone. <\/p>\n\n\n\n<p>This means that you can start saving for retirement from the comfort of your own home, without the need for a traditional brokerage account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"i5_Investment_Options\">5. Investment Options<\/h3>\n\n\n\n<p><strong>Robinhood&#8217;s IRAs allow you to invest in a wide range <\/strong>of stocks, ETFs, and cryptocurrencies, just like its traditional brokerage accounts. <\/p>\n\n\n\n<p>This means that you can build a diverse portfolio and take advantage of the matching contributions feature while still having control over your investment choices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"How_Do_Robinhoods_Matching_Funds_Work\">How Do Robinhood&#8217;s Matching Funds Work?<\/h2>\n\n\n<div class=\"wp-block-image shortcode-no\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/financer.com\/app\/uploads\/sites\/11\/2023\/05\/image-27-473x1024.png\" alt=\"\" class=\"wp-image-44150\" width=\"300\" height=\"649\" srcset=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/05\/image-27-473x1024.png 473w, https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/05\/image-27-139x300.png 139w, https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/05\/image-27-768x1663.png 768w, https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/05\/image-27-709x1536.png 709w, https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/05\/image-27-946x2048.png 946w, https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/05\/image-27.png 1200w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/figure><\/div>\n\n\n<p>As mentioned, on every dollar invested, Robinhood <strong>matches it with 1%<\/strong>. This means that the extra 1% match in contributions could grow to $25k in 45 years*. <\/p>\n\n\n\n<p>Here&#8217;s an example scenario based on the above:<\/p>\n\n\n\n<ul>\n<li>You make a contribution of $6,500 to your IRA every year. This comes to a monthly contribution of $541 or a $5.41 match. <\/li>\n\n\n\n<li>You earn a 1% match every year which will total $5.41 per month.<\/li>\n\n\n\n<li>You invest your full IRA match amount every year and earn 8% interest over the next 45 years. <\/li>\n\n\n\n<li>This assumes that the contribution limit is $6,500 per year.<\/li>\n<\/ul>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/invest\/ira\/\" class=\"button  is-rounded is-primary is-large is-arrow\" target=\"_blank\"  >Compare IRAs <\/a><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"Who_Can_Invest_In_a_Robinhood_IRA\">Who Can Invest In a Robinhood IRA?<\/h2>\n\n\n\n<p>To invest you must have a Robinhood account and earn an income.<\/p>\n\n\n\n<p>This is because the IRA only allows people who earn an income to invest in an IRA. Note that this refers to income from work, not from passive investment income.<\/p>\n\n\n\n<p>You also need to:<\/p>\n\n\n\n<ul>\n<li>Be at least 18 years old<\/li>\n\n\n\n<li>Be a US citizen or lawful resident <\/li>\n\n\n\n<li>Have a valid SSN<\/li>\n\n\n\n<li>Have a US address<\/li>\n<\/ul>\n\n\n\n<p>Anyone who earns an income can open a traditional IRA account but keep in mind that over time the tax deductions are reduced for higher incomes. <\/p>\n\n\n\n<p>People who fall within high income brackets <em>may not qualify to open a Roth IRA<\/em>.<\/p>\n\n\n<div class=\"fn_block block_fn_faq_list\"><h3 id=\"Robinhood_IRA___FAQs\">Robinhood IRA &#8211; FAQs<\/h3><h4>Does Robinhood have Roth IRA?<\/h4><div class=\"faq_inner\">Yes, the Robinhood Roth IRA allows you to save your after-tax income towards your retirement. You can save up to $7,500 if you are over 50.<\/div><h4>Is Robinhood safe for IRA?<\/h4><div class=\"faq_inner\">Yes, Robinhood is reliable and safe to open an IRA with.<\/div><h4>What is the income limit for Robinhood IRA?<\/h4><div class=\"faq_inner\">You may contribute if your income is less than $144,000 for single filers ($214,000 for joint filers) and the annual contribution limit is $6,500. For investors over the age of 50 the annual contribution limit is $7,500.<\/div><\/div>\n\n\n<p class=\"has-small-font-size\"><em>* The IRA Match is automatically added after eligible contributions from an external bank account. Keep the contributions in your IRA for at least 5 years from the date you contribute. IRA Match FAQ. Other fees may apply. See our Fee Schedule for more details.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Robinhood is a popular investment platform known for its user-friendly interface and commission-free trades. With their newly launched IRAs, you\u2026 <\/p>\n","protected":false},"author":11463,"featured_media":39149,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"disable_branded_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ep_exclude_from_search":false,"footnotes":""},"categories":[89],"tags":[],"_links":{"self":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/posts\/39148"}],"collection":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/users\/11463"}],"replies":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/comments?post=39148"}],"version-history":[{"count":29,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/posts\/39148\/revisions"}],"predecessor-version":[{"id":51691,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/posts\/39148\/revisions\/51691"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media\/39149"}],"wp:attachment":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media?parent=39148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/categories?post=39148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/tags?post=39148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}