An Individual Retirement Account (IRA) is a type of retirement plan that allows individuals to save and invest for their future. It is managed by the individual, unlike a 401(k) which is typically provided by an employer. Having both a 401(k) and an IRA can be beneficial as it allows individuals to maximize their retirement savings.
One option for an IRA is provided by Robinhood, a popular commission-free brokerage platform that offers a retirement solution called Robinhood Retirement. Robinhood Gold is the platform's subscription service, with which customers can earn up to 3% extra on their retirement contributions. This means that on top of the maximum annual contribution limit of $6,500, customers can receive up to $195 extra for their retirement. To maintain the 3% match, customers need to be a Robinhood Gold member for at least one year and keep their money in a Robinhood IRA for at least five years.
Even without Robinhood Gold, customers can still benefit from an extra 1% on all their contributions, transfers and rollovers made to a Robinhood IRA. This applies regardless of the amount being transferred. Robinhood offers both Roth and Traditional IRAs, each with its own tax benefits. Contributions to a Traditional IRA are tax-deductible, helping to save on taxes today, while distributions are taxed in the future. On the other hand, contributions to a Roth IRA are not tax-deductible, but qualified withdrawals are tax-free. Having both options at the user's disposal makes for a customizable experience.
Robinhood also provides additional features to make investing for retirement easier. For those who are unsure where to start, Robinhood can create a custom one-time recommended portfolio based on individual preferences. Customers also have the flexibility to choose their own investments. Robinhood Retirement also has no account fees, no account minimums and all trades are commission-free ensuring that customers can keep more of their money. Support is also available 24/7 to address any questions or concerns.
An IRA like Robinhood Retirement offers a way for individuals to save and invest for their retirement. It provides the opportunity to earn extra funds on contributions, transfers and rollovers, with the potential for up to 3% extra through Robinhood Gold. Contributions to an IRA can also offer tax benefits, with tax deductions on Traditional IRA contributions or tax-free withdrawals on Roth IRA contributions. Robinhood Retirement offers flexibility, ease of use and a range of investment options to help individuals build their retirement savings.
In addition to Robinhood Retirement, Robinhood is known for its user-friendly platform that allows users to invest in stocks, ETFs and cryptocurrencies (through Robinhood Crypto) with zero commission fees. Robinhood's intuitive interface and sleek design make it easy for users to navigate and advance their investing skills.
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This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.
Disclosures:
You must have earned (wage) 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, see 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. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any of our U.S. customers with a Robinhood brokerage account in good standing.
*Capitalize and Robinhood are separate and unaffiliated entities, and are not responsible for one another's policies, services, or opinions. A rollover is not your only option for an old 401(k). For more information, please visit Robinhoods Help Center or FINRAs site.
**Recommendations are one-time only. Any additional investment is at your sole discretion. Retirement recommendations arent available in Massachusetts at this time. More details are available in Retirement Recommendations
Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC),is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (Robinhood).
