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Robinhood IRA / Save for Retirement with Roth and Traditional

Robinhood IRA is a retirement account for traditional, Roth, and SEP to save for your future.

  • No minimum balance. No commissions. Start with $1.
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Robinhood IRA review quick take: Build your own retirement portfolio or use a one-time custom recommendation.

What is Robinhood IRA?

Robinhood IRAs allow you to save and invest money for retirement with tax advantages. IRA stands for Individual Retirement Arrangement, a tax-advantaged account with annual contribution limits set by the IRS.

Robinhood Retirement offers:

  • Traditional IRA: Earnings can potentially grow tax-deferred until you withdraw them in retirement.
  • Roth IRA: Make contributions using after-tax dollars and earnings grow tax-free.

Why invest using an IRA account? Depending on the IRA, you can save taxes now with a deduction or save later with a tax-free withdrawal. You can also grow your investment account with income from interest, dividends, and capital gains.

Brokerage services are offered through Robinhood Financial LLC (“RHF”), a registered broker-dealer (member SIPC).

Open your  IRA account in 2 minutes.

How Robinhood IRA Works

When you choose an IRA with Robinhood Retirement, you’ll have the option to invest on your own or get a one-time portfolio recommendation that you can follow. Unlike robo-advisor platforms, you must do research on your own and perform all the trades.

How it works:

  • Decide which IRA is best for you: Choose between a traditional or Roth
  • Select how you’d like to start: Do you want to transfer an existing IRA, make annual IRA contributions that count toward your limit, or both?
  • Open your IRA: Fund your account and start investing.

With a Robinhood Retirement, you can add to your IRA one-time or through recurring contributions up to the limits set annually by the IRS.

Robinhood IRA Review

Key Features

Robinhood retirement accounts include:

  • Minimum Contributions: $0 minimum deposit. $0 account minimum, but you will need $1 to start investing.
  • Diversified portfolio: investing strategies include exchange-traded funds (ETFs) and stocks.
  • Options trading: Qualified traders can trade options in a tax-advantaged account.
  • Automatic contributions: Set up recurring investments weekly, twice-monthly, monthly, or quarterly.
  • Security & Protection: Accounts are SIPC insured up to $500,000 but do not protect against market risks.
  • Portfolio Builder: Get a complimentary one-time portfolio recommendation.
  • Robinhood IRA match: Get a 1% or 3% (for Robinhood Gold subscribers) boost on your annual contributions.

Fees

  • Maintenance fees: $0
  • Commissions: $0

There’s no cost to open a Robinhood IRA. However, other fees may apply.

Pros and Cons

Pros

  • No commission trading
  • Invest in stocks and ETFs
  • Potential tax benefits

Cons

  • No tax strategy
  • Limited guidance and advice
  • No SEP IRA is offered

Who is it best for?

Robinhood IRAs are best for investors who want to manage their own retirement accounts using an easy-to-use, low-cost platform.

Robinhood IRA Retirement

 

Robinhood IRA Review

Robinhood IRA is a legitimate service offered by a publicly traded company ($HOOD). With Robinhood, you can choose how to invest using IRAs. Whether you want to invest on your own from the start or get a one-time portfolio recommendation.

In researching Robinhood IRA reviews, we learned that the app has a 4.2 out of 5-star rating in the App Store, reviewed by over 4 million users. However, it has a bad rating of 1.2 out of 5 on Trustpilot, with about 3,500 reviews, mostly from users with login issues or fund transfer delays.

While trading tools can benefit experienced investors, they may be overwhelming or confusing for beginners, potentially leading to suboptimal performance within IRAs.

In our review of Robinhood IRA, we found that actively managing your retirement funds can potentially lead to bigger gains, but it also comes with increased risks. Actively trading with your retirement fund could lead to losses, especially in volatile market conditions.

Ready to get started? Click here.

How to Start Using Robinhood Retirement

Minimum Requirements

  • Must be at least 18 years old
  • Verifiable personal information
  • U.S. citizen or resident
  • Social Security number

Step-by-Step to Open a Robinood IRA

The time needed: 3 minutes.

  1. Getting started
  2. Select account type
    • Submit your personal information, such as name, email, and password.
  3. Open an IRA
    • Complete the signup.
  4. Fund your account
    • Add money to your new brokerage account.

Robinhood IRA Alternatives

There are Robinhood IRA alternatives such as Acorns IRA, Webull IRA, SoFi IRA, Stash IRA, and more.

Find additional retirement accounts in the marketplace.

Robinhood Retirement FAQ

Does Robinhood Match contributions?

When you fund your IRA from outside accounts, transfer an existing IRA, or start to roll over an old 401(k). You’ll get 1% on top, no matter how much you transfer. Or, with Robinhood Gold, you’ll get 3% on annual contributions.

Can I withdraw from your Robinhood IRA account?

You can make early withdrawals, but there are tax implications for doing so, including possible income taxes, a 10% early withdrawal penalty, and other fees. The IRS website provides more information about the taxes and penalties.

Can I rollover my existing IRA or old 401(k) into Robinhood?

You can also transfer and roll over existing retirement plans into Robinhoo IRAs and potentially save on management fees.

  • Transfer an IRA: transfer your existing IRAs from other brokerages.
  • Roll over a 401(k): Submit a request to roll over your previous employer-sponsored plan.

Additional information

Minimum Deposit

$0

Fees

Tiered Pricing Plan: Monthly Fee

Investing Type

Automated Investing, Managed Investing

Key Features

Automatic Deposits, Automatic Rebalancing, Retirement Planning

Investment Portfolio

Modern Portfolio Theory (MPT)

Investments Available

ETFs

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