Stash Roth IRA and Traditional IRA are tax-advantaged retirement accounts to help you invest for retirement.
What is a Stash IRA?
Stash Roth IRA is a retirement plan offered to Growth members. With Stash IRA, you manage your tax-advantaged accounts and get guidance and investment recommendations.
With Stash Retire, you can open a traditional or Roth IRA. Each account has potential tax benefits. Consulting with a qualified professional (like a tax accountant) can provide tax advice and help you decide which account is correct for you.
How Stash Retirement Work
Stash is a low-cost retirement platform with in-app educational services that allows you to choose your investments. With Stash Retire, you can create a portfolio tailored to your interests, risk profile, and goals that you can keep building until you’re 59 ½.
Stash Retire offers two individual retirement accounts–traditional and Roth IRA. IRA stands for Individual Retirement Arrangement, a tax-advantaged account.
Stash Roth IRA
Contribute post-tax money, which means you’ve already paid taxes on the money you’re contributing. Your money grows tax-free and won’t pay taxes when you withdraw money at retirement.
Stash Traditional IRA
Contribute pre-tax dollars, which means you have not paid income taxes on the money yet. This account can help you get tax deductions now, but you’ll be taxed on the money when you withdraw from the account in retirement.
To access Stash Retire, you must enroll in the Stash Growth plan–an upgrade from the Stash personal investment account.
Investing in a Stash IRA
- DIY investing and automation: choose your stocks and ETFs and decide on a values-based thematic investing.
- Get fractional shares: shares starting at $0.05.
- Invest automatically: set auto-savings to reach your goals.
The Stash “Retirement Portfolio” is not monitored. You must determine if you’re eligible for a particular type of IRA, or a tax deduction, or if a reduced contribution limit applies. You should consult with a tax advisor.
Stash Investments LLC (‘Stash’) is an SEC-registered investment adviser. Stash Capital LLC, an SEC-registered broker-dealer and member FINRA/SIPC.
Features & Benefits
Similar to Stash’s general investing account, you’ll get the following features:
- Minimum Investment: $5 to start investing.
- Access to Tax Benefits: Save on taxes now or later.
- Make Automatic Contributions: Set up auto-invest to meet your goals.
- Retirement advice: Get help in building long-term wealth.
It’s essential to understand all IRA accounts are regulated. There are tax implications. Withdrawing money before retirement can result in taxes, early withdrawal fees, and penalties assessed by the IRS.
- Must be at least 18 years old.
- Social security number.
- Verifiable personal information.
To access Stash Retire, you must enroll in the Stash Growth plan. Stash offers 3 subscription plans:
- Stash Beginner: $1 per month with access to advice, investing, banking, and insurance.
- Stash Growth: $3 per month includes all Beginner benefits and personal advice, Smart Portfolio, and retirement accounts.
- Stash+: $9 per month includes benefits from Beginner and Growth with advice for family finance and custodial accounts.
Who is it best for?
Stash Roth IRAs are best for beginners who don’t need personalized investment advice and have a good understanding of their risk tolerance.
Stash Roth IRA Review
Stash is a legit company and rated 4.7 out of 5 stars in the App Store. You can read our complete Stash Investing review for more information. Stash is an excellent DIY self-directed brokerage that gives you the same approach to building your retirement investing portfolio.
In our Stash Roth IRA review, we learned how simple it is to start investing for retirement. Like the general investing tools, you can create your investment portfolio of stocks, ETFs, and fractional shares.
Now, if you’re looking for personalized investment advice, you’ll need to go elsewhere. There are many interactive educational tools, but that won’t replace access to an investment adviser. Additionally, the app lacks tools such as tax-loss harvesting or risk level assessments.
Pros and Cons
- No minimum account balance requirements
- Transparent subscription fees
- Automatic savings
- No rebalancing
- No specific tax advice
How to Start a Stash Retirement Account
The time needed: 3 minutes.
Step-by-Step to opening a Roth IRA with Stash
- Getting started
- Click “Get Started” to open an account or click this link.
- Enter your information
- Submit your personal information such as name, email, and password.
- Fund your account
- Add at least $5 to your retirement account.
- Choose your investments
- Start investing and build your portfolio.
Stash Invest Alternatives
If you need more guidance, consider Robo-advisor like Betterment for investment advice and tax-coordination features. Read our Betterment IRA review.
What is Stash?
Stash Invest makes investing simple for first-time investors with a comprehensive investment app to help you achieve financial goals. With Stash, you get an all-in-one finance app to invest, bank, and retire well.
Stash’s philosophy is that everyone should have access to investing. They deliver on the idea with access, guidance, and financial education.
Access the stock market with fractional shares of individual stocks and exchange-traded funds (ETFs). And earn stock rewards with the stock-back card.
The Stash Beginner plans give advice, investing access, banking, and insurance.
- Stash Invest – comprehensive app to invest in stocks, ETFs, fractional shares.
- Stash Spend – checking, debit card, and banking features similar to traditional bank accounts.
- Stash Retirement – invest in your future with traditional and Roth IRAs are available.
- Stash Custodial – invest in your child’s future with custodial accounts.
Why Invest in Roth IRA?
IRAs can help you invest for retirement with potential tax advantages. Tax-advantaged accounts like IRAs are a retirement savings plan where you get tax benefits such as tax exemption or tax-deferral.
- Tax strategy–depending on the IRA, you can save taxes now with a deduction or save later with a tax-free withdrawal. With Roth IRAs, your contributions are from after-tax income.
- Grow your Investment with compounding and time.
- Withdraw contributions anytime with no penalty.
With Stash Roth IRA, you can add to your retirement plan with one-time or recurring contributions up to the IRS limit. For 2020, the IRS contribution limit is $6,000 for most people ($7,000 if 50 or older).
Learn more about Roth and Traditional IRAs.
It’s vital to understand all IRAs are regulated and have tax implications. Withdrawing money before retirement can result in taxes, early withdrawal fees, and penalties assessed by the IRS.
Stash vs. Acorns
Both Stash and Acorns offer Roth IRAs and Traditional IRAs. The critical difference is how you invest in these retirement accounts. With Stash, you have more control over investments and can create your portfolio diversification. In contrast, Acorns provides a diversified portfolio and asset allocation using their ETFs.
Does Stash offer Rollover IRA?
Stash is unable to roll over other IRAs into Stash retirement accounts.