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Robinhood

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Robinhood
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Potential tax benefits inside

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Plus, earn a 3% boost on IRA contributions with Robinhood Gold. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Want to learn more about Robinhood Retirement? Each type of IRA has unique benefits and limitations. Here are some quick highlights:

Roth IRA
  • Tax benefit: Your investments can grow tax-free because you contribute after-tax dollars. That means you won’t pay taxes on qualified withdrawals.
  • Contribution limitations: You’re only eligible to contribute if you make under a certain amount per year.
  • Withdrawals: If you withdraw your earnings before you're 59 ½—and before you’ve owned your Roth IRA for at least 5 years—you may have to pay a 10% tax penalty, but you can withdraw your contributions anytime without penalties. Compared to traditional IRAs, you aren’t required to make a withdrawal after you reach a certain age.

Learn more about the benefits and limitations of a Roth IRA.

Traditional IRA
  • Tax benefit: You generally contribute pre-tax dollars. That means you could save on taxes each year by potentially taking a tax deduction for the amount you contribute.
  • Contribution limitations: There’s no income limit to be able to contribute. However, if you (or your spouse, if you’re married) are covered by a retirement plan through an employer, you may have to deduct less on your taxes than you would otherwise.
  • Withdrawals: You can start withdrawing money without penalties once you’re 59 ½. You’re generally taxed on the amount you withdraw. You can withdraw before you’re 59 ½, but you may have to pay a 10% tax penalty. After you turn 73, you must withdraw a minimum amount each year to avoid tax penalties.

Learn more about the benefits and limitations of a traditional IRA.

Did you know?

When you sign up for Robinhood Gold ($5/month), you get a 3% boost on every eligible annual IRA contribution.

Not ready to sign up for Gold? You can still earn a 1% boost without a Gold subscription.