A Roth IRA is an individual retirement account that allows people under a certain income ceiling to contribute each year — You pay taxes on the contributions you make now, but in most cases, you can withdraw your money in retirement without paying additional taxes.
What You’ll Discover in This Article
Hey there! I’m super excited to share everything you need to know about opening a Roth IRA with Robinhood. If you’ve been wondering whether this popular investment platform offers retirement accounts, you’re in luck! Not only can you open a Roth IRA with Robinhood, but they also offer some pretty cool features that might make them a great choice for your retirement investing journey
The Short Answer: Yes, You Can Open a Roth IRA with Robinhood
Let’s cut right to the chase – yes, you absolutely can open a Roth IRA with Robinhood! In fact, Robinhood offers both Traditional and Roth IRAs as part of their retirement account options. This is great news for those who already use Robinhood for other investments and want to keep things simple by using the same platform for retirement savings
Types of IRAs Available at Robinhood
Robinhood currently offers two main types of retirement accounts
- Traditional IRA: Allows you to invest with pre-tax dollars. Your contributions may be tax-deductible now, but you’ll pay taxes when you withdraw the money in retirement.
- Roth IRA: Allows you to contribute after-tax dollars. While you don’t get a tax break now, your qualified withdrawals in retirement can be completely tax-free!
What’s even better? Robinhood gives you options for how to manage these accounts. You can choose between:
- Self-directed IRAs: Pick your own investments and manage them yourself
- Managed IRAs: Let Robinhood Strategies team manage your investments for you
And get this – you can actually open up to 4 different IRAs at Robinhood:
- A self-directed Traditional IRA
- A self-directed Roth IRA
- A managed Traditional IRA
- A managed Roth IRA
Roth IRA Eligibility and Contribution Limits on Robinhood (2025)
Before you rush to open your Roth IRA, it’s important to know if you’re eligible and how much you can contribute.
You can put money into a Roth IRA on Robinhood for the 2025 tax year if:
- Your income is under $165,000 if filing single
- Your income is under $246,000 if filing jointly
As for contribution limits, you can contribute:
- Up to $7,000 if you’re under age 50
- Up to $8,000 if you’re age 50 or older
Remember, these contribution limits apply to all your IRAs combined, not just your Robinhood account. And here’s a handy tip: you can actually contribute to your IRA for the previous tax year until the IRS tax filing deadline!
The Robinhood IRA Match: A Pretty Sweet Deal
They have an IRA match program that sets them apart from many other IRA providers. Yes, you read that right: Robinhood will match a portion of the money you put in!
Here’s how it works:
- 1% match for regular users: Robinhood adds an extra 1% to every eligible dollar you contribute, up to the annual IRA contribution limits
- 3% match for Robinhood Gold subscribers: Pay $5 per month for Robinhood Gold, and they’ll triple that match to 3%!
They’ll even match up to 1% of any amount you move from another IRA or roll over from an old 401(k)!
But there are a few important things to know about this match:
- The match must be held in your Robinhood IRA for at least 5 years to avoid a potential withdrawal fee
- If you get the 3% Gold match, you need to stay subscribed to Gold for 1 year after your first Gold match to keep the full amount
- Accounts managed by Robinhood Strategies are not eligible for the IRA match on contributions
How to Set Up Your Roth IRA with Robinhood
Setting up your Roth IRA with Robinhood is pretty straightforward. Here’s what you need to do:
- Select “Retirement” → “Get started” in the Robinhood app or on web classic
- Follow the prompts to set up your account
- Choose between a Traditional IRA or a Roth IRA
- Decide if you want to self-direct your investments or have them managed by Robinhood Strategies
Don’t worry if you don’t choose to use Stock Lending or recurring contributions when you first set up your account. You can always add them later.
Funding Your New Robinhood Roth IRA
Once you’ve set up your Roth IRA, you’ll need to fund it. Robinhood gives you several options:
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Link your external bank account:
- Go to Account → Menu (3 bars) or Settings
- Select Transfers
- Select “Transfer accounts in” or “Add account” in Linked accounts
- Follow the prompts to link accounts and transfer funds
-
Transfer from an existing Robinhood account: You can move money from your individual investing account to your IRA.
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Transfer from another IRA or 401(k): Robinhood allows you to transfer money from an existing IRA at another firm or rollover money from an employer-sponsored 401(k).
Just keep in mind that you currently can’t make direct contributions to an IRA from a managed taxable account. If that’s what you’re trying to do, you’ll need to withdraw cash from your managed taxable account, transfer it to a self-directed taxable account, and then use that cash to contribute to your IRA.
IRA Limited Margin and Cash Accounts
When opening your Roth IRA with Robinhood, you’ll have the option to choose between a limited margin account or a cash account.
Limited margin accounts let you trade with unsettled funds from stock and option sales. This means you don’t have to wait for funds to settle before making another trade.
Cash accounts require you to wait 1 day to trade with funds from stock sales and 1 day to trade with funds from option sales.
To switch between account types:
- Select Account (person) → Menu (3 bars) or Settings
- Select Investing
- Select your IRA
- In Account type, select either “Switch to limited margin account” or “Switch to cash account”
Note that you can’t switch account types for an account managed by Robinhood Strategies, and you need to use the app (not the website) to switch to a limited margin account.
Important Warning About Trading in Your IRA
While having flexibility is nice, I should warn you that day trading activities should be avoided inside retirement accounts due to the risk of losing all funds involved. If you trade with unsettled funds, it could trigger pattern day trading rules.
Unlike regular margin accounts, you can’t borrow against the value of your IRA holdings or create a debit balance. Additionally, the IRS’s annual contribution limits for IRAs may prevent you from depositing additional funds to meet day trade requirements.
Security and Protection for Your Robinhood Roth IRA
Worried about the safety of your retirement funds? Robinhood provides SIPC protection for your securities and cash up to $500,000 (including $250,000 for claims for cash) per account.
However, it’s important to note that SIPC coverage does not protect against a loss in the market value of securities. It only provides coverage in the case of broker-dealer failure.
Who Can Open a Robinhood Roth IRA?
The Robinhood IRA is available to any US customers with a Robinhood brokerage account in good standing. However, if you have a B-Notice, you won’t be able to open an IRA until your account restrictions are lifted.
Also, remember that you must have compensation (wage income) in order to contribute to an IRA.
My Personal Take: Should You Open a Roth IRA with Robinhood?
I’ve been using Robinhood for a while now, and I think their Roth IRA offering is pretty solid, especially if you’re already comfortable with their platform. The 1% or 3% match they offer is pretty much unheard of in the self-directed IRA space and could really boost your retirement savings over time.
However, there are a few things to consider:
Pros of opening a Roth IRA with Robinhood:
- Easy to use interface, especially if you’re already familiar with Robinhood
- No minimum investment requirement
- IRA match of 1% (or 3% with Gold subscription)
- Commission-free trades
- Option for either self-directed or managed accounts
Cons to keep in mind:
- Limited investment options compared to some other platforms (though they do offer stocks, ETFs, and options)
- Relatively new to the retirement account space compared to established players
- Customer service might not be as robust as traditional brokerages
Final Thoughts: Is a Robinhood Roth IRA Right for You?
Whether a Robinhood Roth IRA is right for you depends on your personal situation, investment goals, and preferences. If you’re already using Robinhood for other investing and like their platform, adding a Roth IRA could make a lot of sense – especially with that sweet IRA match they offer.
Remember that all investing involves risk, and retirement accounts are particularly important because they hold your future financial security. Make sure you understand the fees, investment options, and limitations before proceeding.
If you’re still not sure, it might be worth comparing Robinhood’s offering to other popular Roth IRA providers like Fidelity, Vanguard, or Charles Schwab before making your decision.
But the bottom line is: Yes, you can definitely open a Roth IRA with Robinhood, and depending on your situation, it might be a pretty good choice!
Have you opened a Roth IRA with Robinhood? I’d love to hear about your experience in the comments below!
Important Disclosures
All investing involves risk and loss of principal is possible. Investors should consider their investment objectives and risks carefully before investing.
Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59½ may be subject to a penalty tax.
For specific questions about your personal situation, you should consult a tax professional. Robinhood does not provide tax advice.
How can I open a Roth IRA, and what are the eligibility requirements?
In order to contribute to a Roth IRA, you must earn some income. But if you make too much in a certain year, you can’t directly contribute the full amount, or sometimes anything at all. However, if you follow a certain set of steps, you might be able to do a “Backdoor Roth.” (A “backdoor Roth” typically refers to a traditional 401k or IRA that has been converted into a Roth IRA, which investors sometimes do to seek future tax savings).
The income limits for a Roth IRA use your modified adjusted gross income (MAGI). To get your MAGI, first figure out your adjusted gross income (AGI) by starting with your total income and subtracting certain tax-deductible expenses such as:
- Certain retirement account contributions
- Student loan interest
- Health Savings Account contributions
- Alimony paid
Then, you add back in things like IRA contribution deductions, student loan and tuition deductions, rental losses, half your self-employment tax, and more.
How do withdrawals from a Roth IRA work?
Because Roth IRAs are retirement accounts, withdrawals are restricted. You can take out your contributions anytime without paying penalties or taxes. But you can only withdraw earnings without doing so if you’re at least 59½ years old, and opened the Roth IRA at least five years ago. You can also make withdrawals if you meet one of the following requirements:
- You’re withdrawing $10,000 or less to buy your first home
- You can use the money for certain approved school costs, like tuition and fees.
- If you can’t do any substantial gainful activity because of a physical or mental condition ANDA qualified physician says the condition has lasted or will continue to last continuously for at least a year or will likely lead to death, then you are totally and permanently disabled.
- You pay for medical bills that your insurance didn’t cover or insurance premiums while you were out of work with the money.
- You set up a substantially equal periodic payment (SEPP) plan
Depending on whether you meet these conditions, you might have to pay a fine and income taxes on any money you take out.
How To Open A Roth IRA On Robinhood (Tutorial) | Get A 1% Match!
FAQ
Is it safe to open a Roth IRA with Robinhood?
Yes, it is generally safe to open a Roth IRA with Robinhood because the accounts are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 against firm failure.
What is the best company to open a Roth IRA?
Vanguard, Fidelity , and Schwab are good to go for ROTHs. Just remember to actually select what the roth is composed (index funds for example). People make the mistake of putting money into a Roth IRA without investing it in anything. This means that the money doesn’t grow.
How do I open a Roth IRA with Robinhood?
To open a Roth IRA on Robinhood, log in to the app or web classic, go to the Retirement section, select Get started, and then follow the prompts to choose a Roth IRA, set up a managed or self-directed account, and link a bank account for funding.
Can I withdraw from Roth IRA Robinhood?
Yes, you can withdraw from a Robinhood Roth IRA, but the process and any resulting taxes or penalties depend on whether you’re withdrawing contributions or earnings. You can always withdraw your Roth IRA contributions without taxes or penalties, but withdrawing earnings before age 59½ and before the account is five years old may result in a 10% penalty and taxes.
Can I open a Roth IRA with Robinhood?
Yes, you can open a Roth IRA with Robinhood. In fact, Robinhood offers both traditional and Roth IRA accounts, allowing you to choose the option that best suits your retirement savings goals.
How do I set up a Robinhood IRA?
For more details, check out IRS Contributions to IRAs. To begin, go to Retirement → Get Started and then follow the on-screen instructions to create an account in the Robinhood app or on web classic. You can choose between a traditional IRA or a Roth IRA.
Does Robinhood offer an IRA?
Robinhood is far from the first financial institution to offer individual retirement accounts, or IRAs. In fact, it was among the last of all the brokers we review. It might be the first, though, to offer matched contributions to non-employer IRAs. Usually, you can only get this through employer-sponsored plans.
Can a Robinhood IRA be deductible?
Customers can do both if they want to,” says Sam Nordstrom, the head of product management at Robinhood. Nordstrom says that Robinhood IRAs support “the full range of recognized contribution types,” including both deductible and non-deductible traditional IRA contributions, Roth contributions and rollovers.
How many IRAs can I open at Robinhood?
You can open 2 of each type of IRA at Robinhood, a managed and a self-directed IRA of each type, even if you already have an IRA at another financial institution or a workplace retirement plan, like a 401 (k). A traditional IRA allows you to invest for retirement with pre-tax dollars and tax advantages.
What is a Robinhood IRA match?
The IRA match is a 3% match on annual contributions with a Robinhood Gold subscription (fee applies), or 1% without, that Robinhood adds to your IRA for making eligible contributions. That means you’ll automatically get an extra 1% or 3% on every eligible dollar you contribute every year, up to the annual IRA contribution limits set by the IRS.