Robinhood IRA Review 2024: Features, Fees, and More

Best if you want

A low-cost IRA with a 1% match on eligible contributions; that’s up to $65 per year for investors under 50, and $75 per year for investors 50 and over, based on 2023 IRS guidelines. As contribution limits increase, so will the potential value of this match. The 1% match is one of the most unique and compelling features in any IRA product on the market – it’s extra money for users who contribute to their account, though limitations apply. Robinhood also allows users to craft their own portfolios or get a professionally recommended portfolio to get started.

Fees

Robinhood’s IRA product is free for users. That means:

$0 annual account fee
$0 commissions on trades of stocks, ETFs. Other fees may apply. Fee Schedule

What you can invest in

Robinhood allows users to invest in individual stocks as well as a wide selection of ETFs. This allows users to create their own customized portfolios. Robinhood also offers users the ability to get a professionally recommended portfolio. These portfolios include 6-9 exchange-traded funds (ETFs) that are constructed by Robinhood’s investment strategy team, using a combination of an algorithm and research. The recommendation matches you to a portfolio that makes sense for you, based on your profile.

Limitations

While Robinhood’s 1% match is a compelling feature to help boost retirement savings, it is limited by the standard IRA contribution limits. For users under 50, the 2023 limit for non-rollover contributions is $6,500 – that means the maximum match is $65 in 2023. For those 50 and over, the limit is $7,500, so the maximum match is $75 in 2023. Users can receive Robinhood’s 1% match every year on contributions from an external account.

When withdrawing money from your IRA less than 5 years after making the contribution, Robinhood may charge an Early IRA Match Removal Fee equal to the IRA Match amount earned if your remaining IRA balance is lower than your contribution amount that earned the IRA Match.

The recommended portfolio is a one-time only event. Recurring investments are at the sole discretion of the customer. It is not available to Massachusetts residents.

Conclusion

Robinhood has been a pioneer in the investing space for years and continues the trend with the introduction of retirement accounts. Their IRA product is a strong fit for many types of investors, whether you want to pick your own investments or get a custom recommended portfolio. Robinhood is the only IRA on the market that currently offers an annual match on contributions, helping its users get ahead with their retirement savings.

Robinhood is transparent with its fee structure. This includes commission-free trading.

Robinhood also offers a very intuitive mobile experience; this is a great benefit for users who like to manage their finances from their phone. Robinhood also offers a great desktop trading experience for those who prefer to use a desktop.