By Ranjeet
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To open an IRA with Robinhood, you need two things: earned income and a Robinhood account.
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To open a Robinhood IRA, you must first be qualified to open a standard, tax-paying Robinhood brokerage account.
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Another prerequisite for the Robinhood IRA is opening a taxable brokerage account, as there is no other method to create a Robinhood login at this time.
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Robinhood IRAs, according to Nordstrom, allow for "the complete spectrum of recognised contribution options,
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" which includes standard IRA contributions (both deductible and non-deductible), Roth IRA contributions, and rollovers.
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High-income earners may not be able to fund a Roth IRA.
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According to Nordstrom, a Robinhood IRA gives you access to the same stocks and ETFs as a standard Robinhood account.
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Unfortunately, IRAs currently do not permit the trading of options or cryptocurrencies. He claims that in the future Robinhood will allow options trading in IRAs but not cryptocurrency trading
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There are three advantages unique to the Robinhood IRA that are not available with other types of individual retirement accounts: immediate deposits, matching contributions, and personalised investment suggestions.
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In 2022, the maximum yearly IRA contribution is $6,000 ($7,000 if you're 50 or older), and the match applies to donations up to that amount.
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However, there is a catch: you will lose the matching funds if you withdraw the money from your Robinhood IRA before the five-year mark.
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Investing Suggestions The Robinhood IRA includes a robo-advisor-like capability that can suggest ETF portfolios to customers.
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Robinhood IRA signups will begin on December 6, 2022, and the company is giving some users early access through a referral scheme.
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