Individual retirement accounts IRAs will have a 1% match on eligible contributions, according to Robinhood.
The waitlist for the Robinhood Retirement opened Tuesday, allowing customers to get early access to it on a rolling basis over the course of the next few weeks, according to the retail trading platform. The retirement program will be open to everyone next month.
Customers can choose from a traditional or Roth IRA, where they can build a custom portfolio by investing in stocks andETFs of their choice or recommended by the app, according to Robinhood Retirement. Robinhood says that the 1% IRA match applies to new contributions from any linked external bank account up to the limits set by the Internal Revenue Service IRS each year.
Customers can't withdraw their contributions earlier than five years if their remaining IRA balance stays above or above the contribution amount that earned the IRA Match, according to Robinhood on its website.
In the blog post announcing the IRAs and 1% matching, Robinhood said that they believe that saving for retirement should be easy and accessible to all and should not depend on where or how you work. The company said they are taking on gig work, side hustles and building their own companies. Automated transfers from a paycheck or contribution matching are often not available to the gig economy, which makes up as much as 40% of America's total workforce. For 2022, the contribution limit for IRAs is $6,000 for people under 50 and $7,000 for those above that age. The IRS s limit for 2023 is slightly higher, with ages below 50 allowed to contribute $6,500 and ages 50 and up allowed $7,500.
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Robinhood, which went public in mid- 2021, reported $361 million in third quarter net revenues, compared to $318 million in the prior quarter and $365 million in last year's third quarter. Its net loss fell to $175 million, an 87% drop from the $1.317 billion net loss reported in the same period in 2021, which was an 87% drop from that period in the same period in 2021.