FAQ: Retirement Portfolio

Traditional or Roth? How do I choose the right Stash IRA?

This should not be construed as tax advice. Stash does not monitor whether a customer is eligible for a particular type of IRA or a tax deduction. Clients should consult with a tax advisor.

Stash+ users can open an IRA with Stash, even if you already contribute to an employer-sponsored retirement plan (401k) or have an IRA somewhere else. All you need is an initial investment to get started. In addition, Stash will match 3% of all net monthly contributions!

When you are ready to save for retirement, Stash offers two main choices you need to make:

1. The Tax Type: Do you want a Roth IRA or a Traditional IRA?

2. The Management Type: Do you want to pick your own investments (Self-Directed) or have our experts do it for you (Managed)?

Stash offers two types of retirement accounts (also known as IRAs): a Roth IRA or a Traditional IRA. When you sign up for Stash+ or open your Retirement Portfolio, we’ll help you pick the account that’s right for you. Roth and Traditional IRAs have different tax implications, so you may want to consult with a tax professional before opening your IRA. There are also limits to the annual contribution you can make, depending on your age.

Self-Directed vs. Managed IRAs

Self-Directed IRAs: You are in the driver's seat. You choose exactly which stocks and ETFs to buy for your retirement portfolio, and you decide when to sell them.

Managed IRAs: Our "Do It For Me" option. If you are opening your very first Stash IRA, you can choose a Managed Retirement account. You simply deposit money, and Stash automatically builds an expert portfolio based on your age and a target retirement age of 65. As you get older, the system automatically shifts your investments from riskier stocks to safer bonds to protect your savings. (Note: Managed IRAs with balances of $1,000 or more, calculated daily, carry a fee of 0.25% of the account balance charged every three months.).

Contributions and limits:

You can contribute to your Stash Retirement Portfolio at any time, but there are strict IRS guidelines on how much you can deposit per year.

Contribution Limits for the 2025 Tax Year:

• 49 years old or younger: $7,000.

• 50 years old or older: $8,000.

Contribution Limits for the 2026 Tax Year:

• 49 years old or younger: $7,500.

• 50 years old or older: $8,600.

The deadline for contributing to your IRA for the previous tax year is the same as the tax filing deadline (typically April 15). When you make a contribution to your IRA before Tax Day, you’ll be asked which year you would like the contribution to go toward. If you’ve already maxed out your IRA for the previous year, you’ll only be able to contribute toward the current calendar year’s limit.

How will I know if I’m close to my limit? If you attempt to make a contribution to your Stash Retirement Portfolio that will exceed your limit, you’ll get an alert from us telling you that you’re at your limit. We also suggest keeping your own records of your contribution amounts across all your IRAs at any institution.

How do I open a Stash Retirement Portfolio?

1. Determine which Stash IRA is best for you.

2. Open this link, log in, and select Get started.

3. Continue to follow the on-screen prompts to complete the account setup.

How do I add funds to my Retirement Portfolio?

1. Use this link to begin a transfer.

2. Enter the dollar amount you would like to transfer.

3. Select your desired source of funds as the “From” account.

4. Select your Retirement Portfolio as the “To” account.

5. Verify the transfer details and click the Transfer button to initiate the transfer.

For Self-Directed IRAs: Transfers made before 3:30 p.m. ET are generally available to invest using Portfolio Cash within minutes. For Managed IRAs: Your cash transfer will be automatically invested for you during the next trading window (typically 1-2 business days).

How do I purchase an investment for my Retirement Portfolio?

Note: Manual trading is disabled for Managed IRAs. The system handles all buying and selling for you.

In the app:

1. Decide what investment you would like to purchase.

2. Tap into the investment and tap the blue Invest button.

3. Enter the amount you wish to invest.

4. Select your desired source of funds as the “From” account.

   1. Your Portfolio Cash represents the funds in your Retirement Portfolio that are not invested.

5. Select your Retirement Portfolio as the “To” account.

6. Verify the details and tap the Invest button to initiate the investment.

Note: If you would like to make this a recurring investment, use this article to learn more about managing your Auto-Stash settings.

On the web:

1. Decide what investment you would like to purchase.

2. Click on the investment and click the blue Invest button.

3. Choose your desired source of funds for this investment.

   1. Your Portfolio Cash represents the funds in your Retirement Portfolio that are not invested.

4. Select your Retirement Portfolio as the location for your investment.

5. Enter the amount you wish to invest and click the blue Continue button.

6. Verify the details and click Confirm to initiate the investment.

Note: If you would like to make this a recurring investment, use this article to learn more about managing your Auto-Stash settings.

How do I turn on or edit the Auto-Stash contributions for my Retirement Portfolio?

Use this link for detailed guidance for everything Auto-Stash! This will walk you through how to set or edit your Auto-Stash amount and frequency.

How do I sell the investment(s) in my Retirement Portfolio? (Self-Directed IRAs Only)

Note: If you have a Managed IRA, you do not need to manually sell investments. Simply request a withdrawal, and the system will automatically sell the correct mix of assets for you.

1. Navigate to your retirement portfolio or use this link.

2. Navigate to your retirement portfolio.

3. Scroll down to the “Top Holdings” section and select View all investments.

4. Select the investment you would like to sell.

5. Tap the Sell button.

6. Enter the dollar amount that you would like to sell and click Sell. Follow the prompts to confirm the sale.

You must complete this process for each individual investment you wish to sell. These funds will be available to withdraw on the next business day.

How do I transfer funds from my Stash Retirement Portfolio?

Important tax considerations: The minimum age to withdraw money from an IRA is 59 1/2 years old. If you withdraw funds before age 59 1/2, you may be subject to tax penalties from the IRS.

• Roth IRA: Withdrawals of the money (Contributions) you put in are penalty and tax-free. Prior to age 59 1/2, withdrawals of interest and earnings are subject to income tax and a 10% penalty. All earnings are tax-free at age 59 1/2 or older, assuming your first contribution was more than 5 years prior. Income Eligibility applies.

• Traditional IRA: Withdrawing prior to age 59 1/2 generally means you’re subject to income tax and a 10% penalty. Withdrawals after age 59 1/2 are only subject to income tax but no penalty.

How to initiate a withdrawal:

1. Navigate to the Transfer screen.

2. Enter the amount you would like to withdraw. (Note for Self-Directed IRAs: If you expect to withdraw more than the available cash listed, you may need to wait for recent sales to settle or sell more investments).

3. Select From and choose your IRA.

4. Select To and choose your destination bank account.

5. Follow the on-screen prompts to review your information and set your mandatory Federal and State tax withholding preferences via the IRA Distribution Form.

6. Review your final transfer details and select Transfer to complete the process.

Important Note for Managed IRAs: If you attempt to withdraw more than 90% of your Managed IRA balance, the system will require you to withdraw 100% of your funds, which will permanently close the account.

Notes: This self-service feature is for "Normal" or "Premature" distributions. If you are withdrawing due to a rollover, disability, or an inherited IRA, please reach out to us at [email protected] so we can assist you further. If you are looking to transfer your investments directly to another broker, you will have to initiate an ACAT transfer from your new brokerage account.

If you are looking to transfer your investments directly to another broker, you will have to initiate an ACAT transfer from your new brokerage account. Use this link for specific details about ACAT transfers from Stash to a different brokerage account.

How do I close my Retirement Portfolio?

Before you can close your Retirement Portfolio (IRA), you must complete the following steps:

1. Link your external bank account to Stash.

2. Turn off Auto-Stash for your IRA.

After you’ve completed the steps above, follow these steps to finish closing your IRA:

On the app:

1. Open this link.

2. Tap the gear icon in the upper-right corner.

3. Scroll to the bottom, then tap Close retirement account.

4. Follow the prompts to close your Retirement Portfolio.

On the web:

1. Use this link to open to your “Manage accounts” page.

2. Click Close Account next to Retirement Portfolio.

3. Fill out the form (follow the on-screen instructions).

4. Wait up to 3 business days for your balance to be transferred to your externally linked bank account.

5. After you’ve received your balance in your external linked bank account, follow this link to select your tax withholdings.

6. Follow the prompts to close your IRA.

   1. We’ll close your IRA within four business days and send you an email to confirm that your IRA has been closed.

Important Notes: If you are withdrawing from a Traditional IRA account, you must review the mandatory minimum tax withholding information seen here: IRA Close or Withdrawal State IRA Withholding Requirements. If you do not follow these regulations, your transfer could be rejected.

Closing your IRA will not close your subscription. Get help closing your subscription

Can I roll over money from an old IRA into my Stash Retirement Portfolio?

We’re not able to rollover other IRAs into Stash Retirement Portfolios at this time, but we’re planning on offering this in the future. Stay tuned for updates on this.