FAQ: Retirement Portfolio

By Stash Team
Last updated: June 9, 2026

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

Your Retirement Portfolio is an IRA: an individual retirement account designed to help you invest for the long term with tax advantages. The big choice is not which hot stock to buy. It is how you want taxes and investment management to work.

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

Stash subscribers can open a Stash Retirement Portfolio, even if they already contribute to an employer-sponsored retirement plan like a 401(k), or have an IRA at another firm. Stash may also match 3% of net monthly IRA contributions for eligible subscribers, subject to program terms.

When you open or update your Retirement Portfolio, you make two core choices:

1. Tax type: Roth IRA or Traditional IRA.

2. Management type: Self-Directed IRA or Managed IRA.

Roth IRA vs. Traditional IRA: the plain-English difference

A Roth IRA and a Traditional IRA are both retirement accounts. The difference is when taxes usually show up.

A simple way to think about it: a Roth IRA is often about paying taxes up front. A Traditional IRA is often about possibly getting a tax break now and paying taxes when you withdraw. The right fit depends on your tax situation, income, age, and retirement plan access, so it is worth asking a tax professional.

If you want a deeper comparison, read which Stash IRA is best for you.

Self-Directed vs. Managed IRAs

Stash gives you two ways to use your Retirement Portfolio. Both can help you invest for the long term. The difference is how much of the investing work you want to do.

Self-Directed IRAs

With a Self-Directed IRA, you choose the stocks and ETFs in your retirement portfolio. You decide what to buy, when to buy, and when to sell.

This option gives you more control. It also puts more responsibility on you to diversify, avoid overconcentrating in one investment, and stay focused when markets get noisy. Retirement investing is not day trading in a different wrapper. At Stash, we believe most investors are better served by a diversified portfolio, consistent contributions, and time in the market.

Managed IRAs

A Managed IRA is Stash’s do-it-for-me retirement option. You deposit money, and Stash builds and manages a diversified portfolio for you based on your age and a target retirement age of 65.

As you get closer to retirement, the portfolio is designed to gradually become more conservative. That means it generally shifts from a higher stock allocation toward more bonds over time. It does not remove risk, and it does not promise results. It is meant to help you follow a long-term plan instead of making every allocation decision yourself.

Managed IRAs with balances of $1,000 or more, calculated daily, carry a 0.25% annual management fee, charged periodically according to the program terms.

How do I convert my Stash IRA to a Managed IRA?

If you currently have a Self-Directed IRA, you may be able to convert it to a Managed IRA in the Stash app. This keeps the account open and changes how the investments are managed.

How the conversion works

1. Current holdings are sold. Stash automatically sells the investments in your existing IRA while the account remains open.

2. Cash settles. After the trades settle, the proceeds are available for the Managed IRA portfolio.

3. Managed portfolio is created. Stash reinvests the funds into your target-date-style Managed IRA portfolio.

4. Timing is usually 2 to 3 business days. You will see a pending notification on your portfolio screen until the process is complete.

Because the funds stay inside the IRA during the conversion, the conversion itself is not treated like taking money out of the IRA. That said, taxes can be complicated. Consult a tax professional if you have questions about your situation.

How to convert your account

1. Open the Stash app and navigate to your My Stash tab, or tap into your Retirement Portfolio.

2. Tap the prompt to Switch to Managed IRA, or tap See More next to the new Managed Retirement Portfolio.

3. Review your new portfolio allocation.

4. Review your Auto-Stash settings. You may be asked if you want to keep, adjust, or pause recurring deposits.

5. Review the agreements and tap Convert account.

Important things to know before converting

• The conversion is one-way. Once you convert a Self-Directed IRA to a Managed IRA, you cannot convert that same account back into a Self-Directed IRA.

• Like-to-like only. A Traditional IRA converts to a Managed Traditional IRA. A Roth IRA converts to a Managed Roth IRA. You cannot use this process to switch between Traditional and Roth tax types.

• Manual trading is disabled after conversion. Once the account is managed, Stash handles the investment mix for you.

• Fees apply. Managed IRAs carry a 0.25% annual management fee for eligible balances.

• Closing an IRA can have tax consequences. If you later decide you do not want a Managed IRA, do not assume closing the account is harmless. A full withdrawal may trigger taxes and penalties.

This should not be construed as tax advice. Consult a tax professional with additional questions.

Contributions and limits

You can contribute to your Stash Retirement Portfolio throughout the year, but the IRS sets annual IRA contribution limits across all IRAs you own. That means your Stash IRA, outside IRAs, Roth IRAs, and Traditional IRAs all count toward the same annual IRA limit.

IRA contribution limits for 2025 and 2026

The higher amount for people age 50 or older includes the IRS catch-up contribution.

IRA contribution deadline

The deadline to contribute for the prior tax year is generally the federal tax filing deadline, usually April 15. If you contribute before Tax Day, you may be asked which tax year the contribution should count toward.

Example: If you make an IRA contribution in March 2026, you may be able to designate it for 2025 or 2026, as long as you are eligible and have not exceeded the applicable annual 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 would exceed the applicable limit in Stash, you will get an alert. You should also keep your own records of IRA contributions at all institutions, because Stash can only see activity in your Stash account.

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. Follow the on-screen prompts to complete 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 funding source as the From account.

4. Select your Retirement Portfolio as the To account.

5. Verify the transfer details and select Transfer 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 within 1 to 2 business days.

How do I purchase an investment for my Retirement Portfolio?

Manual trading is available for Self-Directed IRAs only. If you have a Managed IRA, Stash handles buying and selling for you.

In the app

1. Decide what investment you would like to purchase.

2. Tap into the investment and tap Invest.

3. Enter the amount you wish to invest.

4. Select your desired funding source as the From account. Your Portfolio Cash is the cash in your Retirement Portfolio that is not currently invested.

5. Select your Retirement Portfolio as the To account.

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

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 Invest.

3. Choose your desired funding source for this investment. Your Portfolio Cash is the cash in your Retirement Portfolio that is not currently invested.

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

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

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

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 Auto-Stash contributions for my Retirement Portfolio?

Use this link for detailed guidance on Auto-Stash. It explains how to set or edit your Auto-Stash amount and frequency.

A practical retirement approach is not about perfect timing. It is about contributing what you can, as consistently as you can, while staying diversified. Auto-Stash can help you put that plan into motion.

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

If you have a Managed IRA, you do not need to manually sell investments. If you request a withdrawal, Stash will sell the appropriate mix of assets for you.

For a Self-Directed IRA:

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

2. Scroll down to Top Holdings and select View all investments.

3. Select the investment you would like to sell.

4. Tap Sell.

5. Enter the dollar amount that you would like to sell.

6. Follow the prompts to confirm the sale.

You must complete this process for each investment you wish to sell. After trades settle, funds are generally available to withdraw on the next business day.

How do I transfer funds from my Stash Retirement Portfolio?

Taking money out of an IRA is different from transferring cash out of a regular taxable investing account. IRA withdrawals may be taxable, may be reported to the IRS, and may be subject to penalties depending on your age, account type, and reason for withdrawal.

Important tax considerations

• Age 59½ matters. Withdrawals before age 59½ may be subject to a 10% IRS penalty in addition to applicable taxes, unless an exception applies.

• Roth IRA contributions are treated differently from earnings. You can generally withdraw original Roth IRA contributions without tax or penalty. Withdrawals of earnings before age 59½, or before the Roth IRA 5-year rule is satisfied, may be subject to taxes and penalties.

• Traditional IRA withdrawals are generally taxable. Withdrawals from a Traditional IRA are generally taxed as ordinary income. Early withdrawals may also face a 10% penalty unless an exception applies.

• Required minimum distributions may apply. Traditional IRAs generally require minimum distributions later in life. Roth IRAs do not require minimum distributions for the original owner during their lifetime.

How to initiate a withdrawal

1. Navigate to the Transfer screen.

2. Enter the amount you would like to withdraw. For Self-Directed IRAs, if you plan to withdraw more than your available cash, 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 through 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.

This self-service feature is for normal or premature distributions. If you are withdrawing due to a rollover, disability, or an inherited IRA, contact support@stash.com 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. 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 close your Retirement Portfolio, think through the tax impact. Closing an IRA generally means withdrawing the full balance unless the assets are transferred properly to another eligible retirement account. That can create taxes, penalties, and IRS reporting.

Before you can close your Retirement Portfolio, complete these steps:

1. Link your external bank account to Stash.

2. Turn off Auto-Stash for 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 your Manage accounts page.

2. Click Close Account next to Retirement Portfolio.

3. Fill out the form and 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 receive your balance in your externally linked bank account, follow this link to select your tax withholdings.

6. Follow the prompts to close your IRA. We will close your IRA within four business days and send you an email confirmation.

Important: If you are withdrawing from a Traditional IRA, review the mandatory minimum tax withholding information 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?

Stash does not currently support inbound IRA rollovers into Stash Retirement Portfolios. If this changes, Stash will update the available account options and instructions.

If you are trying to move retirement assets, be careful with timing and tax rules. A rollover or transfer that is done incorrectly can become a taxable distribution.

Retirement Portfolio FAQ

What is a Stash Retirement Portfolio?

A Stash Retirement Portfolio is an IRA offered through Stash. Depending on eligibility and account type, it can be a Roth IRA or Traditional IRA, and it can be Self-Directed or Managed.

What is the IRA contribution limit for 2026?

For the 2026 tax year, the IRA contribution limit is $7,500 if you are under age 50. If you are age 50 or older, the limit is $8,600. These limits apply across all your IRAs combined.

Can I have a Roth IRA and a Traditional IRA at the same time?

Yes, the IRS allows you to have both, but your combined annual contributions to all IRAs cannot exceed the annual IRA contribution limit. Your eligibility to contribute to a Roth IRA, or deduct a Traditional IRA contribution, depends on IRS rules.

Does contributing to a 401(k) stop me from opening a Stash IRA?

No. Having a 401(k) does not automatically stop you from opening or contributing to an IRA. It can affect whether you can deduct Traditional IRA contributions, and Roth IRA income limits still apply.

Can I lose money in an IRA?

Yes. An IRA is an account type, not a specific investment. If your IRA holds stocks, ETFs, or bonds, the value can rise or fall. That is why diversification, a long-term mindset, and consistent contributions matter.

Is a Managed IRA better than a Self-Directed IRA?

Neither is automatically better. A Managed IRA may fit investors who want Stash to build and adjust a diversified retirement portfolio for them. A Self-Directed IRA may fit investors who want to choose their own investments and are comfortable managing allocation and risk.

Can I withdraw from my Stash IRA before age 59½?

You may be able to withdraw before age 59½, but taxes and penalties may apply. Roth IRA contributions and earnings have different rules. Traditional IRA withdrawals are generally taxable. Consider speaking with a tax professional before taking an early distribution.

Does Stash provide tax advice for IRAs?

No. Stash provides account information and investing tools, but it does not provide tax advice or monitor your eligibility for IRA deductions, Roth IRA contributions, or tax treatment. A tax professional can help you understand your specific situation.