Stash offers two ways to invest for retirement, both available with Stash+: a Managed Retirement Portfolio where our experts handle everything, and a Self-Directed Retirement Portfolio where you pick your own investments. Both are available as a Traditional or Roth IRA.

Traditional vs. Roth IRAs
A Roth IRA is funded with post-tax dollars—so after age 59 ½, withdrawals of the money you put in (contributions) are penalty and tax free. Prior to age 59 ½, withdrawals from the interest and/or earnings are subject to income tax and a 10% penalty. All earnings are tax free at age 59½ or older, assuming your first contribution was more than 5 years prior. A Traditional IRA is funded with pre-tax dollars, which can lower your annual tax burden now. However, withdrawals made after age 59 ½ are subject to income tax (but no penalty fee). Withdrawals made prior to age 59 ½ are generally subject to income tax and a 10% penalty.

Should I pick a Roth or Traditional IRA?
The type of retirement account you should pick can depend on factors like your current income, your current retirement savings plan, and your projected income in the future. We’ve put together a guide that can help you decide which account type is right for you.

Compare Roth vs. Traditional IRAs→

For additional information on IRAs and contribution limits, you can visit the official IRS website.

With Managed, our team picks the investments and adjusts them over time based on your retirement timeline. You don't make investment decisions. With Self-Directed, you choose from thousands of stocks and ETFs. You decide what to buy, sell, and when. Both include the 3% match on eligible contributions for Stash+ members.¹⁴

Stash does not currently support IRAs for anyone under the age of 18. If you’re interested in investing on behalf of a child, consider a Stash custodial account—it’s an easy way to pass on generational wealth.

Savvy investors know that saving for retirement can be a great way to build wealth, now and in the future. There are many reasons to start saving for retirement as soon as possible.

Build your future.
Your retirement can look a lot different than your parents’ retirement. If you plan to stop working at some point in the future, consider these factors.

• People are living longer

• Only 10% of us will have pensions

• We’ll probably receive less in Social Security funds than previous generations

• Future healthcare is a big (and potentially very expensive) unknown

Compounding.
Your savings in an IRA can benefit from compounding, which is a powerful way for your money to grow over time. When you invest and earn interest, that interest is added to your principal amount—then, you can start earning interest on the interest. To take full advantage of compounding, consider saving for retirement as early as possible.

Potential tax benefits.
Both Traditional and Roth IRAs can come with potential tax benefits. Traditional IRAs are funded with pre-tax dollars, which can lower your annual tax bill now.^* On the other hand, a Roth IRA is funded with post-tax dollars—so your investment earnings can grow tax-free.^**

_{*Withdrawing prior to age 59½, generally means you’re subject to income tax and a 10% penalty. Withdrawals after age 59½ are only subject to income tax but no penalty. Restrictions may apply depending on your income or filing status.}

_{**Withdrawals of the money (Contributions) you put in are penalty and tax free. Prior to age 59½, withdrawals of interest and earnings are subject to income tax and a 10% penalty. All earnings are tax free at age 59½ or older, assuming your first contribution was more than 5 years prior. Income Eligibility applies.}

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