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Betterment

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Save the tax-smart way with a Roth IRA

A Roth IRA lets you invest for retirement today and withdraw tax-free later. If you make less than $139,000 ($206,000 if you file jointly), it could be the right tax-advantaged account to help you invest your savings.

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The Roth IRA—A smart way to try Betterment

Starting with a Roth IRA can help you get to know Betterment and our approach to investing.

  • See our goal-based portfolio recommendations.

  • Explore personalized retirement advice on how to save.

  • Transfer an existing Roth IRA without a tax impact.

  • Personalized investments

    As a fiduciary, we build and recommend portfolios based on you and your goals. See portfolio options.

  • Trading managed for you

    We handle all the rebalancing and dividend reinvesting you'd do manually with an online broker, saving you valuable time. Experience our technology.

  • Socially responsible investing options

    We give you portfolio choices that allow you to express your views about the world. Explore Betterment SRI.

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Make your Roth IRA a first step toward a retirement plan.

Funding an IRA is a smart move no matter how much (or little) you think about retirement. Once you have an IRA, we'll help you create a full retirement plan by projecting your future income needs and showing you how you can save.

Open an account

Build your IRA savings without thinking about it.

The best way to save for the long term is to do it automatically. Set regular auto-deposits and our technology is designed to ensure you don't contribute beyond annual IRA limits.

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Sit back and relax because Roth IRAs are flexible.

Because you contribute to a Roth IRA on an after-tax basis, the federal government allows greater flexibility for making withdrawals before retirement.

  • There are no tax penalties for withdrawing your deposits.

    But you'll hit a 10% penalty on withdrawing any earnings before age 59½, so we still recommend keeping a separate emergency fund.

  • You can use up to $10,000 of earnings for a home down payment.

    After 5 years of having a Roth IRA, you can withdraw earnings penalty-free if you're a first-time homebuyer.

  • You can convert traditional IRAs and 401(k) plans into your Roth IRA.

    This can be a smart move for anyone who has accrued savings but would rather pay taxes now instead ofonce they're retired.

Top Questions About Roth IRAs

When deciding whether to roll over a retirement account, you should carefully consider your personal situation and preferences. The information on this page is being provided for general informational purposes and is not intended to be an individualized recommendation that you take any particular action. Factors that you should consider in evaluating a potential rollover include: available investment options, fees and expenses, services, withdrawal penalties, protections from creditors and legal judgments, required minimum distributions, and treatment of employer stock. Before deciding to roll over, you should research the details of your current retirement account and consult tax and other advisors with any questions about your personal situation.

Betterment is not a tax advisor, nor should any information herein be considered tax advice. Please consult a qualified tax professional.