Traditional and Roth IRA
Investing for Retirement Made Easy
- Start in just minutes
- Automate deposits that can be paused
- Leverage potential tax benefits
- Get a diversified ETF portfolio
What is an IRA?
Individual Retirement Accounts (IRAs) help people save and invest for their retirement while enjoying certain tax advantages. IRAs can be used by individuals who are self-employed, own a business, or simply want to invest with tax benefits. To encourage people to save long-term, the IRS imposes a penalty to withdrawals before the age of 59 ½.
TRADITIONAL IRA*
- Get your tax benefits upfront
- Don’t pay income tax on the money you put in
- You pay income tax when you withdraw
- Best if you already have an emergency fund
ROTH IRA*
- Get your tax benefit when at retirement
- Pay income tax in the money you put in
- No income taxes for withdrawals after age 59½
- Can be used in case of an emergency
You don’t need to be an expert to invest your money successfully. Finhabits does that for you.
Traditional IRA vs Roth IRA
Traditional IRA
Roth IRA
Funded with
Pre-tax dollars
After-tax dollars
Contribution Limits
$7,000 ($8,000 if age 50 or older)
$7,000 ($8,000 if age 50 or older)
Withdrawal Age*
Age 59½ and over
Age 59½ and over
Income Limits (2024)**
No income limits to participate
Modified AGI single $161,000/married $240,000
* Roth IRA: Early distributions or withdrawals of contributions and earnings could avoid tax penalties provided it is a qualified exception such as unreimbursed medical expenses, first-time home purchase, qualified educational expenses, death, disability, and health insurance costs, if unemployed. Traditional IRA: There are no income limits for Traditional IRAs, but there are income limits for tax-deductible contributions. Other rules apply to both IRAs. Please consult with a tax expert for more details.
How can you start investing?
1
Download the
Finhabits app
You can get started in Spanish or English. Our service is 100% bilingual.
2
Register with your
SSN or ITIN
Select an investment portfolio: Conservative, Aggressive, or Recommended.
3
Schedule your
deposits
Finhabits lets you connect your bank account to your Finhabits account within seconds.
Download Finhabits
You don’t need to be an expert to invest your money successfully. Finhabits does it for you.
More than 80,000 people have already invested with Finhabits!
Investment
Accounts
Three types of investment portfolios built to meet your financial goals — saving for an emergency, saving for retirement, or growing your wealth.
Automated
deposits
Finhabits lets you schedule weekly, biweekly, or monthly deposits. You can start with $10, $100, or $1,000. You decide!
Dividend
reinvestment
All the dividends you earn are reinvested to purchase more shares. This helps accelerate the power of long-term compounding in your investments.
Portfolio
rebalancing
Finhabits rebalances your portfolio regularly to ensure an appropriate asset mix for your investments.
Educational videos
and podcasts
Learning about money and financial habits can be difficult. That’s why the Finhabits app includes educational videos and podcasts about building good financial habits.
Bilingual App
& Support
The Finhabits app and customer support is available in both English and Spanish.
Frequently asked questions
How much money do I need to open a Finhabits IRA?
There is no minimum initial deposit required to open a Finhabits IRA.
Can I withdraw money from my IRA?
Yes, Finhabits allows you to withdraw your IRA money at any time. Keep in mind that the IRS may impose an early withdrawal penalty before the age of 59 ½ with the intention of encouraging you to save long-term. Under some special, qualified exceptions, you can withdraw money from your IRA without penalty. Rules vary depending on the type of IRA you have. Roth IRA allows you to withdraw your contributions at any time without any penalty or federal tax if you have met the 5-year account requirement. Other rules apply. Please consult with a tax expert for more details.
Can I transfer an IRA or 401k from another institution?
Yes, please contact the Finhabits support team and they’ll guide you. Call 1-800-492-1175 or send an email to support@finhabits.com.
If you’ve scrolled this far, it’s because you care about your future