An IRA (individual retirement account) is a personal investment account the government created to help you save for retirement.

Do I want a traditional or Roth IRA?

The difference mainly comes down to how and when you’re taxed. A Roth IRA might be a good choice if you expect your future tax rate to be higher. This is especially true when you're early in your career and anticipate earning more in the future. Paying taxes on your Roth contributions now can help you avoid a larger tax bill during retirement. On the other hand, if you think your future taxes will be lower, a traditional IRA might be better. You also have an upfront tax deduction, which if you’re eligible, means more money to invest now.

What’s a Roth conversion?

There are income limits to restrict high earners from contributing to a Roth IRA. However, you can use a back door conversion to move your money into a Roth IRA. We can help you make this Roth conversion to take advantage of tax-free growth.

For just $4 a month or 0.25% annually, you get all the benefits of our automated technology: hands-off investing, expert-built portfolios, and guidance to help you grow your retirement.

A SEP IRA is a type of retirement plan for those who are self-employed or who are small business owners.

Am I eligible for an IRA?

There is no minimum age requirement to open either a traditional or Roth IRA, but you must have earned income. There are no income limits for a traditional IRA. However, when considering a Roth IRA, your income plays a role in determining your contribution eligibility. In 2024, single tax filers aiming to contribute to a Roth IRA must have a modified adjusted gross income below $146,000. If married and filing jointly, your joint modified adjusted gross income must be under $230,000 in 2024.

What's the contribution limit for an IRA?

In 2024, the annual contribution limit for both Roth and traditional IRAs is $7,000 for those under 50, and $8,000 for those 50 and above. You can still contribute to your 2024 traditional and Roth IRA up to $7,000 a year if you're under 50, or $8,000 if you're 50 or older until April 15, 2025.

Earn 1% match on your IRA

Make saving for retirement easy with an IRA. We’ll match 1% of your net Roth and traditional IRA contributions until December 30, 2024.

Conditions apply. See offer terms.
You must click below to be enrolled in this promotion.

NerdWallet is a promoter who is paid by Betterment. Due to compensation, they have an incentive to recommend Betterment, which is a conflict of interest. They are compensated up to $1,000 for each new client that signs up using the link provided by the Promoter and funds an account.

Special tax benefits.

IRAs offer tax breaks to let your money grow and compound faster than it would in a taxable account.
Automated technology.

We make investing easy by putting it on autopilot, handling all the trading, rebalancing, and dividend reinvesting.
Retirement tools.

We build you a personalized plan, calculate how much to save, and adjust as life changes.

How your IRA match works:

An IRA is one of the best ways to save for retirement—here’s how we can make it even better for you.

Sign up and open a new Roth or traditional IRA, no rollovers
Contribute to your IRA throughout 2024
Receive a 1% match on eligible contributions (up to the annual limit) at the end of the year!

Conditions apply. See offer terms and FAQs.

Get an exclusive 3% IRA match with Betterment Premium

Premium puts a team of CFP^® professionals in your corner offering personalized financial planning and allowing you access to exclusive perks like a .25% Cash Reserve preferred rate boost. For a limited time, you’ll also get a 3% IRA match as a Premium member.

See offer terms and FAQs. Premium requires a minimum of $100,000 in assets with Betterment to upgrade and maintain eligibility in the plan. Assets can be in your IRA, HSA and Investing accounts (Taxable and Crypto).

Traditional IRA

Get your tax break up front and pay no taxes until you withdraw.
Roth IRA

Money goes in already taxed so growth and withdrawals are tax-free.
SEP IRA

A traditional IRA for self-employed people and small-business owners.

Have an old 401(k) or IRA? We can help roll them over easily.

Moving your retirement accounts into a Betterment IRA allows you to manage your money in one place and can save you on high fees. If you’re looking to roll over at least $20k, you can talk with an advisor about it for free.

Learn more ➔

A hand pushing a coin to roll over to a small plant.

Betterment’s Licensed Concierge Team offers support for individuals transferring assets to Betterment of $20,000 or more, and receives incentive compensation based on assets brought to or invested with Betterment. Betterment’s revenue varies for different offerings (e.g., Betterment Digital and Premium, Cash Reserve) and consequently Team members have an incentive to recommend the offering which results in the greatest revenue for Betterment. The marketing and solicitation activities of these individuals are supervised by Betterment to ensure that these individuals act in the client’s best interest.

Lower fees today can mean more money tomorrow.

A 401(k) with even a modest fee may cost you tens of thousands of dollars over time. The savings from rolling into a managed Betterment IRA of low-cost exchange-traded funds (ETFs) can add up to a more comfortable retirement.

Get personalized advice  on your retirement.

We offer hands-on guidance from our team of experts to help bring clarity and confidence to your retirement.

0.65% annual fee. Minimum balance required.

Learn more ➔

Headshots of Corbin Blackwell, CFP®, Bryan Stiger, CFP®, Nick Holeman, CFP®, EA, M.S.B.A., Kyle McBrien, CFP®, and Sara Kalsman, CFP®.

IRAs come with questions. We’re here with answers.

The difference mainly comes down to how and when you’re taxed. A Roth IRA might be a good choice if you expect your future tax rate to be higher. This is especially true when you're early in your career and anticipate earning more in the future. Paying taxes on your Roth contributions now can help you avoid a larger tax bill during retirement.

On the other hand, if you think your future taxes will be lower, a traditional IRA might be better. You also have an upfront tax deduction, which if you’re eligible, means more money to invest now.
There is no minimum age requirement to open either a traditional or Roth IRA, but you must have earned income.

There are no income limits for a traditional IRA. However, when considering a Roth IRA, your income plays a role in determining your contribution eligibility.

In 2024, single tax filers aiming to contribute to a Roth IRA must have a modified adjusted gross income below $146,000.

If married and filing jointly, your joint modified adjusted gross income must be under $230,000 in 2024.

Earn 1% match on your IRA

Special tax benefits.

Automated technology.

Retirement tools.

How your IRA match works:

Get an exclusive 3% IRA match with Betterment Premium

Pick from our tax-advantaged IRAs to meet your financial situation.

Traditional IRA

Roth IRA

SEP IRA

Have an old 401(k) or IRA? We can help roll them over easily.

Lower fees today can mean more money tomorrow.

Get personalized advice  on your retirement.

IRAs come with questions. We’re here with answers.

Boost your retirement with an IRA.

Earn 1% match on your IRA

Special tax benefits.

Automated technology.

Retirement tools.

How your IRA match works:

Get an exclusive 3% IRA match with Betterment Premium

Pick from our tax-advantaged IRAs to meet your financial situation.

Traditional IRA

Roth IRA

SEP IRA

Have an old 401(k) or IRA? We can help roll them over easily.

Lower fees today can mean more money tomorrow.

Get personalized advice on your retirement.

IRAs come with questions. We’re here with answers.

Boost your retirement with an IRA.

Get personalized advice  on your retirement.