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.
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Get your tax benefits upfront
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Don’t pay income tax on the money you put in
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You pay income tax when you withdraw
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Best if you already have an emergency fund
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Get your tax benefit when at retirement
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Pay income tax in the money you put in
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No income taxes for withdrawals after age 59½
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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
Funded with
Contribution Limits
Withdrawal Age*
Income Limits (2023)**
Roth
IRA
After-tax dollars
$6,500 ($7,500 if age 50 or older)
Age 59½ and over
Modified AGI single $153,000/married $228,000
Traditional
IRA
Pre-tax dollars
$6,500 ($7,500 if age 50 or older)
Age 59½ and over
No income limits to participate
* 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!
Our services include:

Automated deposits
Finhabits lets you schedule weekly, biweekly, or monthly deposits. You can start with $10, $100, or $1,000. You decide!

Bilingual mobile app
Use Finhabits to monitor your investment accounts and manage your deposits and withdrawals.

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.

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.

Portfolio rebalancing
Finhabits rebalances your portfolio regularly to ensure an appropriate asset mix for your investments.
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Bilingual support
Our team is based in the U.S. and is ready to help you in both English and Spanish!