Fidelity Investments blog

How to start investing with fractional shares | Plynk

Admin — Mon, 09 Mar 2026 04:00:00 GMT

You don’t need to invest hundreds of dollars to own a slice of your favorite company.

Until recently, the only way you could invest in a stock was if you had enough cash to buy an entire share of stock and pay transaction fees. With the Plynk app, you can invest in a stock or fund with as little as $1 by buying a "fractional share."

Fractional share investing

With fractional share trading, you can buy a small slice of a company’s stock, rather than buying a whole share. That can make it easier to start investing since the stock for some companies can trade for hundreds or even thousands of dollars per share.

Imagine a company whose stock costs $50 per share. With fractional share trading, you can still invest in that company without spending the full $50—even if you invest $1 or $5, you still own a piece. Over time, as you have more cash available you can buy additional stock to build your investment portfolio even more.

Other ways buying fractional shares of stock can help you start investing

Beyond being able to purchase stock for as little as $1, there are also other reasons buying fractional shares may be convenient.

Fractional shares let you invest a specific dollar amount instead of purchasing a certain number of shares. For example, let’s say you have $60 to invest and the stock price for that company that interests you is $50. In the past you could buy one share and have $10 left over, but with fractional shares you can simply buy $60 worth.

Additionally, fractional shares allow you to diversify your portfolio (spread your investments around to reduce risk) without having to put a lot of money into it. If you’d like to own stock in a variety of companies, you no longer need hundreds or thousands of dollars to do it—you can use that $60 to buy fractional shares of several different companies.

Compound growth: Make your money work for you | Plynk

Admin — Sun, 08 Mar 2026 05:00:00 GMT

Take advantage of compound growth by investing your money in the stock market.

When you invest in stocks and funds your money has the potential to grow over time, thanks to the impact of compound growth.

What’s compound growth?

Compound growth is the idea that when your money grows, the new money that you’ve made will also grow if you keep it invested.

How does compound growth work?

Let’s step through an example. If you have $100 invested and it grows by 7% over a year, at the end of the year you have $107—that's a growth of $7! Now say the next year your $107 grows at the same rate of 7%. At the end of the year, you have $114.49—your investment has grown by even more, $7.49 that year.

This increase may become really powerful over the long term. If that $100 grows by 7% for 20 years, in that 20th year it will have grown by nearly $287, for a total of $386.97!

Of course, 7% growth is a hypothetical example, as every year in the market is different. In some years it's higher, and in other years it's lower.

But the point is simple: To grow your money and potentially build some wealth, consider investing in stocks or funds that offer higher potential returns. Yes, alongside higher potential returns also comes a higher risk of investment loss, but if you can keep your money invested for the long haul, it may pay off with the help of compound growth.

Risk tolerance & time horizon: Investing for your goals | Plynk

Admin — Fri, 06 Mar 2026 05:00:00 GMT

Knowing what you’re investing for is the first step. What’s next? Understanding your time horizon and comfort with risk.

Do you have a specific goal in mind for the money you invest? Like a down payment for a house, or a big vacation? Maybe it’s a child’s college fund, or your own retirement?

Knowing what you’re working toward may help you determine 2 critical things that can drive your investing decisions: time horizon and your comfort with risk.

Time horizon

Your time horizon is the length of time you plan to keep your money invested. To figure out your time horizon, ask yourself: "When will I need my money?" and "Is that date flexible in case the market is in the middle of a major downturn?"

Generally, the longer your time horizon, the more time your investments have to reap potential benefits from compound growth, and the more risk you may be able to take.

Comfort with risk (aka “risk tolerance”)

Your risk tolerance is essentially your comfort level with risk. Are you someone who would lose sleep over a dip in your account balance, or are you willing to put it all on the line for big potential rewards? Maybe you fall somewhere in the middle!

There’s no right or wrong answer and your risk tolerance may change throughout your life.

But here’s something to consider: As we noted before, the longer your time horizon (aka the longer you plan to keep your money invested), the more risk you’re likely able to take with your investments because they have time to bounce back after a drop.

So if you’re investing for a goal that’s many years down the line, it could actually make more sense to have a higher risk tolerance (if you’re comfortable with it).

Choosing investments

You can manage certain risks in your portfolio by choosing different types of investments.

Higher risk investments tend to be individual stocks and funds that are concentrated in one area—like a specific industry, theme, or strategy.

Lower risk investments tend to be funds with more diversification—spread out across stocks, bonds, and cash, that aren't concentrated in one industry or theme.

Pulling it all together

The investments you'd choose for a goal that’s 5 years away are likely different from the ones you’d choose for a goal that’s 20 years away—because your time horizon and risk tolerance are different.

Here’s an example: Let’s say you’re investing for a splurge vacation that you hope to take in 5 years. You probably don’t want to take as much risk as you would if you were investing for a goal 20 years away, because your investments have less time to bounce back after a drop in the market.

So instead of investing in individual stocks (higher risk), you might consider investing in funds that spread your money across many investments at once (lower risk).

What is diversification in investing? | Plynk

Admin — Thu, 05 Mar 2026 05:00:00 GMT

Spreading out your money across different investments can help you reduce risk.

You’re likely familiar with the expression “don’t put all your eggs in one basket.” This saying sums up why it makes sense to “diversify” your investments.

What is diversification?

Diversification means that you spread your money across a variety of different investments. For example, rather than putting all your savings into a single stock you invest in a mix of stocks and funds.

Why is diversification so important?

If all your money is invested in a single stock and that stock's value declines, the entire value of your account (the money you invested) declines. But if you spread your money across different stocks and other types of investments, this decreases your risk. When one investment declines in value, another may rise. So, diversification helps reduce the impact that a single investment can have on the overall value of your account.

Diversification examples

Here are some basic steps you can take to diversify your investments beyond a single stock:

Multiple stocks
A fund
Multiple stocks and funds
Multiple stocks and funds spanning different regions or industries

The more you diversify, the more you can reduce your level of risk.

Next steps to consider

Visit the Discover page in the Plynk app to browse a wide variety of investment options.

What are dividends in investing? | Plynk

Admin — Wed, 18 Feb 2026 06:00:00 GMT

Generate income with your investments without having to sell.

Below we discuss what dividends are, where they come from, and how you can find out if a stock pays them or not.

Dividends explained

A dividend is a sum of money paid by a company to its stockholders (typically quarterly) to share its profits. Dividends are a way you can receive income from your investments without having to sell them.

Who pays dividends?

Some stocks pay dividends and some don’t. A company’s board of directors can choose to issue dividends over various time frames and with different payout rates. Larger, more established companies with more predictable profits are more likely to pay dividends.

Why do companies pay dividends?

When a company has historically paid a regular dividend (or an increasing dividend), it can reflect positively on the company and help to maintain investors’ trust. Dividends are often preferred by income-oriented shareholders because they are treated far better than capital gains (profit from selling investments) when it comes to taxes.

Funds can pay dividends too

If you’re looking for dividends, individual stocks aren’t your only option. When you invest in a fund that contains dividend-paying stocks or bonds, the companies will pay the dividends to the fund and they will then be passed on to you through a dividend distribution.

Reinvesting your dividends

When you’re paid dividends you have 2 options: keep them as income or reinvest them to buy more of the same stock/fund. Many stocks/funds have plans that allow you to buy more shares by automatically reinvesting dividends. This can be an easy way to boost your invested amount without having to spend money out of pocket!

Go to your Profile page in the Plynk app to choose your dividend reinvestment preferences (DRIP).

How to find out if a stock pays dividends

When viewing a specific stock in the Plynk app, scroll down to the Stats section. You’ll see the term Dividend Yield, followed by a percentage (or N/A if the stock doesn’t pay dividends). This number is the percentage of the company’s stock price it has paid out each year in dividends.

Next steps to consider

Visit the app’s Discover page and check out the Dividend Stocks category to see a list of available stocks filtered by highest dividend yield. This is one of many characteristics to think about as you research investment ideas.

Or, simply browse stocks that may interest you and find out if they pay dividends.

What does it mean to reinvest dividends? | Dividend yield | Plynk

Admin — Wed, 18 Feb 2026 05:30:00 GMT

We explain dividend yield and dividend reinvestment, plus how you can use the Plynk app to find stocks that pay dividends.

Dividends are payments made by companies (often quarterly) to their stockholders to share a portion of the profits. They are a way you can receive income from investments without selling.

Some stocks pay dividends and some don’t, and the amount they pay varies. Dividend yield is a commonly used metric for comparing stocks’ dividends.

Dividend yield meaning

Dividend yield is the percentage of a stock’s price that the company pays its shareholders annually in dividends. It’s calculated by dividing the amount of money the company pays per share (the dividend) by the current share price.

Dividend yield examples

Imagine a company’s stock price is $50 per share. If it pays a yearly dividend of $2 per share, the dividend yield would be 4%. Or, if it pays a dividend of 50 cents per share, the dividend yield would be 1%.

View stocks by highest dividend yield in the Plynk app

When you visit the Plynk app’s Discover page, you’ll see a category called “Dividend Stocks.” Tapping on the bubble brings you to a list of stocks sorted by highest dividend yield. This is one of many characteristics for you to consider as you research investment ideas, along with things like risk level, expert rating, and historical performance.

Dividend reinvestment

Dividend reinvestment means that if you own a stock or fund that pays dividends, when you receive your dividend payments you use them to buy more of that same stock or fund.

How does dividend reinvestment work?

Let’s say you own $100 worth of stock in a company that has a dividend yield of 4%. If you earn $1 for your first-quarter dividend payment, that $1 could be reinvested to increase your total amount to $101.

Should I reinvest dividends?

If you’re planning for the future and don’t need the money right away, reinvesting your dividends is one way to help grow your invested amount over time. It also offers the potential for your investments to take advantage of compound growth.

On the other hand, if you need the money now or want to further diversify your portfolio by investing your dividends in something else, dividend reinvestment may not be the right choice for you.

Go to your Profile page in the Plynk app to choose your dividend reinvestment preferences (DRIP).

Next steps to consider

Make a deposit or set up recurring deposits to your brokerage account in the Plynk app. Then go to the Discover page to browse stocks you might be interested in that pay dividends. When viewing a specific stock in the Plynk app, in the Stats section you’ll see its dividend yield (or N/A if the stock doesn’t pay dividends).

Investor’s guide to retirement planning with IRAs | Plynk

Admin — Thu, 05 Feb 2026 06:00:00 GMT

How IRAs can help you work towards your retirement goals.

Retirement might feel far away, but planning for it early on and understanding your options can make a big difference in being able to achieve the lifestyle you want to lead. Here are some basics to help get you going and make more informed choices.

Why invest for retirement?

The government offers Social Security retirement benefits that provide monthly income based on your work history and earnings. While it may help, most retirees find it’s not enough to support themselves and live the way they’d like to.

That’s why saving money for retirement is so important. And by investing what you set aside, you give that money more potential to grow over time and increase your financial security when you stop working.

Starting early and the power of compound growth

The earlier you begin investing for retirement, the better. Why? Because of compound growth--the idea that when your money grows, the new money you’ve made can also grow. This snowball effect means the longer it’s invested, the faster it can grow.

Although investing and compounding may help you grow your money, please remember that investing involves risk. You could lose money, investment returns are likely to fluctuate, and investing on a regular basis does not ensure you’ll make more money. These examples are hypothetical and don’t reflect the performance of any specific investment. *This hypothetical example assumes the following: (1) a $1,000 contribution is made on January 1 and every year from age 25 to 65 and age 35-65, respectively. (2) an annual rate of return of 7%, and (3) the ending values do not reflect taxes, fees, or inflation. If they did, amounts would be lower. Illustrations with a 7% rate of return also come with risk of loss. **This hypothetical example assumes the following: (1) a $1,000 contribution is made on January 1 and every year from age 35 to age 65, (2) an annual rate of return of 7%, and (3) the ending values do not reflect taxes, fees, or inflation. If they did, amounts would be lower.

Check out this hypothetical example which shows the difference even a decade can make. Investor A starts at age 25 and invests $1,000 per year for 40 years until age 65. Investor B does the same thing, but begins 10 years later and invests for 30 years instead of 40. If both their investments grow an average of 7% per year, at age 65 Investor A has more than double the amount of money.

For Investor B to reach that same total after starting 10 years later, they’d have to invest more than twice as much each year.

401(k) vs IRA: What’s the difference?

Two of the most common retirement accounts are 401(k)s and IRAs. They both offer tax advantages that can help you save more money for when you retire. In many cases people may have more than one.

401(k): Offered through employers. You can contribute pre-tax dollars (meaning you don’t pay income taxes now on the money you contribute), and many employers have programs where they also match a portion of your contributions. Yearly contribution limits (the amount you can put away) are higher than IRAs, but your investment options are often limited by what’s available in your employer’s plan.
IRA (individual retirement account): Opened on your own through a financial institution or investing app like Plynk. IRAs give you flexibility to choose a greater variety of investments and are worth considering if you don’t have a 401(k) or want to save more beyond your employer plan.

Traditional IRA vs Roth IRA

Traditional and Roth are two basic types of IRAs. The biggest difference between the two is whether you save money on taxes now or later.

Traditional IRA: Contributions can be tax-deductible now (made with pre-tax dollars) if you don’t have a 401(k) through your employer, but your withdrawals are taxed in retirement.
Roth IRA: Contributions are taxed now (made with after-tax dollars), but in retirement you can withdraw your earnings tax free. Roth IRAs also offer additional financial flexibility because you can withdraw your contributions at any time with no penalty.

When choosing between a traditional or Roth IRA, something to consider is whether you expect to be in a higher or lower tax bracket when you retire. That can help you decide if you’d rather save on taxes now or in the future.

IRAs and your retirement goals

Retirement planning doesn’t have to be intimidating. Putting money in an IRA can be a simple way to get started and has the potential to be a powerful tool for long-term savings and investing. IRAs offer tax benefits, flexibility, and a wide range of investment choices. By contributing regularly and starting early, you can take advantage of compound growth and build towards a comfortable retirement.

Explore IRAs in the Plynk app

IRA questions and answers, FAQs | Plynk

Admin — Thu, 05 Feb 2026 05:45:00 GMT

We share 14 frequently asked IRA questions and answers.

If you’re thinking about putting money away for retirement, you may be wondering if an IRA is right for you. Below are answers to several common questions about IRAs to help you get started.

What is an IRA?

IRA stands for “individual retirement arrangements” or “individual retirement account.” An IRA is an investing account that you can open yourself to start setting aside money for retirement. Unlike brokerage accounts, IRAs have specific rules for contributions, withdrawals, and tax benefits intended to encourage long-term saving.

How is an IRA different from a 401(k)?

The key difference is that you can open an IRA with a financial institution yourself, while 401(k)s are generally offered through your employer. An IRA may allow you to have more investment options, but a 401(k) lets you contribute higher amounts of money each year.

Can I open an IRA even if I already have a 401(k)?

Yes, you can contribute earned income to both an IRA and a 401(k), but this may impact what type of IRA you choose.

What are the benefits of an IRA?

IRAs offer tax advantages that aren’t available with many other methods of investing. These advantages vary depending on which type of IRA you choose.

What’s the difference between a traditional IRA and a Roth IRA?

Income you contribute to a traditional IRA may be fully or partially tax-deductible (if you’re not covered by a workplace retirement savings plan or meet the income criteria), meaning you wouldn’t pay taxes on it now when you contribute. But, you do have to pay income taxes when you withdraw the money in retirement.

On the other hand, Roth IRA contributions are not tax-deductible now. However, you can withdraw the money tax-free in retirement and never have to pay any taxes on the growth of your investments if you meet basic qualifications (usually that you’ve had the account for 5+ years and are over 59½).

Who can open an IRA?

Anyone who earns taxable income is allowed to contribute to a traditional IRA. However, there are income limits to be eligible to contribute to a Roth IRA—for 2025 those limits range from $150,000 to $165,000 if you’re single, and from $236,000 to $246,000 if you’re married and filing jointly. For 2026 those ranges bump up to $153,000 to $168,000 and $242,000 to $252,000.

How much money can I contribute to an IRA each year?

You can contribute up to $7,000 total to IRA accounts for 2025. But if you’re at least 50 years old, that number increases to $8,000. For 2026 the numbers are $7,500 and $8,600.

Can I contribute to more than one IRA?

Yes, you can contribute to multiple IRAs in the same year, but the total amount can’t exceed the limits mentioned above.

When is the deadline to contribute to an IRA?

The deadline to contribute to an IRA for the prior year is on or around April 15, the same date that income taxes are due. This means that if you’d like to potentially make a tax-deductible contribution to an IRA for 2025, you have until Tax Day of 2026 to do it.

What happens if I contribute too much money to an IRA?

If you mistakenly put too much money into an IRA (or contribute if you’re not eligible) in a given year, you have until the tax filing deadline to remove your excess contributions and any investment earnings from them. If you don’t, you’ll pay a 6% penalty on that money each year until you take it out of the account.

You may also have the option to recharacterize contributions (for example, switch them to a traditional IRA if you're ineligible for a Roth), or potentially apply them to the following year.

What can I invest in with an IRA?

Once you’ve opened an IRA and started contributing, it’s important that you take the time to decide how you’d like to invest it. Some options include stocks, index funds, or other ETFs.

What if I need to take money out of my IRA before retirement age (59½)?

With a traditional IRA, if you withdraw any money before turning 59½ you are typically subject to a 10% early-withdrawal penalty,* as well as income taxes on your withdrawals.

With a Roth IRA, you’re allowed to withdraw money you contributed at any time with no tax or penalty. You can withdraw earnings tax-free and penalty-free once you turn 59½ (and in some other specific circumstances), as long as 5 years have passed since your first Roth IRA contribution. Otherwise, you may be subject to a 10% tax penalty for withdrawing earnings.

What happens to an IRA if the account holder passes away?

When you open an IRA you have the option to add beneficiaries—people who will inherit the account. If you pass away, beneficiaries can open what’s called an inherited IRA to take over the account. Inherited IRAs have different rules than standard traditional and Roth IRAs.

How much money do I need to invest in an IRA?

No matter how small the amount, putting money in an IRA may help you better prepare for the future. With the Plynk app, you can invest in an IRA with as little as $1.

Next step to consider

Check out IRAs in the Plynk app.

Traditional IRA vs Roth IRA: What’s the difference? | Plynk

Admin — Thu, 05 Feb 2026 05:30:00 GMT

Both can help you save on taxes when setting aside money for retirement, one now and the other later.

Traditional and Roth are two of the most popular types of IRAs. The biggest difference to consider between the two is whether you might want to take advantage of tax benefits now when you contribute, or later when you retire.

What’s an IRA?

Traditional and Roth IRA basics

With traditional IRAs, contributions may be tax-deductible now (meaning you don’t pay income tax on the money you contribute) but your withdrawals are taxed in retirement. On the other hand, with Roth IRAs contributions are taxed now but in retirement you can withdraw your earnings tax free.

Contributions to a traditional IRA may not be tax deductible if you have a workplace retirement account, and there are income limits to be eligible to contribute to a Roth IRA. Also, Roth IRAs are less of a commitment because you can withdraw the amount you’ve put into them at any time with no penalty.

The full breakdown

The chart below details the differences between traditional and Roth IRAs:

	Traditional IRA	Roth IRA
General
Main difference	Contributions may be tax deductible, reducing the income you're taxed on this year--taxes are differed until withdrawal	No tax benefits when you contribute, but withdraw money later tax-free (including no taxes on gains)
How it helps you save money	Allows you to direct pre-tax income toward investments than can grow tax-deferred	Allows you to direct post-tax income toward investments than can grow tax-free
When do you save money on taxes?	Now	Later
Compared to a brokerage account where you don't save now or later...	With a brokerage account you invest with after-tax dollars then also pay taxes on your gains
Who it may be right for	People who don’t have workplace retirement accounts or expect be in a lower tax bracket when they withdraw	People who may want to withdraw early or expect to be in a higher tax bracket when they withdraw later
Examples	Gig workers or people who are self employed (with no workplace retirement account), people in their peak earning years	Young people investing for long-term goals (for many potential goals, like a home, you can still withdraw with no penalties before retirement)
Putting money in (contributions)
2025 max contribution amount	$7,000 total for any IRAs (but if you're 50+ it's $8,000)
2025 contribution deadline	April 15, 2026 (Tax Day)
2026 max contribution amount & deadline	$7,500 total ($8,600 if you're 50+), Tax Day 2027
Pay income taxes when you contribute?	No - contributions may be tax deductible now, pay income taxes later when you withdraw	Yes - pay income taxes now on contributions, may withdraw later tax-free with no taxes on earnings
Eligibility to contribute for 2025	Anyone can contribute, but to fully deduct it from your taxes you must either A) not have access to a workplace retirement savings program, or B) earn less than $79K if you're single, or less than $126K if you're married and filing jointly	To fully contribute your income must be less than $150K if you're single, or $236K if you're married and filing jointly
Eligibility to contribute for 2026	For option B) earn less than $81K if you're single, or less than $129K if you're married and filing jointly	To fully contribute your income must be less than $153K if you're single, or $242K if you're married and filing jointly
Taking money out (distributions)
Before age 59½	10% penalty and income taxes on all money you withdraw	No taxes or penalties for withdrawing money you contributed, 10% penalty for withdrawing earnings
Exceptions to before age 59½	May avoid penalties if withdrawals are used for first-time home purchase, birth or adoption, education, medical expenses
After age 59½	Pay income taxes on withdrawals	Withdraw contributions and earnings (if you've had the account 5+ years) with no taxes or penalties
Required minimum distributions (RMDs)	Must begin withdrawing after turning 73	None, can pass on to your heirs

Key considerations

When choosing between a traditional or Roth IRA, it’s worth thinking about whether you expect to be in a higher or lower tax bracket when you retire. That can help you determine if you’d rather save money on taxes now or in the future.

And once you open an IRA, don’t forget to invest it.

Explore IRAs in the Plynk app

Roth IRA pros and cons | Plynk

Admin — Thu, 05 Feb 2026 05:00:00 GMT

We explain how IRAs work and discuss some of the benefits of a Roth IRA.

Key takeaways

Traditional IRAs provide you with tax advantages now when saving for retirement, Roth IRAs give you advantages later.
Roth IRAs offer the potential for your investments to grow tax-free.
You can withdraw your contributions to a Roth IRA at any time with no penalties.

What is an IRA?

IRA stands for “individual retirement account,” meaning it’s an investing account you can open yourself (as opposed to something like a 401k that might be offered through your employer) to start setting aside money for retirement. IRAs offer tax advantages that you won’t find with other methods of saving and investing.

Learn more: Common IRA questions and answers

IRA basics

Two of the most popular types of IRAs are traditional IRAs and Roth IRAs. When you put money in a traditional IRA it’s generally tax-deductible—meaning you don’t have to pay any taxes right now on the money you contribute (instead you do it later when you withdraw the money in retirement). When you contribute to a Roth IRA it’s not tax-deductible, but you can withdraw it tax-free when you retire.

Example: If you make $50,000 this year and put $5,000 in a traditional IRA, you pay taxes on an income of $45,000. But if you contribute $5,000 to a Roth IRA, you still pay taxes this year on an income of $50,000.

Pay taxes now or later?

At the highest level, the big difference between these two kinds of IRAs is whether you pay taxes on your contributions now (Roth) or when you retire (traditional). So, why would you want to pay taxes now on the money you’re saving for retirement?

One thing to consider is what your tax rate is currently compared to what it may be when you retire.

Example: Someone early in their career might expect to be in a higher tax bracket when they retire, so it could be beneficial in the long run to pay taxes on their IRA contributions now at a lower rate.

Advantages of a Roth IRA

Beyond possibly taking advantage of a lower tax rate, there are some other very appealing potential benefits of putting money in a Roth IRA.

Tax-free growth: Since the money you contribute to a Roth IRA has already been taxed, you don’t need to pay any taxes when you withdraw it. This also applies to any additional earnings it may make, which could be a substantial amount of tax-free income for you in the long run.

Example: Let’s say you contribute $5,000 this year to a Roth IRA. If in 20 years that $5,000 grows to $15,000, the additional $10,000 is money you don’t have to pay taxes on.

No penalty for early withdrawals of contributions: A Roth IRA also allows you to withdraw the money you’ve contributed at any point with no penalty (there are rules about withdrawing earnings though). So in the example above, if you need that $5,000 before retirement you can take it out whenever you like.

Roth IRA pros and cons

To summarize, here are a few basic pros and cons of a Roth IRA compared to a traditional IRA.

Pros

Potential to invest and make money tax-free: With a traditional IRA you have to pay taxes on your earnings when you withdraw the money in retirement, but with a Roth IRA you don’t.

Flexibility: A Roth IRA lets you withdraw your contributions at any time with no consequences, but with a traditional IRA there may be added tax penalties for taking your money out before you’re 59½ years old.

Cons

Less money in your pocket today: Since you pay income taxes on what you contribute to a Roth IRA, you’ll have less money available right now than if you contributed the same amount to a traditional IRA.

Income can be too high for a Roth IRA: If you make over a certain amount of money, you may not be allowed to contribute to a Roth IRA. There are no income limits for a traditional IRA (although there are for it to be tax-deductible, these amounts are subject to annual cost-of-living adjustments).

Next steps to consider

Read more about IRAs and check out this chart detailing the differences between traditional IRAs and Roth IRAs.

Explore IRAs in the Plynk app.