Brokerage app Robinhood may be coming closer to launching retirement accounts, according to evidence found within the beta version of the iPhone app, Bloomberg reported Thursday (March 31).
This helps Robinhood go against traditional money managers and stock trading platforms. The company is now looking to add support for traditional individual retirement accounts (IRAs), Roth IRAs and pension accounts.
Underlying code in a beta version of the Robinhood app was updated to add some references to the retirement accounts. They came from developer Steve Moser, which were shared with Bloomberg, per the report.
The code reportedly shows that Robinhood would support rolling over IRAs and making contributions, along with working with inherited IRA accounts.
The move has helped the company toward competing more directly with traditional brokerages. Other money manages and brokerage platforms, like Fidelity Investments and Morgan Stanley’s E*Trade, have been offering the accounts for a while now.
Robinhood CEO Vlad Tenev has voiced support in the past for rolling out the retirement accounts, saying he planned for the option to be available by the middle of the year at the latest.
IRAs let users invest as much as $6,000 per year to save on taxes, and traditional IRA accounts usually come along with tax-deductible contributions that don’t get taxed until retirement.
PYMNTS recently wrote that Robinhood has also rolled out a new Cash Card to help new customers start investing. The card is offered by Robinhood Money and will give debit cards benefits and rewards that are usually reserved for credit card holdings.
“We’ve seen a new generation change their relationship with money, moving away from credit card debt, cash and making more digital transactions,” the company said at the time.
The announcement noted that only 17% of Generation Z said a credit card was their preferred way to make payments. Meanwhile, 46% of millennials and 47% of baby boomers said as much.