M1 Retirement / Roth IRA, Traditional and SEP Accounts

M1 Retirement review quick take: Invest for your future with an automated IRA with no management fees.

What are M1 Retirement IRAs?

M1 is an online brokerage for self-directed (DIY) investors who want more control over how their money is invested for retirement. With M1 Retirement, you can open a Roth IRA, traditional, and SEP to help fund your future.

M1 IRAs allow you to save and invest money for retirement with tax advantages. IRA stands for Individual Retirement Arrangement, a tax-advantaged account with annual contribution limits set by the IRS.

An IRA itself is not an investment. It’s a type of account that contains investments in the form of stocks, bonds, mutual funds, etc.

Why invest using an IRA account? Depending on the IRA, you can save taxes now with a deduction or save later with a tax-free withdrawal. You can also grow your investment account with income from interest, dividends, and capital gains. Learn more about IRAs and how they work.

Brokerage products and services are offered by M1 Finance LLC, an SEC-registered broker-dealer and member of FINRA and SIPC.

How M1 IRA Works

M1 Retirement Accounts combines a do-it-yourself online brokerage and a robo-advisor. It allows you to invest automatically and in any way you want without management fees.

M1 supports annual contributions, roll-over and direct roll-over of contributions, and transfers between trustees. Before making a contribution, you must open an IRA account.

M1 offers:

• Traditional IRA: Earnings can potentially grow tax-deferred until you withdraw them in retirement.
• Roth IRA: Make contributions using after-tax dollars and earnings grow tax-free.
• SEP IRA: A simplified Employee Pension (SEP) plan allows self-employed and business owners to contribute to their retirement savings.

An initial minimum deposit of $500 is required. Afterward, a deposit of $10 or more can be made.

M1 Portfolio, Pies, and Slices

With M1, you can build your portfolio made up of “Slices.” A “Slice” can be an individual stock or a Pie (a group of stocks or ETFs). Pies allow you to visually create a custom portfolio containing low-cost exchange-traded funds (ETFs), individual stocks, and fractional shares. You can also copy the expert Pies built by M1.

Key Features

M1 Retirement accounts take full advantage of the same robust features found in the traditional brokerage account.

• Account Minimum: $500 with the ability to set up an automatic deposit.
• Zero-commission: Zero commission for buying and selling stocks and ETFs.
• Customization: Choose the stocks, ETFs, and fractional shares to create your custom Pie, or start with one of the 80+ expert Pies.
• Automation: Set recurring contributions while keeping within the IRA limit.
• Rebalancing: you can actively rebalance your portfolio to remain within your asset allocation target. And with Dynamic Rebalancing, every new cash in your portfolio is balanced into underweight assets.

You can also do the following:

• Transfer an IRA: Transfer your existing IRA from another brokerage.
• Roll Over a 401(k): Submit a request to roll over your previous employer-sponsored plan (i.e., old 401k).

Need more guidance in bringing accounts to M1? You can schedule a call with the Client Success Team, who will walk you through the platform and show you how to transfer accounts.

Fees

• Management Fees: $0
• Commission Fees: $0
• Platform Fee: $0 (a $3 platform fee for taxable brokerage accounts under $10,000 does not apply if you have one IRA).

M1 charges a $100 IRA closing fee and a $100 withdrawal fee. If you decide to close and transfer your IRA away from M1, you’ll be assessed $200.

Pros and Cons

Pros

• No management fees
• Invest in stocks and ETFs
• Dynamic rebalancing

Cons

• No tax strategy or tax-loss harvesting
• Limited guidance and advice

Who is it best for?

M1 Finance IRAs are best for self-directed investors or passive investors who want to automate retirement contributions.

M1 IRA Review

M1 IRA is a legitimate product offered by M1 Finance, LLC. It’s a good option for those looking for a hybrid brokerage account where they can choose their investments and also follow the robo-advisor’s recommendations.

In researching M1 IRA reviews, we learned that the app has over 61,000 reviews with a 4.7 out of 5-star rating in the App Store. However, it has a bad rating of 1.9 out of 5 on Trustpilot, with about 160 reviews, mostly from users upset with the lack of customer service support.

What we like about M1 IRAs is that you can create a diversified portfolio of stocks and ETFs similar to a taxable investing account. Whether you choose to create your own custom Pie or copy one of the expert Pies, the investing process is simple. You can make your initial investment into your retirement portfolio within minutes.

With M1, you will still do the heavy lifting, which is why you don’t pay management fees. However, if you need more guidance with your retirement investments, you’ll need to go elsewhere, such as a full-service firm or a robo-advisor.

How to Start an M1 Retirement Account

Minimum Requirements

Anyone with earned income is eligible to open and contribute to an IRA.

Step-by-Step to Open an M1 IRA

The time needed: 3 minutes.

1. Getting started
   Log in to your account or click on the link.
2. Apply for an IRA account
   Choose the type of IRA you’d like to open. Agree to the terms and conditions.
3. Submit your application
   It may take up to 2 business days to approve your application.

M1 IRA Alternatives

Alternatives to M1 IRAs include Webull IRA, Acorns Later, SoFi IRA, and Stash Retirement.

For robo-advisors, consider using Betterment or find more retirement accounts in the marketplace.