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Unpacking Robinhood’s IRA Match: Is It a Good Deal?

Robinhood IRA 3 Percent Match
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Robinhood offers two tiers of IRA contribution matching:

  • Standard Robinhood members get a 1% match.
  • Robinhood Gold members get a 3% match. (Robinhood Gold costs $5 per month.)

Additionally, Robinhood Gold members can earn a 3% match on:

  • IRA transfers.
  • 401(k) rollovers.

There’s no cap on the amount you can earn, but the transfer and rollover matches are limited-time promotions that are scheduled to end on April 30, 2024.

Rules and considerations:

  • You must keep the matched contributions in your IRA for five years.
  • Robinhood Gold members must stay subscribed for one year after earning a 3% match to keep the total amount.
  • After April 30th, 2024, the match for transfers and rollovers will go down to 1%.

The match is classified as interest income, so it doesn’t count towards your annual contribution limit. 

How Does The Robinhood IRA Match Work?

The Robinhood IRA match is similar to a transfer bonus. It rewards account holders who consolidate their retirement funds into a Robinhood IRA.

If you contribute $6,500 to your IRA (Roth or traditional), the maximum you can earn is $65, or $195 with a Robinhood Gold subscription. 

Where this differs from your typical transfer bonus is that you continue to get this match on all contributions in ensuing years. This can easily make up for the $5 per month fee Robinhood charges for Gold membership. 

Where it gets more interesting is the fact that Robinhood is offering a limited-time match on IRA transfers and rollovers. So if you have a nice-sized retirement fund, this 3% match with the Gold account can quickly add up.

One-Time Bonus Amount
Transfer SizeFreeGold
$10,000$100$300
$50,000$500$1,500
$100,000$1,000$3,000
$250,000$2,500$7,500
$1 million$10,000$30,000

Compared to other brokerage transfer bonuses, this is one of the best offers available!

At the same time, one thing that stands out compared to other brokerage promotions is that you must keep the money in the account for five years or else you’ll forfeit the bonus.

Is The Robinhood IRA Worth It?

Seeing that this is a five-year commitment, it’s important to determine whether Robinhood is the best place to park your retirement funds. 

A few things to know about the Robinhood IRA are:

  • You can have both a Roth account and a traditional account.
  • While Robinhood doesn’t offer mutual funds of its own, you’ll have access to a wide range of ETFs.
  • You can’t trade crypto or options within your Robinhood IRA. 

While Robinhood does have a free option, it’s worth paying $5 per month for a Gold account if you plan on maxing out your annual contributions.

Since you earn a 3% match bonus on new contributions, the break-even point for coming out ahead with the Gold account is $3,000 annually. Contributing less than $3,000 annually, it’s better just to take the 1% match offered by the free account. 

While Robinhood is known for its free trading, it’s essential to separate the idea of trading individual stocks for profit and investing for retirement.

Having a large portion of your money in individual stocks risks your retirement account. The Robinhood IRA is therefore best for those who want access to low-cost ETFs that put them on a path toward their retirement goals. 

Final Verdict

The Robinhood IRA with a 3% match on annual contributions for Gold members, and the flexibility to include transfers and 401(k) rollovers, is an excellent offer right now.

But it’s not without its drawbacks. The five-year commitment is longer than most brokerage accounts. Plus, you’ll need to factor in the cost of a Gold subscription ($5 per month).

Of course, without access to done-for-you investment options (like what’s offered by robo-advisors), you’ll want to make sure you understand how to allocate and, if necessary, rebalance your retirement portfolio.

R.J. Weiss
R.J. Weiss, founder of The Ways To Wealth, has been a CERTIFIED FINANCIAL PLANNER™ since 2010. Holding a B.A. in finance and having completed the CFP® certification curriculum at The American College, R.J. combines formal education with a deep commitment to providing unbiased financial insights. Recognized as a trusted authority in the financial realm, his expertise is highlighted in major publications like Business Insider, New York Times, and Forbes.

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