Robinhood Retirement | Get 3% extra, the biggest IRA match around (2024)

FAQs

Robinhood Retirement | Get 3% extra, the biggest IRA match around? ›

This 3% match on rollovers and transfers is a limited-time offer that expires April 30, 2024, after which you'll only get a 1% match. Robinhood Gold subscribers will continue to get a 3% match on new, qualifying contributions to their Robinhood IRA.

What's the IRA match? The IRA match is an extra 3% match on annual contributions with Robinhood Gold or 1% without. All IRA transfers and old 401(k) rollovers earn 1%. And for a limited time, Gold members can get a 3% match on all IRA transfers and old 401(k) rollovers.

A 1% match is smaller than some employer 401(k) contributions, but it's exactly 1% better than nothing. Robinhood is one of the best investment apps for beginners, but experienced investors may want to explore other options. Regardless, adding a 1% match fires an arrow into the heart of brokerage offerings.

SIMPLE IRA contribution limits for 2024

Provide matching contributions up to 3% of the employee's pay, not limited by any annual compensation limit. Make nonelective contributions equal to 2% of the employee's compensation based on a maximum salary of $345,000 in 2024.

The 3% Retirement Robinhood Gold Account Bonus applies to all eligible transfers through April 30, 2024. There is no cap on the amount of bonus you can earn. Members can claim the Robinhood Gold Sign-Up Bonus only once, the first time they sign up.

This match could be worth a lot of money if you max out your IRA account each year. The math: To cover the cost of a monthly Robinhood Gold subscription with 3% match, you'd need to deposit $2,000 into your IRA in 2024. By maxing out a $7,000 IRA, you'd earn $210 total.

Robinhood Gold membership benefits

Gold members also receive a 3% match on eligible contributions to a Robinhood IRA. If you can take advantage of these perks, the Gold subscription fee may be worth it, and the benefits you receive from a Robinhood Gold Card are icing on the cake.

(SIPC). This means that any loss of an investor's securities (e.g., stocks and bonds) and cash held by Robinhood is protected up to $500,000 in the event the firm fails or goes out of business.

Deciding between Fidelity vs. Robinhood isn't an easy choice as both have a lot to offer. Those who want no-fee options contracts, cryptocurrency trading, or an IRA match may prefer Robinhood. Fidelity could be a better fit for retirement investors or those looking for mutual funds.

Robinhood provides a bare-bones trading experience, making it a poor choice for investors seeking the best trading platform. Also, Robinhood's stock research tools are lacking when compared to $0 commission brokers such as E*TRADE, Charles Schwab, and Fidelity.

What is the maximum IRA match? ›

The IRA contribution limits for 2023 are $6,500 for those under age 50 and $7,500 for those 50 and older. For 2024, the IRA contribution limits are $7,000 for those under age 50 and $8,000 for those age 50 or older.

The maximum matching contribution is always 3% of the employees' compensation for the entire calendar year. Matching contributions may be made on a per-pay-period basis, or by the due date of the employer's tax return (including extensions).

Required Minimum Distributions (RMDs) are minimum amounts that IRA and retirement plan account owners generally must withdraw annually starting with the year they reach age 72 (73 if you reach age 72 after Dec. 31, 2022).

And, those seeking a no-annual-fee card may be put off by the Robinhood Gold subscription cost. The card itself does not have an annual fee, but the subscription will run you $5 per month if you want to pay monthly or $50 per year if you commit to signing up for the annual option.

Robinhood Gold is a subscription offering premium services available for a monthly fee. You're paid interest by the program banks monthly, and you can keep track of how much interest you've earned in the app in Settings → Investing.

Robinhood Gold's 5.00% APY, under the Robinhood Brokerage Cash Sweep program, is competitive with some of the best high-yield savings accounts. Robinhood customers who don't subscribe to the Gold tier will earn 1.50% APY (5.00% APY for Gold customers), which is still more than triple the national average.

To suit your investing goals and needs, you can trade in a margin account or a cash account. There are some key differences between the two. Check out the table below to compare and see which is best for you.

All IRA transfers and 401(k) rollovers earn 1% with or without Robinhood Gold.

With a Level 2 designation, you can execute the options trades like: Long calls, Covered calls, and Long puts. With a Level 3 designation, you can execute all of the above trades, along with the whole collection of limited risk spreads like: Credit spreads, Debit spreads, Iron condors, and Iron butterflies.

Level 3 options trading is available in margin accounts, but not in cash accounts or Robinhood Retirement.