Investing in your future is always a smart decision, and with the Robinhood IRA Match, it's even smarter.
This innovative feature is an extra 1% that Robinhood kicks in for making eligible contributions.
Let's explore how the Robinhood IRA Match works and how you can take advantage of this valuable feature.
First, it's important to understand that the IRA Match is not counted toward your annual contribution limits.
Instead, it's an extra incentive to help you save more for your retirement.
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For 2022, the IRS has set the contribution limit at $6,000 if you're under age 50, and $7,000 if you're 50 or older.
This means that you can earn up to an extra $60 or $70 respectively on top of your contributions.
For 2023, the limits have increased to $6,500 and $7,500 respectively, allowing you to earn up to an extra $65 or $75.
To be eligible for the IRA Match, you can make new IRA contributions from any linked external bank account up to the annual IRA contribution limits set by the IRS.
However, contributions from your Robinhood brokerage or spending accounts don't qualify for the IRA Match.
Additionally, money deposited from IRA rollovers, transfers, or conversions isn't considered an annual contribution and therefore, isn't eligible for the IRA Match.
One of the best things about the IRA Match is that you can earn it on both prior-year and current-year contributions.
The only limit to earning the IRA Match is the IRS contribution limits, regardless of whether it's a current-year or prior-year contribution.
It's important to note that the Robinhood IRA Match and employer 401(k) match are not the same.
The IRA Match doesn't count toward your annual contribution limit, so you have more to invest.
Also, you don't have to work for Robinhood to earn an IRA Match.
In contrast, a 401(k) employer match is a contribution that an employer makes to an employee's retirement account.
If you withdraw money from your IRA before holding your eligible contributions for at least five years, and your remaining IRA balance stays at or above your contribution amount that earned the IRA Match, it's yours to keep.
However, if your remaining IRA balance is lower than your contribution amount that earned the IRA Match, Robinhood may charge an Early IRA Match Removal Fee equal to the IRA Match amount earned.
In conclusion, the Robinhood IRA Match is a valuable feature that offers you an extra 1% on eligible IRA contributions, without counting towards your annual contribution limit.
With this feature, you can boost your retirement savings and get closer to your financial goals.
This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.
