The new Robinhood Gold Card offers a 3% cash back on all purchases, making it one of the most valuable rewards credit cards available. In addition to this, Robinhood Gold members also receive a 3% match on all IRA contributions. For those who max out their IRA contributions, Robinhood provides an extra $240. Furthermore, Robinhood is currently offering a 3% match for those who transfer an IRA to Robinhood, with no limits on the amount matched. However, this offer is limited and expires on April 30th.
The 3% match works simply – as a Robinhood Gold member, transferring your IRA to Robinhood results in a 3% match from the company. This match does not seem to have any limits, meaning even those with large IRA balances can benefit. While some may question how Robinhood can afford such a match, many individuals have successfully transferred their IRAs and received the 3% match shortly after.
In order to be eligible for the 3% match, individuals must be Robinhood Gold members, which costs $50 annually. Additionally, a key requirement states that the IRA must remain with Robinhood for 5 years in order to keep the match. Taking out money or moving the IRA to another broker within this period will result in a clawback of the entire match. While market declines do not trigger a clawback, taking a distribution from the IRA may result in returning a portion of the match.
Initiating the transfer of an IRA to Robinhood is reported to be a seamless process, taking only a few taps on a smartphone. Despite the ease of transferring, some potential users have expressed concerns about Robinhood’s platform and investing strategies. While the 3% match may seem like a no-brainer, doubts about Robinhood’s offerings have led to mixed responses among potential users. However, one can still build a low-cost index ETF portfolio with Robinhood, utilizing ETFs from reputable companies like Vanguard, Schwab, and iShares.
Overall, the opportunity to receive a 3% match on IRA transfers to Robinhood provides potential benefits for investors looking to maximize their retirement savings. Despite some requirements and uncertainties regarding market fluctuations, the 3% match offer allows individuals to potentially increase their retirement funds over time. However, it is recommended to carefully review the terms and conditions of the offer and consider personal investment goals before making any decisions.
