Robinhood 3% Rollover Match (expires 4/30/2024)

Post is not a guide, but some research and hopefully discussion on when this deal would make sense. https://robinhood.com/us/en/about/retirement/ Get the biggest IRA match on the market with Robinhood Gold Earn up to 3%* extra on every dollar you contribute to your IRA when you subscribe to Robinhood Gold. IRA transfers and 401(k) rollovers also earn 3% until April 30.
“The biggest IRA match” claim validated by Radius Global Market Research 👀 who evaluated self-directed retirement account offerings at major brokerage competitors Q1 2024. *3% match requires Robinhood Gold (subscription fee applies). Keep Gold for 1 year and the IRA for 5 years. Other terms apply.
Question What other IRA Matches did Radius Global Market Research review? Limitations and terms apply Gold Match Disclosure The 3% matching on contribution requires a subscription with Robinhood Gold (fees apply), must be subscribed to Gold for 1 year after your contribution to keep the full 3% match. You must have compensation (wage income) in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. For more information refer to the IRA Match FAQ 👀 . The 3% matching on transfers is subject to specific terms and conditions. Other fees may apply. See our Fee Schedule for more details. IRA match FAQ How long do IRA transfers and old 401(k) rollovers typically take to complete? For IRA transfers, after we receive an account transfer request, it typically takes 5-7 business days for the transfer to be completed in your Robinhood account. Check out Transfers FAQ for more info. For old 401(k) rollovers, this process can typically take 2-4 weeks for deposits to complete. [Corpse] 4 weeks would put the April 30th date within 1 week if going by settle date How is the IRA match calculated? "... For a limited time, Gold members can get an extra 3% match on all IRA transfers and old 401(k) rollovers. Check out Robinhood IRA Transfers Gold Match👀 for details. Robinhood IRA Transfers Gold Match Today, Robinhood Gold subscribers earn a 3% match on all eligible annual IRA contributions. For a limited time only, Robinhood Gold subscribers will also earn a 3% match on transfers and rollovers into your Robinhood Retirement account between January 17, 2024 and April 30, 2024, with no limit on the amount of match earned. After the transfers promotion ends on April 30, 2024, transfers and rollovers will earn 1% match, and IRA annual contributions will continue to earn a 3% match for Robinhood Gold subscribers. Keep in mind, you must hold the funds in your IRA for at least 5 years to keep the match, and be a Robinhood Gold subscriber for 1 year after the first deposit that earns the 3% match. How do I qualify? To receive the 3% transfer match: Your IRA or 401(k) transfer must settle into your Robinhood IRA during the promotion period of January 17, 2024 through April 30, 2024. You must be a Robinhood Gold subscriber when your IRA or old 401(k) transfer settles into your Robinhood IRA, and remain a Gold subscriber for at least 1 year from the date of your first 3% match deposit (either a transfer or contribution). In addition, you must keep your assets in your IRA for at least 5 years, otherwise you may be subject to an early match removal fee. Review IRA match FAQ for more details. The 3% match will only be granted on the net deposits in your IRA account.
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34 Replies
genetic-orange
genetic-orange4mo ago
Continued
genetic-orange
genetic-orange4mo ago
KEEP IN MIND Robinhood can currently only accept rollovers in cash. When will I get the match? We’ll deposit your earned match after the eligible contributions settle in your account. For transfers, you’ll get the match as soon as they settle. For rollovers, you’ll get the match upon settlement, which is typically within 5-7 business days of receipt. Any transfer fees? We don’t charge a fee to transfer assets in. However, your outside retirement account may charge you a transfer fee to transfer your assets. For any full or partial account transfer into Robinhood that's $7,500 or more, we’ll reimburse the transfer fees your other brokerage may charge, up to $75. Contact us to request a reimbursement. Taxes The IRA match is treated as interest income in your IRA. We won’t deliver a 1099-INT due to the tax status of IRAs. For more details, review IRA match FAQ. Terms and conditions Robinhood Gold IRA Deposits Match Terms & Conditions (PDF)
genetic-orange
genetic-orange4mo ago
Terms and conditions excerpts Limitations. If a customer has received a Robinhood Gold IRA Deposit Match, and they transfer or distribute for any reason some or all of their Robinhood IRA outside of the Robinhood IRA prior to the earn-out period of five (5) years from receiving their Robinhood Gold IRA Deposit Match in their Robinhood IRA, a non-taxable IRA Match Early Removal Fee will apply to the IRA as payment for services from Robinhood, separate from and above any ACATS out fee, and this IRA Match Early Removal Fee will be the amount that the customer has received via the Match for any Match received over the previous five years. Any distribution outside of the Robinhood IRA will potentially implicate the IRA Match Early Removal Fee, including distributions that may be required by law such as required minimum distributions. <- read this as "not for boomers" Robinhood Gold if a customer has received a Robinhood Gold IRA Deposit Match, a Gold Cancellation IRA Match Removal Fee, chargeable to the IRA that the customer contributed to, will apply to the customer’s IRA if the customer cancels or does not maintain an active Robinhood Gold subscription for at least one continuous year after the customer’s first eligible IRA deposit was initiated and completed that earned a Gold Deposit Match during the same uninterrupted period of maintaining active Robinhood Gold membership. Examples of a customer failing to maintain active Gold membership include, but are not limited to, failure to pay the monthly Gold subscription fee in the customer’s individual brokerage account, or the deactivation or restriction of the customer’s brokerage account. (what's a restriction?) In the event that a customer deposits to a Traditional IRA and subsequently converts to a Roth IRA, the Robinhood Gold Cancellation IRA Match Removal Fee would apply to the customer’s Traditional IRA. <- Read this as no RothIRA Ladder, would exclude older ppl who planned on this strategy since you'd move roughly $75k per year and would have to buffer for an additional 5 years to account for hold period.
genetic-orange
genetic-orange4mo ago
Interesting, there is no fee if your account accrues value enough to still be above your rollover + the 3% match.
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genetic-orange
genetic-orange4mo ago
As a Gold member, will I get the 3% match for contributions made before the increase? No, you won’t get the 3% IRA Match on contributions you made as a Gold member before it was launched. However, you'll still get the 1% match on eligible contributions.
genetic-orange
genetic-orange4mo ago
@Manatee Outlaw @workingthemarks @jack @James help me vet this potential opportunity. So far I've narrowed it down to: 1. People with significant 401k balances ready to rollover. 2. Don't need the money for at least 5 years. 3. Not for Boomers https://discord.com/channels/1181304501999784027/1221553545644605440/1221555540417712299 4. Not for People that have a 401k and need the 5 year lock up to execute their RothIRA Ladder https://discord.com/channels/1181304501999784027/1221553545644605440/1221556989205811230 What will Robinhood Competitors do? This post on Fidelity has the topic above. https://www.reddit.com/r/fidelityinvestments/comments/1ams83g/does_fidelity_offer_any_incentives_to_compete/
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genetic-orange
genetic-orange4mo ago
What's in it for Robinhood? I think the reason they are doing this are the following: 1. Buy market share. 2. Address reputation as brokerage for degenerates. 3. Receive a loan for 3% <-biggest risk if Robinhood goes under 4. They could be "shining the apple" in order to sell the company.
I agree, hence why I would advise against transferring in balances exceeding the SIPC limit of $500k. Below that amount, the risk of RH closing seems inconsequential (at least that's my impression after reading debates about this on the Bogleheads forum).
So far I agree with one of the comments from the reddit post I linked above.
genetic-orange
genetic-orange4mo ago
Best Wallet Hacks
Best IRA Rollover Bonus Promotions for 2024: Brokers Paying Bonuses...
If you are looking to rollover your 401k there are several IRA rollover promotions going on right now you could take advantage of. Here's how.
genetic-orange
genetic-orange4mo ago
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equal-aqua
equal-aqua4mo ago
Robinhood sells users’ data. It might be valuable for them to attempt to cast a larger net.
genetic-orange
genetic-orange4mo ago
payment for order flow is standard for discount brokerages. For example Tasty Trade (very reputable) does it.
conscious-sapphire
conscious-sapphire4mo ago
Wouldn’t this also expand their cash balance for things like margin accounts, loans, etc. Guess item 3 covers that I’d imagine retirement accounts have less trading and thus less data, but that may be my boglehead bias as retirement accounts are MANY people’s entire portfolio
genetic-orange
genetic-orange4mo ago
Found another match. Webull's offer already expired (1/31/24)
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conscious-sapphire
conscious-sapphire4mo ago
60k max with robinhood is only $1800. Would have to calculate the 5 year benefit to help with understanding the upside. Seems like another finance company incentivizing opening a savings account for “1k bonus on a 100k balance” Which means asking if the time is worth the effort and locked up money.
genetic-orange
genetic-orange4mo ago
I probably shouldn't have posted that part. The $60k max is from a $2M contribution. I'll delete that list since it's misleading. I wonder if Robinhood is doing this because of success(?) that WeBull had?
conscious-sapphire
conscious-sapphire4mo ago
My bearish attitude on this is: Effort involved (time and effort to rollover and do the paperwork) Having the money locked up Trust in robinhood
genetic-orange
genetic-orange4mo ago
removed comment since math made it more confusing since you'd only be receiving 3% as a one time deal vs completely paying off a mortgage.
equal-aqua
equal-aqua4mo ago
This contribution match doesn’t matter for us high earners. Maybe our wives and husbands can? 5 years is also a huge commitment time. Am I missing something here? 3% is about $180-190 dollars if you max out the Ira. The cost of the yearly contribution is $75. So this is net like… $105-115 a year to be locked in for 5 years?
genetic-orange
genetic-orange4mo ago
I agree that ongoing contributions of small amounts don't make much sense. I'm considering bigger numbers. For example, $100k would give you $3k in about 30 days that you can then invest. Another way to think about this is that if the whole thing takes a month of time of phone calls and emails of roughly 2 hrs per week (total 8 hrs). The match, if annualized, would be similar to picking up another J in terms of $/time. Using larger numbers. A rollover of $1M would give $30k for a month of light work. That would annualize to $360k contract. Best Case Scenario
IRA Match Early Removal Fee will be the amount that the customer has received via the Match for any Match received over the previous five years. The IRA Match Early Removal Fee will be calculated with respect to all of the customer’s Robinhood IRAs if the customer has multiple IRAs at Robinhood. Any distribution outside of the Robinhood IRA will potentially implicate the IRA Match Early Removal Fee, including distributions that may be required by law such as required minimum distributions. The IRA Match Early Removal Fee may not apply if a customer’s IRA balance has risen by an amount greater than their net IRA contributions plus any Match that they have received. However, the IRA Match Early Removal Fee will apply if the customer initiates a transfer or distribution request, and the customer’s IRA balance has decreased, for any reason including investment losses, to less than their IRA deposits plus any Match they have received.
Potential silverlining. Using an extreme example to illustrate. 1. You deposit $1M and receive $30k Match 2. Over 12 months the account grows 100% to $2M+$60k. 3. You transfer back $1M + $30k 4. Robinhood does not go bankrupt or change their T&C. In the above unlikely scenario, you would NOT pay an early removal fee. Nor would you pay to cancel the gold membership since the minimum required subscription time is 12 continuous months. Excerpt from the PDF T&C doc. The way I read the above is that you can basically skim any earnings and transfer back your retirement account to your preferred brokerage without incurring fees in limited situations.
correct-apricot
correct-apricot4mo ago
I have trust issues with robinhood not turning this off with no prior warning. That said, you could probably invest up to the FDIC insured limit.
genetic-orange
genetic-orange4mo ago
TBH, that's one of my bigger hurdles. I'm racking my brain trying to find reasons NOT to do this.
correct-apricot
correct-apricot4mo ago
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correct-apricot
correct-apricot4mo ago
Depends on how much you can trust this man.
genetic-orange
genetic-orange4mo ago
https://seekingalpha.com/article/4678541-robinhood-why-20-inflection-point This article discusses Robinhood in general and covers the 1% match in 2023 to the new 3% match in 2024. Their reasons to move this direction is to diversify their revenue streams from active trading into other services. Interestingly, they claim $2.25M limit on FDIC insured cash sweep paying 5% APY b/c they spread it out amongst 12 partner banks. This is higher than the SIPC limit of $500k referenced in some of the links in this post. Edit: The $500k SIPC limit referrs to securities held in the account. The $2.25M FDIC limit referrs to cash waiting to be invested. So I believe that the limit shouldn't be a problem for most people as long as they don't exclusively use Robinhood for everything.
equal-aqua
equal-aqua4mo ago
Doesn't it say up to 60,000 so at most we're talking about $1800 here
equal-aqua
equal-aqua4mo ago
OK so realistically, we’re saying if we have $2 million to invest we could transfer it over to Robinhood for an instant 3% growth, and then invest that for the next five years. The only thing that I can think about is whether or not you want to tie up your money with Robinhood for five years, especially something of that amount I wager that the answer is no. Specially when we’re dealing with that type of money.
genetic-orange
genetic-orange4mo ago
This is the crux of it, although, you can move the money back less the 3% match earlier. I think the main question is, how much is 3% worth for a month of light work? Answer is idk. Conclusion: Not moving forward with this deal. I was 60/40 going to proceed, but after yesterday's research and sleeping on it (as per custom), I'm now at 10/90. I do think it's worthwhile under certain circumstances. However, rewards do not outweigh the risks for my specific situation.
quickest-silver
quickest-silver4mo ago
Is there an asset amount where it makes sense? Would so-fi's match program be any better?
genetic-orange
genetic-orange4mo ago
I would do it if I was shopping brokerages because a free 3% is always appreciated. I would say no if rolling over $10k or less. Maybe if higher. Reason is that I would want the match to pay for all fees.
quickest-silver
quickest-silver4mo ago
Maybe i should just ask if you could elaborate on your conclusion? If I were to transfer say 500k (up to the SIPC security limit) and invest all in S&P500 for a 15k return seems like it would be worth it, no?
genetic-orange
genetic-orange4mo ago
Yes it would IMHO. I was originally going to do it. However, I decided against it due to non-financial reasons. Those reasons are that I'm working through some admin stuff and still have to send in taxes and have some travel planned, so I don't want to try to get this done in a rush.
genetic-orange
genetic-orange4mo ago
hmmmm
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