Online brokerages are so eager for your business that some are now offering matching funds on IRA contributions — on any amount that you bring to a new account. Whether you’re depositing new money or transferring your IRA to a new brokerage, you can score an attractive cash bonus.
Here are the best brokers for IRA matching funds and key things you need to know.
IRA matching funds: Key things to know
Brokers are on the hunt for clients who can bring some cash to their IRA accounts, and they’re offering attractive bonuses, regardless of how much you bring over. Brokers regularly offer cash bonuses for opening a regular account, and the best brokerage account bonuses pay out thousands of dollars. The catch: You may need to deposit $20,000 to get even the broker’s lowest bonus.
The situation is somewhat different with IRA bonuses, however. Brokers are offering cash if you bring over any amount to an IRA. Typically, they may match 1 to 3 percent of whatever you deposit, and sometimes they may not have a limit on what you can get a match on.
That setup can be great for smaller investors and larger ones, too, since you won’t need a large account to get the bonus. Whether you’re opening a $5,000 account or a $500,000 one, you’ll get it.
If you’re looking to take maximum advantage here, there are a few different things to know. In a given year, your IRA contributions are capped, and for 2024 and 2025, this cap sits at $7,000. Those age 50 and older can add on a $1,000 catch-up contribution annually.
However, you can transfer an existing IRA and capture that bonus at a new brokerage, too. Finally, if you have a 401(k) retirement plan, you can roll over that money to an IRA and snag the bonus.
If there’s a drawback here, it’s that you may need to keep the IRA bonus in your account for years to avoid a clawback. The bonus cash does not count toward your annual contributions, so don’t worry about running over the cap if you make the max contribution. Brokers may have other fine print on their offers, including minimum holding periods or specific further requirements, so it’s important to read each broker’s conditions carefully.
Of course, you’ll still want to compare these offers with the best brokerage accounts bonuses to see which offer works best for your needs.
Best brokers for IRA matching
Robinhood
Robinhood offers a 1 percent IRA match for anyone but ups the game with those who are members of its Gold program, with a full 3 percent on your contribution. The fine print is key here: For the higher bonus tier, you’ll need to be a Gold member for at least a year after you receive the bonus. That higher match applies only to your annual contributions, and you’ll be able to receive only a 1 percent bonus on transferred IRA or 401(k) rollovers.
However, Robinhood does not cap the amount that you can earn under this program. You’ll want to see whether the extra bonus is worth the cost of Gold, which runs $50 annually. But the program does get you a competitive interest rate on cash, research and some other perks.
SoFi Invest
SoFi Invest offers a 1 percent match as standard on all annual contributions and 401(k) rollovers, giving you plenty of reason to check for any outstanding retirement accounts you may have forgotten about. SoFi doesn’t set a maximum on what you can earn from a 401(k) rollover, but it does set a minimum to get the 401(k) rollover bonus: $20,000. You’ll need to use a special link on SoFi’s site to get the deal.
It’s worth noting that SoFi does not offer the match for IRA transfers, and annual IRA cash contributions have to be made via an ACH transfer. You can use SoFi’s self-directed brokerage or its robo-advisor, SoFi Automated Investing, for the match. The money must be held in the account for at least two years, or it may be clawed back. In the past, SoFi has offered a 2 percent match, so it may be worth waiting to see if they do again.
Acorns
Financial app Acorns has also gotten into the match game and offers 1 percent or 3 percent — but only on your annual contribution, not transfers or 401(k) rollovers. To get the 1 percent match, you’ll need to be a subscriber to the app’s silver service tier, which costs $6 per month. A 3 percent match comes with the gold tier, which costs $12 per month. You’ll need to do the math to see whether the offers make sense for your situation, but if you’re subscribing to Acorns anyway, it’s all bonus cash anyway.
Acorns plans offer a professionally managed investment portfolio, as well as bank accounts with competitive rates, fee-free ATMs and more.
Bottom line
An IRA match can offer you a little extra juice on contributions, IRA transfers or 401(k) rollovers, but it’s worth repeating: You must read each broker’s rules. The broker’s fine print tells you exactly the conditions you need to meet to get and keep the cash bonus, including rules on how long the money must be held in the account, how much can be withdrawn and other stipulations.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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