Robinhood Gold subscribers have the standard feature of a 3% match on all eligible annual IRA contributions. However, this bonus is somewhat limited as the annual IRA contribution limits are relatively low. 3% of $6,000 is $180, but Gold costs $60 a year. The primary benefit of Robinhood Gold is 5% interest on your cash sweep (otherwise it is only 1.5%). Here is their IRA match FAQ.
For a limited-time, Robinhood Gold has improved the offer to include a 3% match on IRA transfers and 401k/403b/457 account rollovers between January 17, 2024 and April 30, 2024, with no limit on the amount of match earned. You should open or have an open Traditional or Roth IRA (even if empty) with Robinhood and then transfer into the proper IRA container (pre-tax or Roth).
For folks with big IRAs or 401ks, this can be very significant bonus. A $100,000 IRA or 401k rollover would get you $3,000. $35,000 would get you over $1,000. $350,000 would get you over $10,000. Now that $60 a year for Robinhood Gold doesn’t seem as much of a hurdle!
The catch? You must keep the funds in your Robinhood 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. Details on the 3% limited-time offer here.
I’m certainly considering this offer, as I don’t think I’ve ever seen a bonus this large offered on a 401k rollover. However, I also think of Robinhood as amongst the “leanest” in customer service. I’ve done several ACAT transfers before, and they can spend a certain amount of time in “limbo” where your stocks have been taken out of the origination account, and hasn’t quite shown up in the destination account. It can be a bit nerve-wracking and I wouldn’t want to deal with Robinhood if something was lost in transit.
How long does it take for IRA transfers and 401(k) rollovers 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 and rollovers for more info. For 401(k) rollovers, this process can typically take 2-4 weeks for deposits to complete.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.
Along those same lines, I’m also not sure I want to keep my IRA there for 5 years. Most other brokerage transfer offers don’t have such a long hold time requirement.
Either way, I hope the idea of paying for IRA transfers catches on with some other brokers. Brokers fighting for assets works out well if you have assets. Robinhood says that transfers and rollovers will still earn a 1% match after 4/30/24. That’s actually still pretty good historically.
