My experience with transferring an IRA to Robinhood for the 3% match

How does this work with max contributions?

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How does this work with max contributions?

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The matches do not count towards the max contribution, similar to 401k.

So you can still contribute the full $7k in the IRA for this year and they will match 3% of that for an additional $210. So really you end up with $7,210 in your IRA this year before any market changes.

Edit - this is assuming you have Gold with them, which does cost $50/yr or $5/mo. So even then it more than pays for itself if you max an IRA out.

I moved 2x Roth and a traditional and netted $25k.
Process was seamless once my account was verified. It took several days and eventually I reuploaded using the app instead of desktop and it went right through. Oddly, my wife's account didnt require ID. I got it in just under the wire. Funds posted hours before the cutoff.

Only complaint so far, there is a limit on daily bank transfers in ($1k if I recall.) In order to get the Roth contribution in before 3% offer expired I had to do a wire which cost $25 from my bank.

Also, I dont like the app. It works but I've had to hunt around a couple times to find Roth account or buy etc... Like a game app there are icons on main screen w no indicator what they do you just have to play around w it. 5 icons are: Investing (only shows taxable brokerage), Crypto (wish I could delete this or move it last), Retirement (for some reason looks like an atomic symbol w no nucleus), offers (cant get red notification dot to disappear), and profile (where I just realized all account balances are shown w a total. I'll eventually get used to it (or not because I will only buy index ETFs occasionally w contributions or dividends) I dont like that there is a separate icon for retirement accounts instead of all accounts listed on intro screen.

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Be sure to check and update your beneficiaries. Mine dropped off with the transfer.

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good call. I do not have that limit with transfers. They actually let me do $10k immediately (i.e. before it settles). Strange you have a cap

Must have been temporary limit before the ACATS transfer when I only had $100 deposited. Just checked and my daily deposit limit is now $50k same for withdrawals. Glad I won't have to wire or break up annual contributions into multiple transactions.

From what I understand their hand was forced w the stop on trading Gamestop due to clearinghouse collateral requirements. I dont remember the details but remember listening to a couple of reputable podcasts about the situation. I'm not concerned w payment for order flow since Im only buying when I make contributions or dividends accrue. Any other shady stuff I should be aware of?

When I've asked in the past, the criticism was vague or focused on the meme stock trade halt.

If there are issue I should worry about, not too late to take my $ to anpther broker and lose the match.

Without any warning or notification they halted only the buying of certain stocks not the selling. Which created a panic mass sell off. They easily could have just halted trading completely of those stocks until the alleged collateral issue was resolved. Call me skeptical but it was pretty damn shady then and still is today.

I’d rather have my money with a company that doesn’t have a record of doing something like that to its customers. Who knows, maybe down the road they just halt the withdraw button.

Lol, it has nothing to do with Diamond Hands and everything to do with some shady shite pulled on their supposed customers. The bottom wasn’t falling until they stopped the buys. When all the people could do was sell it started to tumble. They came out a few days later and allowed you to buy but had a limit on how many of those certain stocks you could own. I think it as initially like 1 per person, so if you never sold your gme you still couldn’t buy more. If you were a panic seller you could buy 1 share. But still no limit on sales. They slowly increased the limit of shares you could own and purchase over the next few weeks. You were also restricted from moving shares to another brokerage. So if you wanted to switch to say Fidelity, you had to sell your shares and then transfer your cash. Once the restrictions were taken off GME and the other stocks took off again.

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The matches do not count towards the max contribution, similar to 401k. So you can still contribute the full $7k in the IRA for this year and they will match 3% of that for an additional $210.

So really you end up with $7,210 in your IRA this year before any market changes. Edit - this is assuming you have Gold with them, which does cost $50/yr or $5/mo.

So even then it more than pays for itself if you max an IRA out.

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Kind of surprising…. Assuming the money goes into the IRA account and not a bonus paid into just a regular brokerage. Employees have had this right with 401k, but I guess I’ve never heard of such with IRAs. Seems like a private company would not* have the authority to over contribute and essentially grant additional tax free earnings.

Interesting to see where this goes