Boost IRA Retirement Contributions by the April 15 Deadline

An individual retirement account (IRA) is a way to invest for the future with tax advantages. But time is running out to add money, as April 15 is typically the last day to make 2023 contributions. 

For extra motivation, Robinhood offers up to a 3% retirement match for investors who contribute to an IRA and subscribe to Robinhood Gold. 

IRA tax advantages 

There are two common versions of IRAs with different tax advantages. A traditional IRA allows investors to contribute with pre-tax dollars. Basically, contributing to a traditional IRA could reduce how much someone owes for their 2023 taxes.

A Roth IRA does not provide an upfront tax deduction. However, once someone turns 59 ½, they can make tax-free qualified withdrawals from the account. They don’t owe income tax on their investment gains. 

Both IRAs delay taxes on investment gains while the money is in the account. That’s unlike a regular brokerage account, where investors owe income tax on earnings each year, even if they reinvest everything. As a result, IRAs can create a better after-tax return when investing for retirement.

Robinhood offers both types of IRAs, so investors can pick their preferred tax setup. Robinhood IRAs have no account fees, no account minimums, and trades are commission-free (other fees may apply). Between these benefits and the matching funds, a Robinhood IRA could make sense.

Contribution restrictions

For the 2023 tax year, people could put up to $6,500 in an IRA if they are younger than 50 and up to $7,500 if they are 50 or older. Additional restrictions also apply to high-income investors and those with a workplace retirement plan.

The deadline for IRA contributions extends beyond the calendar year. Investors can make 2023 contributions up until their tax filing deadline. That’s April 15, 2024 for most people. However, those with a different tax filing deadline would have until then to make contributions.

Once the tax filing deadline has passed, the chance to make 2023 contributions is gone. If someone doesn’t max out in 2023, they can’t add more money in 2024 to make up the difference. The annual contribution limit still applies. 

The Robinhood 3% retirement match

Robinhood is offering the biggest IRA match on the market.* Robinhood matches 3% whenever someone contributes to their IRA and subscribes to Robinhood Gold. The Robinhood match also applies to money transferred over from IRAs at other companies or an old 401k from a past job through April 30.

Robinhood Gold customers receive a 3% match. Other customers receive a 1% match. A Robinhood Gold customer who maxes out with $6,500 would receive an extra $195.

One downside to IRAs is that they do not include an employer match, like typically found on a 401k. The Robinhood IRA match can help independent workers who don’t have a workplace plan pursue their long-term goals.

3% match eligibility

To qualify for the 3% contribution match, an investor must have a Robinhood Gold account. They also must keep the Robinhood Gold account for at least a year and maintain the Robinhood IRA for at least five years to keep all the matching funds. Otherwise, Robinhood could deduct an Early IRA Match Removal Fee. Learn more with the IRA match FAQ.

The tax filing deadline is coming up quickly. Get started while there’s time through a Robinhood IRA with matching funds.

*Based on match dollars awarded to an IRA.