Contribution Match
Hello,
We got an inquiry regarding the program below. Mind taking a look? Basically the company is offering to “match” contributions to someone’s Traditional/Roth IRA. To clarify, the individuals are not employees of the company.
I have never heard of a third party being able to add funds to an IRA for someone and not count toward the annual IRA limits. Is this allowed?
https://robinhood.com/us/en/about/retirement/
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2024-01-23 03:20
This is a bonus added to the IRA and not reported as a contribution. Basically it is treated as IRA earnings. But there are catches with this bonus such as a 5 year holding period for each year’s bonus or the bonus is recaptured by Robinhood. And there may be other requirements as well, so no free lunch.