Robinhood Promotion
Robinhood bonus link: 1% IRA match and up to $200 FREE stock at Robinhood.
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Robinhood Promotion Details
This is a limited-time Robinhood promo. When you sign up with the broker, you will receive a random amount between $5 and $200. You can use this voucher to buy stock from a list of available companies. Robinhood offers fractional share investing, so you don't need enough to buy a whole share.
The company options rotate but include 20 of America’s top stocks, such as Apple, Tesla, and Microsoft. You can sell the stock or fractional share three days after claiming it, or keep it and watch it grow.
If you’re already on the platform, you may still be eligible for the free stock Robinhood promotion. If you refer a friend, both of you can get free stock. You can refer multiple friends and earn up to $1,500 in free stock each year. Your friends just need to sign up, get approved, and link their bank accounts. That’s it!
Robinhood IRA Promotion
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Robinhood IRA Promo Explained
The Robinhood IRA promotion offers a 1% match on eligible contributions to your Robinhood IRA. For example, if you contribute the maximum annual amount of $7,000 to your Robinhood IRA for 2024, Robinhood will add an extra $65 to your IRA.
Does this mean Robinhood is giving out free money? Yes, but there are rules and limitations. You must hold your IRA contribution amounts in your IRA for at least 5 years, or Robinhood may take back the match rewards. Continue reading to get all the details and answers to the most important questions about the promotion.
Who is Eligible for the Robinhood IRA Promotion?
Both new as well as existing Robinhood users are eligible for the Robinhood IRA promotion. Robinhood offers Traditional and Roth IRAs, and contributions to either are eligible for the matching promotion. Your eligibility to contribute to a Roth or Traditional IRA depends on IRS rules and income limits.
If you're unsure which IRA type you're eligible for or which account is better for you, Robinhood provides a comparison guide and information about income limits to help you decide when setting up a new IRA.
How Does the Robinhood IRA Promotion Work?
Whether you are an existing Robinhood customer or new, the first step is to open an IRA. You can open one Roth IRA and one Traditional IRA with Robinhood. Open a retirement account in the Robinhood app by clicking the menu icon with the two overlapping rings, as seen in the screenshot below.
Next, make sure you have an external bank account linked to your Robinhood account. This is necessary because contributions to your Robinhood IRA must come from an external bank account to qualify for the promotion. Contributions from a Robinhood brokerage or spending account do not count towards the match.
Once your Robinhood IRA is opened and your external bank account is linked, start making contributions to your IRA from the external bank account. You can do one-time transfers or set up recurring transfers. Whether you contribute the full annual maximum in one transfer or smaller amounts throughout the year, you will receive a 1% match cash reward in your Robinhood IRA for the total amount contributed.
You don’t need to do anything special to claim the match reward—it will show up directly in your IRA account automatically. You will receive your match reward within approximately one week of making your contribution.
How Much Money Can I Make from the Robinhood IRA Promotion?
Deposits into your Robinhood IRAs from transferring external IRAs or rolling over 401ks do not count
towards the matching promotion. Only new IRA contributions from an external bank account count towards
the match.
Per IRS rules in 2024, the total maximum annual contribution limit for all your combined IRAs is $7,000 if you are under 50 and $8,000 if you are over 50. Therefore, the maximum you can earn from the promotion in 2024 is $65 if you are under 50 and $75 if you are over 50.
The good news is that Robinhood is counting prior-year contributions for the promotion as well. If you haven't made any contributions to IRAs for 2022, you have until the tax filing deadline of April 18, 2024, to contribute up to the maximum annual limit of $6,000 for 2022. By maximizing contributions for 2022 and 2024, you could earn a total matching cash reward of $125.
5-Year Contribution Holding Period
For each contribution you make that earns a match, you must hold at least that contribution amount in your IRA for 5 years to keep your match. Let's look at an example:
If you contribute $5,000 to your Robinhood IRA on January 31, 2024, and get a $50 match reward, and your IRA grows to $8,000 by 2025, you need to withdraw $2,000, leaving your balance at $6,000. Since you still have at least your original $5,000 contribution, you keep your $50 match. However, if you transfer the remaining $6,000 out of Robinhood before January 31, 2028, you would forfeit your $50 match.
Other Details About Robinhood Sign Up Bonus
Robinhood doesn’t currently state any deadline for this IRA match promotion, so you could potentially take advantage of it every year until further notice.
The IRA match at Robinhood doesn’t count toward your annual IRA contribution limit. Robinhood states that the match cash reward is treated as interest income within your IRA. Therefore, the match amount is not reportable on a 1099-INT for the tax year that you receive it. Robinhood recommends consulting with a tax advisor, though, as the match reward amounts generally would be taxable when taking a distribution from your IRA.
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Robinhood Sign Up Bonus 2024
1% IRA match and up to $200 FREE stock at Robinhood.
Visit Robinhood Website
Updated on 10/1/2024.
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 25 years, and has a background in both applied math and programming.
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