These 3 modern investing apps will match your IRA deposits just like your employer

Self-employed people like me are at a disadvantage compared to the typical W-2 employee in one key respect: we don’t have access to employer-sponsored 401(k) plans. Employers often match retirement contributions to a 401(k), but who the hell is going to match my individual retirement account (IRA)? The answer may surprise you.

Modern investing applications like Robinhood, Acorns and SoFi Invest® step in to match your IRA deposits, as do employers (up to 3%). You can get a percentage of your deposits as if you were employed by a large company.

Not all IRA matching is created equal and there are some strings attached (isn’t that always the case?). Discover how the following investing apps can help you save for retirement faster – plus the downsides.

1. Robinhood matches IRA deposits up to 3%

The Robinhood brokerage app matches IRA deposits up to 3% if you keep your money on Robinhood for at least five years (and keep Robinhood Gold for a year).

All Robinhood members earn at least 1% on IRA deposits. Deposit $100, Robinhood will add $1. Deposit $10,000, earn $100. You have the idea. It’s an easy and hassle-free way to save for retirement. It’s faster to build savings than with a typical IRA without a match.

Robinhood Gold members receive triple the amount, which is often enough to cover the cost of a $5 monthly Robinhood Gold membership or even more. Learn more about whether opening an IRA with Robinhood is right for you and earn up to 3% extra for retirement.

2. Acorns matches IRA deposits up to 3%

The Acorns robo-advisory app matches IRA deposits up to 3% if you keep your money in Acorns for at least four years (and maintain your subscription).

Acorns Silver members ($6/month) receive 1% matched deposits, up to the maximum annual contribution limit. By maximizing your contribution in 2024, you can earn up to $70 per match, which almost covers the cost of your subscription. This perk has no expiration date, which is rare.

Acorns Gold members receive triple rewards. Quick math: Gold membership costs $12 per month ($144 per year). If you exceed the maximum amount of your IRA contributions in 2024, Acorns will cover $210 of your IRA deposits, which will more than cover your membership fee. Pretty good if you can swing it.

3. SoFi Invest® Matches IRA Deposits 1%

SoFi® banking, investing and lending app matches IRA deposits by 1% through the end of 2024 if you keep your money in SoFi Invest® for two years after the promotion ends.

SoFi Invest® offers a promotion until the end of 2024. New and old members can receive deposits equal to 1%, up to the annual contribution limit. You will receive the bonus within two months of posting your deposit. (Rollovers do not count towards match promotion.)

The downside of matching an IRA

To earn the full IRA amount, you must deposit your money over the years. If you withdraw early, your stockbroker may withdraw your match in whole or in part.

Brokers do this because it prevents you from jumping from one to the other. In exchange for additional retirement savings, you lock your money with a broker for years. Don’t expect to upload your match to the app, collect your bonus and immediately transfer your account other bonus.

It may be worth locking up your money if you trust the broker enough to stay with them for the long haul. Worst case scenario, you’ll transfer your account anyway and lose your bonus.

IRA contribution limits

Matching IRA deposits do not count toward annual contribution limits ($7,000 in 2024 for individuals under age 50, $8,000 otherwise). So you can save without worrying that you’ll hit your contribution ceiling sooner than expected.

IRA contribution limits, however, are much more stringent than those for 401(k)s. In this respect, W-2 workers with 401(k) matches still have an advantage over self-employed savers.

According to research by Fidelity, the typical person with a 401(k) match receives a 4.8% match. Self-employed people like me still have a long way to go before we reach the level with W-2 employees. But it’s a start. I’m willing to commit to my favorite broker for years if it helps me save for retirement.