These 3 Modern Investing Apps Will Match Your IRA Deposits Like Employers

Self-employed persons like myself are worse off compared to your 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 heck is going to match my individual retirement account (IRA)? The answer may surprise you.

Modern investing apps like Robinhood, Acorns, and SoFi Invest® are swooping in to match your IRA deposits like employers (up to 3%). You can get a percentage of your deposits matched, just like you would if you were employed at a big company.

Not all IRA matches are equal, and there are strings attached (aren't there always?). Discover how the following investing apps can help you save for retirement faster -- plus the downsides.

1. Robinhood matches IRA deposits up to 3%

Brokerage app Robinhood matches IRA deposits up to 3% when you keep your money on Robinhood for at least five years (and keep Robinhood Gold for one year).

All Robinhood members earn at least 1% match on IRA deposits. Deposit $100, Robinhood adds $1. Deposit $10,000, earn $100. You get the idea. It's an easy, no-hassle way to save for retirement. It's faster to build savings than with a typical, no-match IRA.

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

2. Acorns matches IRA deposits up to 3%

Robo-advisory app Acorns matches IRA deposits up to 3% when you keep your money on Acorns for at least four years (and keep your subscription).

Acorns Silver members ($6 monthly) get 1% of deposits matched, up to the maximum annual contribution limit. By maximizing your 2024 contributions, you can earn up to $70 of match, almost covering the cost of subscribing. This perk has no expiration date, a rarity.

Acorns Gold members get triple rewards. Some quick math: A Gold membership costs $12 monthly ($144 annually). If you maxed out your 2024 IRA contributions, Acorns would match $210 of your IRA deposits, more than covering the membership fee. Not bad at all, if you can swing it.

3. SoFi Invest® matches IRA deposits 1%

Banking, investing, and lending app SoFi® is matching IRA rollovers and contributions 1% through the end of 2024 when you keep your money on SoFi Invest® for two years after the promo ends.

SoFi Invest® is offering the promo through the end of 2024. New and old members can get rollovers and contributions matched 1%, up to the annual contribution limit. You get your bonus within two months of your deposit settling.

The downside of IRA matching

You must keep your money deposited for years to earn your full IRA match. If you withdraw early, your stock broker may withdraw your match fully or partially.

Brokers do this because it keeps you from hopping from one to another. In exchange for extra retirement savings, you lock your money onto the broker for years. Don't expect to toss your match onto an app, snag the bonus, and instantly rollover your account for another bonus.

It may be worth locking in your money if you trust a broker enough to stick with them for the long term. Worst-case scenario, you rollover your account anyway, and forfeit your bonus.

IRA deposit match contribution limits

IRA deposit matches don't count toward your annual contribution limits ($7,000 in 2024 for those under 50, $8,000 otherwise). So, you can save without worrying about hitting the ceiling on contributions faster than expected.

Contribution limits on IRAs are much stricter than limits on 401(k)s, however. In that respect, W-2 employees with 401(k) matches continue to have an advantage over self-employed savers.

The typical person with 401(k) match gets 4.8% matched, according to research by Fidelity. Self-employed people like me have a ways to go before reaching parity 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.