If you’ve seen promotions like “Get a 1% match when you contribute to your IRA” or “We’ll add a bonus when you fund your IRA,” you might be wondering: Does that extra money count toward your annual IRA contribution limit?
The answer is no. Only the money you put in from your own earned income counts toward the IRS limit. Let’s break it down so you can see exactly how IRA matches work, why they don’t affect your contribution limit, and a few tips to make the most of them.
PensionBee also offers its own 1% match when you roll over your retirement savings and on every contribution you make.
What is an IRA Match?
An IRA match is a small bonus offered by some financial institutions to encourage contributions.
For example, you roll over $10,000 from an old 401(k) into an IRA that offers a 1% match. Your provider adds $100 to your account. That $100 gets invested right alongside everything else and can grow over time, potentially turning into over $599 in 30 years (assuming an illustrative 7% annual return minus a 0.85% annual fee (6.15% net return).
Unlike employer matching in a 401(k) or SEP IRA, these matches come directly from the IRA provider as a promotional incentive, not your job.
Do IRA Matches Count Toward the Annual Contribution Limit?
The short answer: no.
Here are the 2025 and 2026 IRA annual contribution limits set by the IRS:
IRA Contribution Limits for 2025 (Traditional and Roth)
- Standard contribution (under 50): $7,000
- Catch-up contribution (age 50+): $1,000
- Total possible contribution for age 50+: $8,000
- Contribution deadline: April 15, 2026 (contributions made after this date count toward 2026)
IRA Contribution Limits for 2026 (Traditional and Roth)
- Standard contribution (under 50): $7,500
- Catch-up contribution (age 50+): $1,100
- Total possible contribution for age 50+: $8,600
- Contribution deadline: April 15, 2027
These limits apply to the combined total of all IRA contributions, including both Traditional and Roth IRAs. For the 2025 tax year, if you’re under 50 and contribute $4,000 to a Traditional IRA, you could contribute up to $3,000 to a Roth IRA, assuming your income meets the eligibility requirements.
Any match from your IRA provider is extra. It does not count toward your contribution limit, so you can still deposit the full amount allowed by the IRS.
