What is an IRA Match?

Let's break down exactly how IRA matches work and whether they're worth your attention.

An IRA match is when your IRA provider adds extra money to your account, usually around 1% when you roll over an old 401(k) or make new contributions. It's basically extra money for doing something you should probably consider doing anyway: consolidating your retirement savings and making contributions.

What is an IRA?

An Individual Retirement Account (IRA) is a personal savings account designed to help you prepare for retirement with special tax benefits. Unlike a 401(k), which is offered through an employer, an IRA is something you can open and manage yourself.

There are a few main types of IRAs:

Traditional IRA: Contributions may be tax-deductible, and you’ll pay taxes when you withdraw funds in retirement.
Roth IRA: Contributions are made with after-tax money, and qualified withdrawals are completely tax-free.
SEP IRA: Ideal for self-employed individuals or small business owners who want to contribute more than a Traditional or Roth IRA each year.

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No matter which you choose, an IRA can help you grow your savings for the long term, and some companies now make that even more rewarding through an IRA match.

How an IRA Match Works

If you've ever had a 401(k) match from an employer, this works similarly, except instead of your company kicking in extra funds, your IRA provider does. The catch? IRA matches are typically limited-time offers designed to encourage you to take action.

Here's how it works:

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 (assumes an illustrative 7% annual return, less 0.85% annual fee, for a 6.15% net return)

For people managing multiple old retirement accounts or self-employed workers building their own retirement plan, that extra boost can help with long-term growth.

See your 1% match in action with our Match Calculator.

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How to Get an IRA Match in 3 Steps

An IRA match usually happens in three simple steps:

Open or transfer into an IRA: You can roll over funds from an old 401(k) or IRA, or make new contributions.
The provider applies your match: The match is a small percentage of your contribution or rollover amount.
Your balance has the potential to grow: Once the match is added, it’s invested and earns returns just like the rest of your money.

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Most IRA matches are limited-time incentives meant to help you simplify your retirement savings while encouraging long-term growth. The goal is to encourage you to take action and reward you when you do.

IRA Match vs. 401(k) Match

While they sound similar, there are key differences between an IRA match and a 401(k) match:

Feature	IRA Match	401(k) Match
Who offers it	Financial provider or investment platform	Employer
Based on	Rollovers or IRA contributions	Payroll contributions
When it’s applied	One-time or promotional	Ongoing with each paycheck
Goal	Encourage account consolidation and saving	Encourage employee participation

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Both types of matches can help you save more for retirement but an IRA match can give you flexibility if you’re self-employed, changing jobs, or managing multiple old accounts.

Why an IRA Match Matters

IRA matches offer more than just a little extra money. By encouraging and rewarding smart financial moves, they may also support the potential growth of your savings over time.

Here’s why IRA matches can be worth it:

Added to your account: Your match is added to your current retirement savings and invested according to your portfolio.
Reward smart moves: A match helps make consolidating accounts or increasing contributions more appealing.
Simplified finances: Rolling over into one IRA can give you a clear view of your retirement picture.
Compound interest: That match keeps earning returns year after year, turning a small amount into something much bigger.

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Things to Know Before Accepting an IRA Match

Not every match program works the same way, so it’s smart to read the details before you sign up. Look for:

Eligibility requirements: Some programs require a minimum balance or contribution to qualify.
Time limits: These promotions may be available for a limited time or until all available funds are claimed.
Holding periods: You might need to keep your funds invested for a certain time to keep the match.
Account flexibility: Look for a provider that allows smooth transfers and investment options that fit your goals.

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An IRA match can be a great opportunity, but always choose a provider that aligns with your long-term retirement plan, not just the short-term reward.

Give Your Savings a Boost with a 1% Match

An IRA match is a simple but powerful way to help make your retirement savings go further. It’s a bonus for doing something you already should be doing, consolidating or contributing to your IRA. While it might not replace a traditional employer 401(k) match, it can make a meaningful difference in your savings over time. The earlier you act, the more you can benefit from compound interest and that 1% boost can potentially turn into much more by retirement.

PensionBee helps you roll over old 401(k)s and IRAs into one account, helping make it simple to keep track of your retirement. When you consolidate with PensionBee, we also give you a 1% match on your rollover and any contributions you make (terms and conditions apply).

Many rollovers happen automatically, but if yours needs extra attention, our personal rollover managers (called BeeKeepers) are ready to guide you every step of the way. PensionBee helps make it simple for you to take control of your future finances. Your investments are in diversified portfolios powered by ETFs from State Street Investment Management, one of the world’s largest asset managers.

Frequently Asked Questions (FAQs)

1. Is an IRA match the same as a 401(k) match?

Not exactly. A 401(k) match comes from your employer, while an IRA match is offered by the financial provider managing your account. Both can help give your savings a little boost, but an IRA match is typically a limited-time incentive.

2. How much can I earn from an IRA match?

It depends on the provider. Many offer around a 1% match on rollovers or new contributions, but specific amounts can vary.

3. Do IRA matches count toward my annual contribution limit?

No. The match is a bonus from the provider and doesn’t count toward your IRS annual contribution limit ($7,000 in 2025, or $8,000 if you’re 50 or older). Only your earned income, like wages, salaries, or self-employment income, can be used to make IRA contributions.

4. Can I get an IRA match if I already have an IRA?

Yes. If your provider offers a match, it can apply to new contributions or rollovers you make into your existing IRA.

6. Is an IRA match worth it?

Yes, even a small match can help jump-start your retirement savings and encourage you to take control of your financial future by rolling over old retirement accounts and making contributions.

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

Featured Articles

What is an IRA Match?

What is an IRA?

How an IRA Match Works

Be Retirement Confident.

How to Get an IRA Match in 3 Steps

IRA Match vs. 401(k) Match

Why an IRA Match Matters

Things to Know Before Accepting an IRA Match

Give Your Savings a Boost with a 1% Match

Frequently Asked Questions (FAQs)

1. Is an IRA match the same as a 401(k) match?

2. How much can I earn from an IRA match?

3. Do IRA matches count toward my annual contribution limit?

4. Can I get an IRA match if I already have an IRA?

6. Is an IRA match worth it?

Be Retirement Confident.