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Is the Fidelity IRA Match a Gimmick? There Are Better Deals

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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Fidelity just announced a novel way to attract your IRA retirement money: a match on your contributions for three years if you roll over money to Fidelity from a competitor.

But is it Fidelity IRA match the best deal for rolling over your money?

Here’s how it works

When you roll over money from a non-Fidelity IRA account, you’ll get a match on all of your new contributions for the next three years if you use this link to handle the rollover.

There are five tiers of matching:

  • 1% for rollovers of $10,000
  • 1.5% for rollovers of $50,000
  • 2.5% for rollovers of $100,000
  • 5% for rollovers of $250,000
  • 10% for rollovers of $500,000

You can contribute up to $5,500 to an IRA each year ($6,500 if you’re over age 50) and you can earn up to $1,950 in matching over the 3 years.

Here’s an example:

Let’s say you have $100,000 sitting in an IRA and you roll it over to Fidelity.

Then you contribute as follows, earning the 2.5% match on the contributions because you rolled over $100,000.

  • Year 1: Contribute $5,500, get a $138 match
  • Year 2: Contribute $4,000, get a $100 match
  • Year 3: Contribute $5,000, get a $125 match

That’s $363 in extra money Fidelity is adding to your account.

There may be better deals

Unless you’re doing a really large rollover for the bigger matches, you might earn more with a simple one time bonus.

For example, Fidelity itself has these lucrative one time bonuses via a different promotion:

$200 for rollovers of $50,000 – $99,999

On a rollover of $50,000, you’d earn only $165 from the ‘match’ bonus if you contribute $5,500 each year

$300 for rollovers of $100,000 – $249,999

On a rollover of $100,000 you’d earn $248 from the ‘match’ bonus if you contribute $5,500 each year

$600 for rollovers of $250,000 – $499,000

On a rollover of $250,000 you’d earn $825 from the ‘match’ bonus if you contribute $5,500 each year

$1,200 for rollovers of $500,000 – $999,000

On a rollover of $500,000 you’d earn $1,650 from the ‘match’ bonus if you contribute $5,500 each year

$2,500 for rollovers of $1,000,000

On a rollover of $1,000,000 you’d earn $1,650 from the ‘match’ bonus if you contribute $5,500 each year

Other major brokers like Schwab, Ameritrade, and ETrade offer similar one time deals.

And if you are a die hard maximizer, you could rollover your money each year to a new broker and collect bonuses each time. That would earn you substantially more than the Fidelity ‘match’ bonus could over 3 years.

But all in, while the idea of rewarding new contributions to your IRA each year is a great one as it reinforces good behavior, the actual rewards are sub-par in many cases. Do a little math first to make sure you’re not short changed.

Brian Karimzad
Brian Karimzad |

Brian Karimzad is a writer at MagnifyMoney. You can email Brian at brian@magnifymoney.com

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Bargains and Deals

Maryland Credit Union Matching Up to $25 on Youth Savings Accounts

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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For parents interested in kicking off the New Year by creating a financially healthy family, Aberdeen Proving Grounds Federal Credit Union (APGFCU) is offering a $25 match on new Youth Savings Accounts.

The bonus will only get paid out on accounts opened before January 31, 2015 and there is a $5 minimum to open a savings account and $25 must be deposited to get the full match. The bonus will be paid at the time of account opening, and must stay in the account for 90 days.

Youth Savings Accounts are designed to get children off on the right financial foot by learning the benefit of saving. This account comes with lifetime membership in the credit union, no minimum balance requirements or monthly service fee. There are also free interactive online tools to teach financial literacy and don’t forget to print off the Centsables coloring pages.

Eligibility for this promotion and credit union membership only extends to those who live, work, worship, attend school, or volunteer in Harford or Cecil County or certain areas in Middle River, Maryland or are the immediate family member of someone who does.

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Erin Lowry
Erin Lowry |

Erin Lowry is a writer at MagnifyMoney. You can email Erin at erin@magnifymoney.com

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Bargains and Deals

Get Up to $500 By Switching Your IRA to Ally

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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Please note: this article was originally published on January 15, 2015 and this offer is no longer available.

Leaving a job in the next five months? Fed up with your current IRA provider? Or do you just love a bonus offer? Then Ally may have an enticing proposal for you

For the next five months (1/1/15 – 5/31/15), Ally Bank is offering up to $500 in bonus money for making a qualifying rollover or transfer from outside Ally Bank to a new or existing Ally IRA CD or IRA Online Savings Account.

A qualifying deposit includes rollovers, trustee-to-trustee transfers and contributions. Just remember, you can only make a maximum contribution of $5,500 ($6,500 if your 50 or older) into a Traditional or Roth IRA in 2015. You won’t be able to earn the bonus offer if you simply open and contribute to an Ally IRA.

If you have a SEP-IRA through an employee or due to self-employment, you can contribute 25 percent of compensation with a limit of $265,000 or $53,000. This will make you eligible for part the bonus. Although, the contribution does not have to be made all at once, the cut off date to earn the bonus is May 31, 2015.

The bonus offer has a tiered structure:

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Unless you’re able to contribute $53,000 into a SEP-IRA, the only way to take advantage of this bonus will likely be from a rollover. Rollovers can take weeks to complete, so if you want to get this offer, be sure to start making moves by mid-March.

This isn’t quick money. Eligible account holders will receive the bonus on July 31, 2015. Ally states it will be deposited into “into the Ally IRA Online Savings Account or IRA CD that received the last transaction to reach the deposit requirement.”

 Find a deal you think we need to cover? Let us know on Twitter @Magnify_Money or via email (info@magnifymoney.com)

Erin Lowry
Erin Lowry |

Erin Lowry is a writer at MagnifyMoney. You can email Erin at erin@magnifymoney.com

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