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Fidelity Investments is providing both a gentle prod and generous reward to investors saving for retirement, with a new offer to match part of their IRA contributions for three years.
Under the IRA Match program - which the company says is an industry first - customers who transfer traditional, Roth or rollover individual retirement accounts can have up to 10% of their annual IRA contributions matched by Fidelity.
Here’s how the IRA Match plan works: Investors who bring IRA accounts worth at least $10,000 to Fidelity will be eligible, with the percentage of contributions matched determined by how much is transferred. Direct rollovers from a workplace 401(k) plan are not eligible.
Accounts between $10,000 and $50,000 will have 1% of annual contributions matched for three consecutive years. The match rises to 1.5% for accounts between $50,000 and $100,000, to 2.5% above $100,000, to 5% above $250,000 and tops out at 10% for accounts at or above $500,000. This means a maximum $5,500 annual tax-deductible IRA contribution would be met with at least $55 and up to $550 a year, depending on the account size.
Under the IRA Match program - which the company says is an industry first - customers who transfer traditional, Roth or rollover individual retirement accounts can have up to 10% of their annual IRA contributions matched by Fidelity.
Here’s how the IRA Match plan works: Investors who bring IRA accounts worth at least $10,000 to Fidelity will be eligible, with the percentage of contributions matched determined by how much is transferred. Direct rollovers from a workplace 401(k) plan are not eligible.
Accounts between $10,000 and $50,000 will have 1% of annual contributions matched for three consecutive years. The match rises to 1.5% for accounts between $50,000 and $100,000, to 2.5% above $100,000, to 5% above $250,000 and tops out at 10% for accounts at or above $500,000. This means a maximum $5,500 annual tax-deductible IRA contribution would be met with at least $55 and up to $550 a year, depending on the account size.
To my knowledge, this is the first plan of its kind. Rollover IRA accounts (401K not eligible) with high balances seem to benefit the most, but even a 1% minimum match is a nice incentive. Thoughts?
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