Robin Hood: 3% match on IRA transfer

[nalor511]

I知 not sure if it has been mentioned already but I want to caution folks that rolling over a 401k to trad IRA could prohibit you from doing a backdoor Roth now or in the future depending on your specific situation.

yea this is what's holding me back from transferring ~400K in old 401ks, and only transferred a bit over 100K in Roth so far

figured the 12K after tax may not be worth losing backdoor ability, took consolation in transferring another 150K taxable individual stock holdings to Webull for 3%, but kept another ~300K in my Vanguard taxable to maintain them in index funds which is more questionable since I guess converting to etf's wouldn't have been too big a deal

You can transfer it back to your 401k (if accepted) on 5yrs so it's not lost "forever"

[badger1988]

I've completed the process of transferring 2x Roth IRA and 2x Trad IRA accounts from Vanguard over to Robinhood. It took a bit more time/effort than expected, but overall it was an easy $18.6k.

I started with a trial run on our smallest account. I called Vanguard and asked them to convert my VTSAX mutual funds to ETF equivalent (VTI). That was pretty easy, and a day or two after it processed I initiated a full account transfer from the Robinhood side. That transfer ended up getting rejected. After some digging, I realized my cash settlement fund at Vanguard was set up to use some sort of mutual fund, so I converted those to a cash equivalent. Checked on it a few days later, and there was still a small mutual fund holding...after some time on the phone with Vanguard, we figured out there was a lock that was put on my account after the first failed transfer. Got that sorted out, and then re-initiated transfer from the Robinhood side. Everything transferred over within a week, except for fractional shares which were then automatically sold and swept over as cash another week later. Repeated the process with remaining accounts. Had one that was rejected the first time...I think I may have started it before the VTSAX to VTI change was finalized. Submitted one last time, and now everything is complete.

[Mustache ride]

I知 not sure if it has been mentioned already but I want to caution folks that rolling over a 401k to trad IRA could prohibit you from doing a backdoor Roth now or in the future depending on your specific situation.

yea this is what's holding me back from transferring ~400K in old 401ks, and only transferred a bit over 100K in Roth so far

figured the 12K after tax may not be worth losing backdoor ability, took consolation in transferring another 150K taxable individual stock holdings to Webull for 3%, but kept another ~300K in my Vanguard taxable to maintain them in index funds which is more questionable since I guess converting to etf's wouldn't have been too big a deal

You can transfer it back to your 401k (if accepted) on 5yrs so it's not lost "forever"

Agreed. I知 not sure how common that is for 401k plans to accept rollover IRAs, but I know my sample size of 2 is 50/50 so YMMV.

[nalor511]

Robinhood announced that there will be a new 1% deposit bonus for taxable accounts, and a 3% cash-back-on-everything credit card, beginning May 1.

[dividendman]

Robinhood announced that there will be a new 1% deposit bonus for taxable accounts, and a 3% cash-back-on-everything credit card, beginning May 1.

I'm in the wait-list for the credit card... 3% back on everything is crazy good.

[nalor511]

Robinhood announced that there will be a new 1% deposit bonus for taxable accounts, and a 3% cash-back-on-everything credit card, beginning May 1.

I'm in the wait-list for the credit card... 3% back on everything is crazy good.

I don't have that much non-grocery spending so it's meh for me, but it looks like a good card (return protection, extended warranty). I more look forward to the 1% deposit bonus (paid monthly over 2 years), personally.

[nalor511]

Only 29 more days to get your transfers locked in, anyone who wanted to do the 3% IRA bonus, FYI

[salt cured]

Anyone pull the $1000 in interest-free margin into their brokerage account? Robinhood pays 5% on cash, so it would seem a good way to subsidize the cost of Gold.

[dividendman]

Anyone pull the $1000 in interest-free margin into their brokerage account? Robinhood pays 5% on cash, so it would seem a good way to subsidize the cost of Gold.

I did, you need to have $2k minimum in the regular brokerage account. I used the $2k to buy $3k of SGOV ($1k on margin). SGOV pays slightly over 5%.

[salt cured]

Anyone pull the $1000 in interest-free margin into their brokerage account? Robinhood pays 5% on cash, so it would seem a good way to subsidize the cost of Gold.

I did, you need to have $2k minimum in the regular brokerage account. I used the $2k to buy $3k of SGOV ($1k on margin). SGOV pays slightly over 5%.

Nice tip.

[HeadedWest2029]

I do similar, only with BOXX because of tax efficiency https://etfsite.alphaarchitect.com/boxx/
Basically, control when you take income vs dividends

[felizcortez]

Anyone pull the $1000 in interest-free margin into their brokerage account? Robinhood pays 5% on cash, so it would seem a good way to subsidize the cost of Gold.

I did, you need to have $2k minimum in the regular brokerage account. I used the $2k to buy $3k of SGOV ($1k on margin). SGOV pays slightly over 5%.

How does the monthly fee for gold get paid when you are doing the margin deal? Do you have to liquidate some of the SGOV to pay it or do they automatically sell some and take the fee out?

[dividendman]

Anyone pull the $1000 in interest-free margin into their brokerage account? Robinhood pays 5% on cash, so it would seem a good way to subsidize the cost of Gold.

I did, you need to have $2k minimum in the regular brokerage account. I used the $2k to buy $3k of SGOV ($1k on margin). SGOV pays slightly over 5%.

How does the monthly fee for gold get paid when you are doing the margin deal? Do you have to liquidate some of the SGOV to pay it or do they automatically sell some and take the fee out?

I think they just take it from your margin if you don't have cash. SGOV pays out more than enough that you won't get a margin call... Even if you do SGOV doesn't go down in value.

[nalor511]

Apparently they also have $2.2mil of fdic coverage on the 5% cash sweep, which was news to me https://www.fool.com/the-ascent/buying-stocks/articles/3-unique-perks-robinhood-is-offering-gold-members-1-match-on-all-deposits-a-new-credit-card-and-more/ , but I think it's ony for taxable accounts (pairs well with the upcoming 1% taxable deposit bonus)

[dragoncar]

Only 29 more days to get your transfers locked in, anyone who wanted to do the 3% IRA bonus, FYI

When痴 the last day I can start this?  I知 procrastinating. 

[salt cured]

Good analysis from Rob Berger for those on the fence.

https://youtu.be/TPAsO58C0H4?si=cgBe8tINO84bxBiN

[shuffler]

When痴 the last day I can start this?  I知 procrastinating.

IIRC, the transfer has to *complete* before the end of the month.
The time that the transfer takes depends on your institutions.

For reference, I requested RH to transfer 2 accounts from Fidelity.  6 days.  3/21 -> 3/26.

The bonus is worth most of a year's spending for us.  That's nice.
And yes, I'm using the $1k margin in SGOV to offset the cost of RH Gold.

And yes, I've set reminders to unwind this stuff.  Cancel RH Gold after 1 year, and move accounts back to Fidelity after 5 years.

[nalor511]

When痴 the last day I can start this?  I知 procrastinating.

IIRC, the transfer has to *complete* before the end of the month.
The time that the transfer takes depends on your institutions.

For reference, I requested RH to transfer 2 accounts from Fidelity.  6 days.  3/21 -> 3/26.

The bonus is worth most of a year's spending for us.  That's nice.
And yes, I'm using the $1k margin in SGOV to offset the cost of RH Gold.

And yes, I've set reminders to unwind this stuff.  Cancel RH Gold after 1 year, and move accounts back to Fidelity after 5 years.

If you go for the new 3% credit card or the 1% bonus in taxable account, you might end up keeping gold for longer. They're making it tempting (which is probably the point)

[salt cured]

I plan to keep it as long as it pays for itself, which it does quite easily with the current perks.

[EchoStache]

If I consider this, it would probably be to keep it rather than cancel it in one year.  I'm still accumulating, so 3% match on all future IRA contributions along with the 3% on transferred funds, plus the 3% cash back card, 1% for cash deposits, 5% FDIC rate, etc.

[dragoncar]

lol, they rejected my application.  Maybe I fat fingered something.  If it doesn't resolve I guess it makes my choice easy but maybe a little worried there is something negative in "the databases".  Don't want to run into issues opening a bank account in the future

[CptCool]

I just signed up for a new account, got gold, and started the process for transferring my roth + tIRAs. However I tried to activate the margin on the after-tax account to take advantage of the free $1k margin and I was told I am not eligible for margin trading on the account - anyone else have that problem?

I haven't actually transferred anything to the after-tax account yet so maybe that's the issue

[salt cured]

I just signed up for a new account, got gold, and started the process for transferring my roth + tIRAs. However I tried to activate the margin on the after-tax account to take advantage of the free $1k margin and I was told I am not eligible for margin trading on the account - anyone else have that problem?

I haven't actually transferred anything to the after-tax account yet so maybe that's the issue

Same thing happened to me. Transfer in $2000, wait for it to settle, then you can activate it.

[shuffler]

Same thing happened to me. Transfer in $2000, wait for it to settle, then you can activate it.

Same.  Though I had to chat with someone to get it enabled.  No big deal.