Fidelity Introduces IRA Match Program

Fidelity Investments has introduced a program to motivate investors to accelerate their retirement preparedness through a matching contribution component to qualifying individual retirement accounts (IRAs).

IRA Match, which Fidelity says is the first of its kind in the IRA market, encourages investors to increase their retirement savings by matching annual contributions to new or existing IRAs. Fidelity says its matching contributions to qualifying IRA holders start at one percentage point and range up to 10% for the largest contributors. 

Lauren Brouhard, senior vice president for retirement at Fidelity Investments, says the company’s research shows an employer match encourages 401(k) participants to save more and contribute regularly. “We wanted to bring this powerful behavioral draw to our IRA customers to not only motivate them to choose a Fidelity IRA, but also to continue growing their savings even more,” she notes. 

The match is available to new or existing customers who transfer a Roth, traditional or rollover IRA to the company. When this occurs, and an individual makes contributions to their IRA over the next three years, Fidelity will match their annual contribution, up to 10%. Direct rollovers from a 401(k) or 403(b) plan are ineligible for the match. So, for example, a customer who transfers $500,000  will earn 10% on future contributions. If a contribution of $5,500 is made in the first year, that customer will receive a $550 match.

Fidelity’s matching structure will be most compelling for the select group of IRA savers able to stock away more than $500,000 annually. This group will get a 10% match. Fidelity explains the matching structure as follows:

• $10,000 earns 1% match;
• $50,000 earns 1.5% match
• $100,000 earns 2.5% match
• $250,000 earns 5% match; and  
• $500,000 earns 10% match.

Investors interested in signing up may do so by visiting www.fidelity.com/iramatch or calling a Fidelity representative.