Is a 1% IRA rollover match worth more than a lower expense ratio?

By Kaz · Published 6 October 2026 · How this site checks figures

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Summary

Yes, if the lower-cost account saves less each year than about 1 percentage point divided by the number of years the money stays; beyond that, the lower expense ratio wins. In this site's example, a 1% match on a $100,000 rollover is worth more than an account costing 0.10 percentage points less a year for about 10 years; over 25 years, a gap of just 0.04 points cancels it. Robinhood and SoFi both pay 1% on 401(k) rollovers into their IRAs, on terms checked October 6, 2026, and both take the match back if the money leaves within five years.

A worked example: $100,000 and a $1,000 match

Example: two IRAs receive the same $100,000. One adds a 1% match, so it starts at $101,000, but costs more each year. The other starts at $100,000 and earns 6% a year after its own costs. The question is how big the yearly cost gap can be before the match is used up.

The 1%-divided-by-years rule in the summary lands within 0.02 points of each row. The exact figures come from solving $101,000 × (1.06 − gap)^years = $100,000 × 1.06^years, calculated October 6, 2026.

Here is what three specific gaps do to the same $100,000:

At a 0.25-point gap, the annual advisory fee that Betterment, Wealthfront and SoFi each list for their automated accounts, the match lasts about 4.2 years. These are illustrations at a constant 6% return, not forecasts.

The two offers checked

Robinhood's IRA match FAQ says: "You can earn a 1% match on all IRA transfers and old 401(k) rollovers into self-directed IRAs, no Gold membership required," with "no cap on the match you can earn." Gold members get 3% on annual contributions, but transfers and rollovers stay at 1%. The match must stay for five years from the deposit: if you withdraw early and the remaining balance falls below the deposit plus the match, Robinhood charges an "early IRA match removal fee equal to the IRA match amount earned." It says the match is "counted as interest income in your IRA" and doesn't count toward IRS contribution limits.

SoFi's IRA match terms pay 1% on rollovers from a "401(k), 403(b) or 457(b)" made by check deposit; ACAT transfers and SEP IRAs are excluded. The match is "paid in cash within 5 business days" of the funds settling and must be kept "five (5) years from the settlement date." Leave early and SoFi removes a proportional amount of the match, "based on the breach in retention value, not retention period." The terms apply "any time from August 26, 2026 onwards," and SoFi may end the offer "at any time without advance notice."

Where a cost gap would come from

Both offers are for self-directed IRAs, where you choose the funds. Buy the same index fund at either broker as you would elsewhere and the expense ratio gap is close to zero; the match is then extra money, as long as you stay five years. The gap appears when the account comes with something else: a managed portfolio with an advisory fee, a fund lineup that lacks the low-cost fund you'd otherwise hold, or account charges. What a 0.50% expense ratio costs against 0.03% shows how quickly a small difference compounds, and the robo-advisor IRA fees page gives the advisory fees in dollars.

What leaving early costs

Example: the $100,000 goes to Robinhood, earns $1,000, and three years later you move the IRA elsewhere. Robinhood's terms take back the $1,000 if the balance falls below $101,000, and its fee schedule, checked October 6, 2026, lists $100 for an outgoing ACATS transfer. That is $1,100 to undo the move. The transfer-out fees at each broker list the exit charge at ten firms.

Before rolling over for a match, read three things in the terms: whether your kind of deposit qualifies (a direct rollover, a check, or a transfer), the date the five years start, and how much of the match is removed on a partial withdrawal. Then put the yearly cost of the account you'd use there into the fee calculator next to the account you'd use otherwise.

The current terms are on each firm's page: Robinhood IRA match terms and SoFi IRA rollover match.

Sources

• Robinhood, IRA match FAQ (checked October 6, 2026)
• Robinhood Financial fee schedule (checked October 6, 2026)
• SoFi, IRA match terms (checked October 6, 2026)