IRA Match growth potential
To help you visualize the effects of compound interest on your potential IRA returns over time, we used a hypothetical annualized rate of return of 8% for your invested IRA Match.
Keep in mind, your actual returns will vary and may be less than what’s shown in the following example of potential growth of only your IRA Match over the next 45 years. It’s important to remember that your returns are not guaranteed and this illustration is hypothetical. Review Disclosures for more details about your risks.
You can use this formula calculator to project how your IRA Match might grow over time with the following formula and assumptions:
Formula: Initial investment ($0) + Monthly IRA Match amount ($5.41) * Length of time (45 years) * Interest rate (8%) with an Interest rate variance of 0 and Annual compound frequency = Potential total retirement savings just for the 1% match
Hypothetical and other assumptions:
The hypothetical illustrations of mathematical principles that are described in this article and in the app do not predict or project the performance of any investment or strategy, nor do they represent any guarantee of returns. Individual investor results will vary.
The impact of the Early IRA Match Removal Fee (when applicable) and any investment fees have not been included in the examples, nor has the impact of inflation, withdrawals, or any potential dividends been taken into account.
Ordinary income and, in some cases, penalty taxes may apply to distributions from retirement accounts, effectively reducing gross returns.
All investments involve risk. Investors should consider their investment time horizon and income tax bracket when making investment decisions. Past performance does not guarantee future results. Robinhood does not provide tax advice.