To help you visualize the effects of compounding interest on your potential IRA returns over time, we used a hypothetical annualized rate of return of 8% for your invested IRA balance.

Keep in mind, your actual returns will vary and may be less than what’s shown in the following examples of potential growth of your IRA over the next 35-45 years. It’s important to remember that your returns are not guaranteed and these illustrations are hypothetical and not intended to represent an exact account value at any given time. Review Disclosures for more details about your risks.

Please note, the following examples do not account for the impact of investment or account fees, inflation, contribution changes, withdrawals, or any potential dividends.

You can use publicly available annual return calculators to see how much your match can grow based on your individual circumstances and time horizon.

Example 1: Growth of 1% IRA match

Hypothetical and other assumptions:

• You contribute $7,000 to your IRA each year.
• You earn a 1% IRA match every year, which would be 1% multiplied by $7,000 equals $70 each year.
• You invest your full IRA match amount and earn an average of 8% each year over 45 years.
• The illustration assumes $7,000 is the maximum IRA contribution limit and doesn’t account for potential changes to contribution limits in the future. It also doesn’t account for catch-up contributions where the annual limit is more.
• For the purposes of illustrating the hypothetical growth of the 1% IRA match, the initial investment is $0. In actuality, you must contribute to earn a 1% match.

Example 2: Growth of $7,000 and 3% match per year

Hypothetical and other assumptions:

• You contribute $7,000 to your IRA each year.
• You earn a 3% IRA match every year, with each contribution, which would be 3% multiplied by $7,000 equals $210 each year. Although you earn an IRA match each year, the illustration only shows what the match compounded amount would be in 35 years.
• You invest your full IRA match amount and earn an average of 8% each year for over 35 years.
• The illustration assumes $7,000 is the maximum IRA contribution limit and doesn’t account for potential changes to contribution limits in the future. It also doesn’t account for a Robinhood Gold subscription fee or catch-up contributions where the annual limit is more.
• The illustration assumes a continuous subscription to Gold for the entire 35-year period. The subscription price is subject to change.
• For the purposes of illustrating the hypothetical growth of the 3% IRA match, the initial investment is $0. In actuality, you must contribute to earn a 3% match.

Example 3: Growth of 3% IRA match

Hypothetical and other assumptions:

• You contribute $7,000 to your IRA each year.
• You earn a 3% IRA match every year, which would be 3% multiplied by $7,000 equals $210 each year.
• You invest your full IRA match amount and earn an average of 8% each year for over 40 years.
• The illustration assumes $7,000 is the maximum IRA contribution limit and doesn’t account for potential changes to contribution limits in the future. It also doesn’t account for a Robinhood Gold subscription fee or catch-up contributions where the annual limit is more.
• The illustration assumes a continuous subscription to Gold for the entire 40-year period. The subscription price is subject to change.
• For the purposes of illustrating the hypothetical growth of the 3% IRA match, the initial investment is $0. In actuality, you must contribute to earn a 3% match.

Example 4: Growth of $7,000 per year

Hypothetical and other assumptions:

• You contribute $7,000 to your IRA each year.
• You invest your full IRA balance and earn an average of 8% each year over 35 years.
• The illustration assumes $7,000 is the maximum IRA contribution limit and doesn’t account for potential changes to contribution limits in the future.

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.