SoFi IRA / Prepare for Retirement with Roth and Traditional

SoFi IRA review quick take: A retirement account to invest in Roth IRAs, traditional IRAs, and SEP IRAs.

What is SoFi IRA?

SoFi IRA allows you to choose the investment style, whether you want self-directed investing for hands-on control or automated investing for a portfolio built for you by a robo-advisor.

Your IRA options include Roth, traditional, and SEP. With as little as $1, you can build your retirement savings.

Open your SoFi IRA account in 2 minutes.

What’s an IRA?

IRA stands for Individual Retirement Arrangement, a tax-advantaged account with annual contribution limits set by the IRS.

There are 3 types of SoFi IRAs:

• Traditional IRA: Earnings can potentially grow tax-deferred until you withdraw them in retirement.
• Roth IRA: Make contributions using after-tax dollars. You can contribute up to a certain amount each year. Earnings grow tax-free.
• SEP IRA: A simplified Employee Pension (SEP) plan allows self-employed and business owners to contribute to their retirement savings.

Why Invest in an IRA?

IRAs are tax-advantaged accounts that can help you invest for retirement with potential tax advantages.

1. Depending on the IRA, you can save taxes now with a deduction or save later with a tax-free withdrawal.
2. Grow your investment account with income from interest, dividends, and capital gains.

Learn more about IRAs and how they work.

How SoFi IRA Works

When you choose an IRA through Automated Investing, you’ll start by answering questions. Depending on your risk tolerance and goals, SoFi will automatically suggest the right IRA for your situation. Your SoFi retirement portfolio may contain low-cost exchange-traded funds (ETFs), stocks, and more.

How it works:

• Decide which IRA is best for you: Choose between a traditional, Roth, or SEP IRA.
• Select how you’d like to invest: Do you want an automated way to manage your IRA or want to select your own investments?
• Open your IRA: Fund your account and start investing.

With SoFi IRA, you can add to your retirement savings one-time or through recurring contributions.

Key Features

SoFi retirement accounts include:

• Minimum Contributions: $0 minimum deposit. $0 account minimum, but you will need $1 to start investing.
• SoFi IRA Match: Get a 1% match from SoFi on contributions to your active or automated IRA up to the annual contribution limits.
• Professional advice: Get complimentary financial advice from a CFP®.
• Diversified portfolio: investing strategies include exchange-traded funds (ETFs), stocks, alternative investments, and more.
• Automatic contributions: set up recurring investments.
• Security & Protection: Accounts are SIPC insured up to $500,000 but do not protect against market risks.
• Robo-advisor: Choosing automated investing, your IRAs are managed and optimized based on your age and the time until you reach “retirement age,” which is currently 59 ½ years old, according to the SSA. The algorithms automatically rebalance your investments over time.

Fees

• Maintenance fees: $0
• Commissions: $0

There’s no cost to open a SoFi IRA. However, other fees may apply.

Pros and Cons

Pros

• Invest once, daily, weekly, or monthly
• Access to stocks, ETFs, alternative investments, and more
• Potential tax benefits

Cons

• No tax strategy
• No interest rate on uninvested cash

Who is it best for?

SoFi IRAs are best for investors who want an easy-to-use, low-cost platform that offers extras.

SoFi IRA Review

SoFi IRA is a legitimate service offered by a publicly traded company ($SOFI). The SoFi app has a 4.7 out of 5-star rating in the App Store and an excellent rating of 4.7 out of 5 on Trustpilot, with over 8,500 reviews.

With SoFi, you can choose how to invest using IRAs. Whether you want to invest on your own or have a robo-advisor do the work for you. Both options give you access to investing in stocks, ETFs, and more.

Now, it’s important to know that all IRA accounts are regulated with tax implications. Withdrawing money before retirement age can result in taxes, early withdrawal fees, and penalties assessed by the IRS.

Start your SoFi IRA today.

How to Start Using SoFi Retirement

Minimum Requirements

• Must be at least 18 years old
• Verifiable personal information
• U.S. citizen or resident
• Social Security number

Step-by-Step to Open a SoFi IRA

The time needed: 3 minutes.

1. Getting started
   • Download the app or click on the link.
2. Select Active or Automated Investing
   • Submit your personal information, such as name, email, and password.
3. Open an IRA
   • Complete the signup.
4. Fund your account
   • Add money to your new brokerage account.

SoFi IRA Alternatives

There are SoFi IRA alternatives such as Acorns IRA, Webull IRA, Stash IRA and more.

SoFi Retirement FAQ

Can I withdraw from your SoFi IRA account?

You are allowed to make early withdrawals, but there are tax implications for doing so, including possible income taxes, a 10% early withdrawal penalty, and other fees. The IRS website provides more information about the taxes and penalties.

Can I rollover my existing IRA or old 401(k) into SoFi?

You can also transfer and roll over existing retirement plans into SoFi IRAs and potentially save on management fees.

• Transfer an IRA: transfer your existing IRAs from other brokerages.
• Roll over a 401(k): Submit a request to roll over your previous employer-sponsored plan.