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If you’re interested in bringing in more cash, you may be happy to know there are countless weird ways to make money, from selling your hair to testing food to beekeeping. With the median weekly income hovering around $55,640 and inflation chipping away at Americans’ paychecks, many consumers seek extra income by starting part-time work or a side hustle. In fact, 40% of Americans currently have a side hustle, according to Zapier data.

So, if you want to pad your wallet with extra cash, here are some odd ways to make money in your spare time.

Benefits of Weird Ways to Make Money

Generating additional income is a key benefit of starting a side hustle, and sometimes you need to be creative about how to do that. When you hit on an idea that pulls in more cash, you can use that to afford some small splurges (go ahead and get that pricey salad you love twice next week), but it can also help in more lasting way.

Granted, there are pros and cons of getting a second job or multiple side hustles, but if you bring monthly income (whether $100 or $1,000 per month), you’ll reap the following advantages:

•   Repay debt. High-interest debt, especially from credit cards, can gobble up your income and inhibit financial growth. Paying off debt is a huge step forward in your financial health.

•   Boost retirement savings. Take advantage of the power of compounding interest by stashing more money into your IRA or 401(k) – your retired self will thank you!

•   Achieve financial stability. Your extra money can build an emergency fund that allows you to handle unexpected expenses or survive for a few months without work, protecting you from the consequences of sudden job loss or a downshifting economy.

•   Follow your passion. While your day job might not be the career path of your dreams, a side hustle allows you to explore what you love and earn money along the way. For example, your woodworking hobby or love of knitting can become a profitable business.

•   Accomplish a financial goal. Whether you want to take an overseas vacation or update your kitchen, making extra money can help you afford a financial goal without taking on debt or dipping into your savings.

•   Grow professionally. Although your second job might be unusual, such as becoming a professional eater, it will allow you to make new connections, acquire new skills, and open the door for career opportunities.

•   Structure time intentionally. Another job will cut down your free time, but this can be a net positive – for example, it can help you direct the hours you have to yourself to what matters most, such as spending time with friends and family. Hard work can help highlight the good times with the ones you love.

Quick Money Tip: If you’re saving for a short-term goal — whether it’s a vacation, a wedding, or the down payment on a house — consider opening a high-yield online savings account. The higher APY that you’ll earn will help your money grow faster, but the funds stay liquid, so they are easy to access when you reach your goal.

Making Money: 27 Unusual Ways

If you’re looking for ways to make money from home or in the outside world without loads of special training, check out this list of weird ways to make money.

1. Renting Your Backyard for Campers

No matter where you live, if you’re in a house, your lawn could be a sought-after destination for adventurers and budget vacationers. Via websites like Hipcamp, you can advertise a comfortable, affordable place to stay for a couple of nights for backpackers or vanlifers. Bonus points if you’re near popular attractions. At Hipcamp, the average active host pulls in between $8,000 to $15,000 per year.

2. Becoming a Professional Sleeper

Another one of the strange ways to make money is by sleeping (seriously!). Despite its necessity and benefits, sleep is mysterious to us, and the scientific community has much to research about it. For instance, you could become a subject for researchers trying to better understand sleep. One University of Colorado study paid almost $3,000 for a study to be completed in less than a day. Sleeping also has commercial utility in various situations. For example, you might try out a company’s products, such as a prototype pillow or sleep mask. To find gigs, set up some search-engine alerts with keywords such as “sleep study” or “sleep tester” and also comb job boards, especially at universities doing research.

3. Renting Out a Shed

Have enough room on your property for extra boxes, appliances, or tools? An app like Neighbor lets you rent out your extra storage space for other people’s possessions, processes payments for your services, and is free to use. It’s like Uber or Airbnb – but with your attic or garage.

Recommended: What to Know About Renting Out a Room in Your House

4. Test Websites

You can be a professional web surfer by testing websites for companies wanting to improve their online capabilities. Tasks range from clicking a link to finding a specific page on a website. A few minutes a day could earn you income (anywhere from 10 cents to 10 dollars per assignment, depending on the time required), and payments usually come to you through a convenient app like Venmo or PayPal.

5. Being a Professional Mover

Moving is a challenge and can be a very stressful experience. People will pay big money for help packing, cleaning, and transporting items. This job is physically demanding, so it may not be for everyone. You can work weekends for a moving company or become an independent mover with a company like U-Haul. You might also advertise your services locally if you have a van and access to moving supplies.

6. Professional Eating

Here’s another odd way to make money: If you can gulp down food in a matter of minutes, professional eating is a viable side hustle. Local restaurants might give rewards for accomplishing food challenges. In addition, Major League Eating hosts food challenges across the United States with cash prizes for winners. Want to aim high? The annual Nathan’s hot-dog eating contest pays a $10,000 prize.

Recommended: How to Manage Your Money 11 Tips to Do It Right

7. Cuddling

Today’s modern, fast-paced world can deprive people of physical touch, a vital factor in mental and emotional health. Cuddle Comfort is a secure website that sets up platonic cuddling sessions. At $80 per hour or more, you could be well-compensated for helping others snuggle up and feel less isolated.

8. Befriending a Stranger

If you’re personable and love embarking on new experiences, being a professional friend may be right for you. RentAFriend.com is a website helping those lacking companionship. Whether you’re walking through a park or attending an evening event, your job is to spend time with people looking for friendship, make interesting conversation, and let your personality shine. Rates typically range from $10 to $50 an hour.

9. Being a Test Subject

Looking for more crazy ways to earn money? Ziprecuriter estimates that working full time as a test subject can earn you over $80,000 annually. By participating in market research, psychology studies, and more, you can turn your spare time into profitable experiences where you can reap the financial rewards.

10. Selling Plasma

Blood plasma is helpful for medical studies and healthcare procedures. It can save lives during surgery complications and aid scientific breakthroughs. Your body naturally produces this valuable substance, which you can sell twice per week in a process that’s similar to donating blood. For most people, the process has no side effects.

Plasma donors receive payment in a prepaid card and can earn hundreds of dollars monthly. Plus, companies like CSL Plasma pay new donors $1,000 for their first month of service to sweeten the deal.

11. Joining Writing Contests

If you have a way with words, a writing contest could be right up your alley. Whether you write as a creative outlet or to explore new ideas, you can get paid for your passion by entering a writing contest. Dozens of free and fee-based contests exist, meaning you can find your niche, enter your pieces, and hopefully win the top prize. As a bonus, you’ll receive reviews of your work and pointers for sharpening your craft. Search online for opportunities.

12. Being a Food Tester

Who doesn’t love to eat? This delicious pastime could become a weird way to earn money if you become a food tester. You might test new snacks and meals for a large corporation like Apex Life Sciences, sample high-quality products, or write reviews as a freelance food taster. A typical fee might be $15 for a 15- to 45-minute session.

13. Reviewing ‘Sensitive Content’

Another unusual way to make quick cash is to review sensitive content for websites like YouTube and Reddit. Millions of users post content every day, making it almost impossible to review all of it. Therefore, large companies hire people to review sensitive content to ensure everything is appropriate for the internet.

Remember, though; you may have to view some vulgar and upsetting content. So, if you have a weak stomach, this might not be your side hustle.

14. Recommend Items You Love

We all have our go-to essentials, like a preferred makeup brush or olive oil brand. Rather than just waxing poetic to your friends about them, you can write or post videos about your recommendations. Affiliate links online can earn you commissions. As a result, you can direct your web audience to your favorite company’s website and receive cash rewards when they make purchases.

15. Cleaning Pet Poop for Others

While not the most appetizing of propositions, that poop needs to get taken care of somehow. Pet owners without the time or physical ability to clean up after their beloved animals can make good use of your services. All you need is transportation and cleanup equipment to get started. You can build your clientele base by posting flyers around your neighborhood or advertising online. Consider charging between $40 and $100 to clean up a messy yard.

16. Host City Tours

Another unusual way to make money: If you live in a town that attracts tourists, you can conduct tours for visitors. You might have a passion for your city’s beloved parks or knowledge of its history. Whatever your specialty, you can build a website advertising your services or use an app like Showaround or FreeTour (where you earn money via tips) to put your skills to work.

17. Waiting in Line for Someone

While it’s boring when doing this for yourself, waiting in line in someone else’s place can be a profitable side hustle. Apps like Spotter or TaskRabbit allow you to connect with customers looking for someone to wait in line for a concert ticket, new tech gadget, or parking permit renewal. The more popular the event or product, the more you can charge (some people report having made $80 per hour). Plus, you can listen to an audiobook, podcast, or music while you wait.

18. Losing Weight

Here’s a weird way to earn money that’s also potentially healthy. Shedding pounds can also mean big capital gains with websites like HealthyWage. Here’s how it works: you set your weight loss goal and then wager a dollar amount of your choice that you’ll be successful. This setup gives you extra motivation by putting your money where your mouth is. If you hit your goal, you win prize money and receive your initial investment back. However, failing to hit your goal means losing your wager.

Recommended: 39 Passive Income Ideas to Build Wealth

19. Selling Your Hair

This opportunity is more selective, as you’ll have to grow your hair at least 10 inches long in most cases to sell it for a significant profit. However, if your hair grows quickly, you can pair this side hustle with others to generate income. Human hair is excellent for weaves, wigs, and scientific uses, and you can sell yours on websites like Hairworks.com or eBay.

20. Give Your Opinion With Online Surveys

If you love giving your opinion, filling out online surveys is a great way to earn extra cash. Platforms like One Opinion and Survey Junkie want anyone to share their detailed opinions on specific topics. Surveys can take anywhere from 5 minutes to one hour to complete. You can expect to make about $1 per survey.

21. Selling Digital Templates

Folks with a knack for design can enjoy selling digital templates and make thousands of dollars monthly. You can create e-book page layouts, brand kits, social media packages, and more. Using a site like Canva you can create endless digital templates that you can sell digital templates right from the comforts of your own home.

22. Beekeeping

Here’s another offbeat way to bring in money: Beekeeping is the practice of caring for bees so they can contribute to the growth of your garden or the environment. Before you can start making money, you will need to gain some experience (if you still need to). Once you gain experience, you can make money by selling bee products such as honey, providing pollination services, or educating others on beekeeping.

23. Organize Other People’s Things

We can thank The Home Edit and Marie Kondo for encouraging everyone to live a life of organization. But, while it comes easy for some, others may struggle to get started. So, if you enjoy organizing the closet, cabinets, papers, or anything, you could make between $30 and $130 per hour organizing people’s homes. To get started, sign up for sites like Thumbtack and Westtenth and let people know about your services.

24. Being a Statue

Believe it or not, you can make money without even lifting a finger, or actually moving at all. Acting as a statue on a busy street can help you earn some extra dough from passers-by and tourists who leave tips. Depending on the time and traffic of the location you choose, you can make as much as $60 to $80 per hour.

25. Taking Notes for Others

Another unusual way to make money is to sell your college lecture notes. Sites like StuDocu let you sell your notes to students who missed a lecture or need help getting through course material. Keep in mind that notes need to be typed, not handwritten. The top pay is around $22 for an upload.

26. Mystery Shopping

When you become a secret shopper or mystery shopper, you can earn cash by shopping at local retailers, completing shopping surveys, or taking photos of displays. Registering for an account with apps like Mobee or Marketforce can help you start earning extra money shopping.

27. Review Music

Music lovers can make extra money by reviewing unsigned artists online at Slicethepie. Some categories will pay more than others. However, all payments will be listed at the top of the category page so you can decide if the review is worth your time. Typical pay for those just starting out is less than 20 cents per review, but if you love listening, this could bring in some extra pocket change.

The Takeaway

Using these weird ways to make money can help you boost your savings, pay off debt, or allow you to get paid for doing something you love. So, whether you make extra cash sleeping, eating, shopping, or giving your opinion, you can inch one step closer to your financial goals.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Where can I sell weird things?

Websites like Ecwid, Facebook Marketplace, Etsy, and eBay are just a few platforms where you can sell weird items like keychains, eccentric jewelry, or clothes. People have even marketed air on some of these sites.

How much money can I make from these weird ways to make money?

The amount of money you make in these weird ways will depend on the gig you choose and how much time you invest in it. For example, if you choose to start reviewing music and only post a few critiques, you might only make a dollar; if you clean up someone’s messy yard of dog poop, you might earn $100 per session after proving to be a competent and reliable provider.

Are any of these weird ways to make money illegal?

No, all of the crazy ways to make money above are legitimate and legal.

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Photo credit: iStock/Diamond Dogs

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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Are you a member of the military? Whether on active duty or a veteran, in the Reserve or National Guard, you have unique opportunities to improve your money management. Taking advantage of things like military discounts and special mortgage loans are smart ways for military members to prioritize their finances. What’s more, there are additional actions military members and their families can take to protect and grow their finances.

Read on to learn how to budget and grow your money in the military, including:

•   How to save money in the military

•   How to snag discounts

•   How to shop wisely on base

•   How to access tax breaks

The Importance of Saving Money in the Military

Saving money is always a good thing when planning for your future. Members of the military — whether single, in a relationship, or married with kids — may especially benefit from making some careful money moves now. That way, you may be in top financial shape after the final deployment ends.

Recommended: 5 Ways to Achieve Financial Security

11 Tips for Military Members to Manage Their Money

Wondering how to save money while in the military? We’ve got 11 tips that you may find useful if you’re a military member thinking about your financial futures.

1. Creating a Budget

Having a monthly budget is a good way to track your expenses against your income. While it may be tempting to spend all of your paycheck each week during deployment, you might want to consider funneling away some money into savings or retirement to help achieve long-term financial goals and build wealth. A budget can help you do this, whether you use a journal, a spreadsheet, or an app to keep tabs on your money.

Budgeting for beginners can be overwhelming, but it’s an important step. Seeing your finances laid out in a clear budget makes it easier to determine how much you can afford to set aside from your paycheck, whether it’s to pay down debt or build your savings.

Recommended: Why You Should Pay Yourself First

2. Opening a Savings Account

As part of your budget, it’s a good idea to open a savings account, if you don’t already have one. You can set aside money here for everything from a down payment on a house after your service to a new car to a wedding. If you intend to leave money in the account for the duration of your deployment, it’s especially wise to find a high-yield savings account that pays high interest on all your deposits.

3. Automating Your Savings

Once you have a savings account, you might benefit from automating your savings, if your financial institution offers this. When you set up automatic transfers from checking to savings, the money gets whisked away before you see it sitting there, connected to your debit card, and tempting you to spend it.

Recommended: What Is an Aggressive Savings Plan?

4. Avoiding Overspending

An important reason to create a budget is to avoid overspending, especially with credit cards. When you build a budget, you’ll be able to identify how much you can safely spend each month while working toward your goals. Whether actively deployed or in between deployments, it’s a good idea to rein in any unnecessary expenses and recognize common reasons for overspending.

Before making a major purchase, you might try the 30-day rule: Wait a full 30 days to see if the urge to buy the item passes. If it does, you’ve avoided an unnecessary expense.

5. Utilizing Military Resources (Like Military Discounts)

How else to save money in the military? Many retailers, restaurants, and services offer discounts to members of the military, usually if you provide proof of military identification. While military discounts may seem small, they can add up over time. They are especially helpful when making larger purchases, like a new car.

Some businesses extend military discounts to spouses as well. If you are deployed with a spouse back home, make sure your partner knows to ask about military discounts when shopping as well.

Wondering how to find the best military discounts? One route is to check out Military.com’s discount page and subscribe to their deals and discounts newsletter.

6. Shopping on Base

Shopping on base is a great way to scale back your expenses as a member of the military. For example, gas is typically cheaper on base, and you can usually get great discounts on groceries by shopping at the commissary because it doesn’t charge a sales tax.

Recommended: Feeling Guilty About Spending Money?

7. Investing in Education

If you want to pursue education after your service, check out the GI Bill. This bill can help veterans pay for college, graduate school, and training and certification programs. Head to the VA website to find out how you can take advantage of this education assistance and potentially save money by being in the military.

You can also see if you qualify for military student loan forgiveness.

8. Taking Advantage of Veterans Administration (VA) Home Loans

Buying a home can be a stressful experience, from saving for a down payment to getting approved for a mortgage loan to making an attractive offer fast enough to actually get the house you want.

As a servicemember, veteran, or surviving military spouse, you likely have unique access to a Veterans Administration (VA) home loan through private lenders.

When you purchase a home using a VA home loan, you typically don’t need a down payment, you’ll get a low interest rate, you won’t have to pay for private mortgage insurance, and closing costs are limited. And this isn’t a one-time deal: You can use a VA home loan for multiple homes over the course of your life.

9. Getting a Life Insurance Policy

The U.S. Department of Veterans Affairs offers Servicemembers’ Group Life Insurance (SGLI). In fact, if you qualify as a servicemember, the VA automatically signs you up (but note – it isn’t free!). You can update the life insurance coverage as you see fit, change your beneficiaries, and extend coverage beyond your service, all by logging in with your CAC or DS Logon.

Learn more on the official SGLI page . But remember: SGLI is not your only life insurance option during and after your service. You might find better terms by shopping around for other life insurance policies.

10. Learning About Tax Breaks

The IRS offers unique tax benefits to members of the U.S. Armed Forces. These include tax breaks, tax deadline extensions, free tax help from volunteers, and more. If you’re unsure of how your service affects your tax situation, browse the free IRS resources or work with a certified tax professional.

Recommended: Tax Write-Offs for Young Adults

11. Planning for Retirement

Retirement may seem like a long way off, especially if you have just enlisted. But it’s a good idea to start planning for retirement early to maximize your income in retirement. A popular option for members of the military is the Thrift Savings Plan (TSP), a federally sponsored retirement and investment plan. This plan is akin to an employee-sponsored 401(k). Some members of the military supplement this coverage with other retirement plans.

Banking With SoFi

Ready to start saving money while in the military? You can open an online bank account with SoFi to make budgeting, spending, and saving happen in one easy-to-access place. It’s not only more convenient — it’s more rewarding, too. SoFi Checking and Savings accounts offer a super competitive APY and no fees, which can help your money grow faster.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Is it easy to save money in the military?

Saving money while in the military can be easy if you take advantage of several helpful military programs, including VA home loans, military discounts, federally sponsored retirement plans, and even cheaper gas and groceries on base.

What expenses do military members have?

Members of the military may incur the same expenses as the average person, including housing, food, and clothing. However, in addition to a servicemember’s paycheck, the Department of Defense also offers allowances that members of the military can use for basic necessities, which can help lower daily expenses.

How much do military members earn?

Members of the military make different amounts depending on their rank and years of service. However, servicemembers’ full payment includes not only their basic pay and military benefits but also military allowances, which go toward the cost of basic necessities like food and housing. Military members, whether servicemembers or officers, can earn additional pay through the Department of Defense’s Special and Incentive Pays program.

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Photo credit: iStock/YakobchukOlena

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Most of us are aware that diverting waste from landfills can be a go-green practice that’s good for the planet. But did you know that recycling everyday items — from metal cans to cooking oil — can also put some green in your wallet?

With a little time, effort, and know-how, you can recycle the following 21 items to generate some additional bucks. After all, one man’s trash is another man’s treasure. Read on to learn more.

Is Recycling Financially Worth It?

The practice of waste diversion can help households and businesses save money while helping to protect the planet. It can also be a satisfying way to make money from home (or mostly from home).

However, you may need to do the following:

•   Seek out a recycling center or collection point.

•   Prepare the items for recycling (washing, sorting) according to the center’s specifications.

•   Make a tax-deductible donation vs. receiving a cash payment.

Recycling can be a positive way to earn a bit of extra money during your off-hours from your full-time job. If you are a freelancer, you’ll need to determine whether the time spent is worth it, as it might take away from higher-paying hourly work.

Recommended: 39 Passive Income Ideas to Build Wealth

How Much Do You Get Per Item You Recycle?

Recycling can become a green way to earn money, but it can be a challenge to estimate how much you’ll make.

Redemption centers for clothes, glass bottles, or scrap metal pay varying amounts from state to state. For example, in New York State, you can get 5 cents for every returned aluminum can, while Michigan offers 10 cents per can.

You can do a little research to determine where you’ll get the most cash for what’s otherwise considered trash and which items yield the most money back.

Quick Money Tip:Typically, checking accounts don’t earn interest. However, some accounts will pay you a bit and help your money grow. An online bank account is more likely than brick-and-mortar to offer you the best rates.

21 Everyday Items That You Can Recycle for Money

Whether your goal is downsizing your life and decluttering, making additional dollars, or both, purging your household of unused items can lead to a cleaner environment and fuller piggy bank.

Wondering what you can recycle for money? Here are 21 ideas:

1. Cans

On the list of what to recycle for money, aluminum beverage cans are quite popular. They are light and easily compacted and can often be redeemed at your local supermarket for five or 10 cents a piece.

Beyond bagging up the recyclable cans in your home, you can collect them from your workplace, friends, and family members. Or you might find many after an event, such as a block party or community concert.

2. Glass Bottles

As with cans, you can collect around five to 10 cents for each glass bottle. Some recycling centers may require you to empty and rinse them before returning.

3. Plastic Bottles

Another item to recycle for money: plastic bottles, which are everywhere. Did you know that an estimated 2.5 million of them are being thrown away every hour in the United States? You can earn around five to 10 cents for every plastic bottle recycled, depending on its size.

4. Scrap Metal

Another item that can be recycled for money is scrap metal. It’s one of the more lucrative items to sell. At some scrap yards, you can get over $2 per pound for copper and 40 to 70 cents per pound for aluminum. To find it, look for local construction sites where workers might appreciate your hauling it away, and also check local community boards, Freecycle, Craigslist, and the like.

5. Cardboard

Most of us get a lot of home deliveries these days, resulting in numerous boxes waiting to be recycled. You can get cash for your cardboard, around $45 a ton.

A literal ton of boxes is, of course, a lot, and more than will fit in your garage. But you can research local places that take considerably less. There are websites, like BoxCycle, that will buy your cardboard and reuse it.

If you reach out to friends, family, offices, and restaurants, you can accumulate a big bundle to tie up and sell. You might also check any local college campuses after move-in day.

6. Junk Cars

If you want to cash in on your rusty pickup truck, scrap yards will pay for it, perhaps basing the price on the metal they can recycle from it. There are also a lot of companies that will buy your car regardless of its condition. Do an online search, and review the possibilities. You might find charities that you know and like (such as Habitat for Humanity) have programs in which they pick up your car and you then can take a tax credit.

Recommended: 25 Tax Deductions for Freelancers

7. Clothes

Perhaps it’s time to clean out your closet to make some cash. You can sell your gently used clothes for quick cash. Websites (such as Poshmark, thredUP, eBay, and Etsy), in-person consignment stores, and hybrid businesses such as The RealReal are just some of the options.

8. Cooking Oil

When wondering, “What can I recycle to make money?” bet you never considered the vegetable oil in your kitchen. Okay, this option is mainly for restaurants. But if you own an eatery, there are companies that will pay for rancid or used cooking oil. It can be reused as biofuel.

9. Hair

Hair can be a surprisingly lucrative thing to repurpose. Wig makers and hair extension companies may pay $500 to $2,000 dollars for long, uncolored human hair. Typically, you need at least 10 inches to sell. In addition to searching for wig and extension businesses online, you might even find buyers on CraigsList and Ebay.

10. Makeup Containers

Many beauty supply stores will take back your old lipstick, eyeshadows, and other makeup containers. They’ll recycle it properly and, in many cases, give you cash-back reward points towards a product purchase.

11. Gift Cards

Sometimes, a well-meaning person will give you a gift card you have no intention of using. If you have unused gift cards lying in a drawer, there are websites, like CardCash or ClipKard, that will buy them from you or provide a marketplace where you can sell them.

These websites will collect a fee, however — you won’t get what your card was worth. But better to collect some cash than have the card collect dust in a drawer.

Recommended: Can You Buy Gift Cards with a Credit Card? Everything You Need to Know

12. Electronics

Some electronics contain hazardous materials and can’t be disposed of in your regular trash or recycling. But that doesn’t mean that taking care of e-waste is a losing proposition. Certain companies will offer money for your old electronics — computers, rechargeable batteries, and calculators, to name a few. Apple may let you trade in a laptop, tablet, or other devices for a credit, or recycle it for free.

Just make sure the company isn’t greenwashing. Here’s what greenwashing means: It’s a practice whereby companies profess to be environmentally friendly with their e-waste, but actually aren’t. Do a bit of research before you hand off your electronics.

13. Cell Phones

Need more inspiration for things you can recycle for money? There are financial benefits to not just tossing your old phone. Many cell phone providers like AT&T and Verizon will give you a gift card or vouchers for a phone you’re no longer using. These can be used toward purchasing a new product.

Recommended: Tips for Overcoming Bad Financial Decisions

14. Car Batteries

Has your car battery stopped working? This is another item you can recycle to make money. There are auto part stores and junk yards that will give you cash for your car battery — anywhere from $7 to $30 dollars. Some auto part retailers will give a store credit toward future purchases.

15. Ink Cartridges

There are many office supply stores, including Staples and Office Depot, that will recycle your used ink and toner cartridges and offer cash-back rewards.

There may be limits on how many ink cartridges you can bring back per month and certain spending requirements in order to qualify for the rewards.

16. Wine Corks

Do you love drinking wine? If so, don’t toss the corks when you open a bottle. Some craft enthusiasts, manufacturers, and other businesses are willing to buy popped wine corks. Artistic types can turn them into anything from picture frames to wall art and beyond. By listing yours on sites like Ebay and Craigslist, you can get about 5 cents per cork.

Recommended: Different Ways to Earn More Interest on Your Money

17. Holiday Lights

Those strands of holiday lights that once brought you cheer can now bring you cash. You can box up and ship your old, broken lights to companies such as Holiday LEDS and Christmas Light Source. They’ll typically give you up to 10% or 15% off your next purchase.

18. Toys

You can earn money selling gently used toys to consignment shops, second-hand shops, and online. You’ll give your budget a boost and bring joy to another child.

19. Bed Sheets

Here’s another way to recycle and earn some cash: If you recently upgraded your mattress from, say, a full to a king, you can sell your used bed sheets, as well as your towels, curtains, and other fabrics, on sites such as Facebook Marketplace and Ebay.

Recommended: 37 Places to Sell Your Stuff

20. Tennis Balls

Around 125 million tennis balls get tossed out as garbage in the U.S. every year, but you might be able to make some money on them. One savvy person packaged gently used tennis balls in a four-pack muffin container and wound up earning thousands of dollars for a local charity. See if you can try your own version of her clever idea.

21. Trash

While this way to recycle and earn cash may not directly improve your bank account, it’s a good one to know about. Small businesses, schools, and nonprofits with a lot of garbage can turn it into a fundraising opportunity. Companies such as TerraCycle will donate money to your cause for every piece of trash, often including hard-to-recycle items. There are paid and sponsored opportunities, and your school could earn $50 for every five shipments you send them.

Recommended: 5 Ways to Achieve Financial Security

The Takeaway

With a little research and effort, you can turn your used and unwanted items into extra money. Recycling items can be a big win for your pocketbook and the planet. Whether you focus on collecting cans, unwanted clothes, cardboard, or corks, you can wind up with some extra cash while doing good.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

How many items are recycled a year?

America recycles around 69.1 million tons of material a year. Paper makes up about 66.5% of recycled materials, followed by metals (12.6%), wood (4.5%), plastics (4.5%), and glass (4.4%).

What can you recycle for money?

There are lots of items you can recycle for money: cans, metal, old cars, used clothing, electronics, and even human hair and cooking oil.

What are the non-financial benefits of recycling?

Even if you don’t get paid, recycling reduces the amount of waste sent to a landfill, prevents pollution, and conserves energy and natural resources.

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Photo credit: iStock/Eric Panades Bosch

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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It’s easy to forget about old 401(k) plans when changing to a new job. Some people forget about it because the company that manages it never reminds them. On the other hand, others are aware of their old account, but they’ve been putting off the rollover because it sounds hard.

Many companies don’t make the process easy for customers to roll over their 401(k) accounts from previous jobs. But it can be worth the inconvenience.

By not rolling it over, you might be losing some serious cash. That’s right — losing money, so it’s easy to miss. Here are a few key reasons to prioritize a 401(k) rollover.

3 Reasons to Transfer Your 401(k) to a New Job

It may seem easier to leave your 401(k) as it is and not worry about the hassle of transferring it to a new job. However, the following are three main reasons to rollover a 401(k):

1. You May Be Paying Hidden Fees

All sorts of fees go into effect when you open a 401(k), including record keeping, maintenance, and fund fees. Expressed in a percentage, these fees inform the expense ratio of a plan.

Employers may cover those fees until you leave the company. Once you’re gone, that cost might shift to you without you realizing it. If the fees are too high with your previous employer’s 401(k), rolling over a 401(k) can be advantageous.

Fees matter: When you pay a fee on your 401(k), you’re not just losing the cost of the fee but also all the compound interest that would grow along with it over time. The sooner you roll your plan over, the more you could potentially save.

2. You Might Be Missing Out on Better Investments

If you aren’t happy with the investment options in your old 401(k) and your new employer accepts rollover 401(k)s, you might be able to save money while investing in a broader range of investment vehicles.

401(k) accounts grow at different rates depending on which assets you invest in. If the retirement savings plan at your new company offers a selection of stocks and bonds that better aligns with your financial goals, it might be time to initiate a rollover.

The money sitting in your old 401(k) could grow faster if you roll it over into a new plan — it’s certainly worth investigating the growth rates of each. Keep in mind that investors can lose money when investing, too, so it always makes sense to consider your personal risk tolerance when deciding how to invest in your retirement accounts.

Also, if you leave your 401(k) where it is, you may think about it infrequently, so your portfolio may drift from your desired asset allocation as you age. It’s important to keep tabs on your investments to ensure they are on track and appropriate for your time horizon and goals.

3. You Could Lose Track of Your 401(k) Account

It’s common for people to lose track of old 401(k) accounts. According to some estimates, nearly 20% of all 401(k) assets in the U.S. are lost or missing. Rolling over a 401(k) to your new employer’s plan may be a way to keep track of your retirement assets.

Losing track of a 401(k) account is not necessarily the fault of an investor — it’s just logistics. It’s harder and more time-consuming to juggle multiple retirement accounts than it is to juggle one. Until you retire, you’ll manage two (or more) websites, two usernames and passwords, two investment portfolios, and two growth rates for decades.

And if you leave this next job to go to a third (or a fourth, or a fifth), the 401(k) plans could pile up, creating even more tracking work for you. Plus, when you’re no longer with an employer, you might miss alerts about changes that may occur with an old retirement plan.

Recommended: How to Roll Over Your 401(k)

Do You Have to Rollover Your 401(k) to a New Employer?

You do not necessarily have to roll over your 401(k) to a new employer or rollover your funds into an individual retirement account (IRA). If you are pleased with your old employer’s retirement plan options and fees, you can leave the funds in that 401(k), provided the employer allows it. But if you keep your money in your old employer’s 401(k), you cannot make additional contributions to the account.

If you have between $1,000 and $5,000 in your old employer’s 401(k) account, the employer may roll over your account into an IRA if you do not choose to receive the money or roll it over yourself. If you have less than $1,000 in your 401(k), the employer may send you a check of the funds, with less than 20% income tax withholding, if you do not choose to roll it over within 60 days of leaving the employer.

Recommended: What is an IRA and How Does it Work?

What to Do With Your 401(k) After Getting a New Job

When you get a new job, and you have a 401(k) from your previous employer, you have several options for what to do with the money. As mentioned above, you can leave the money in your old employer’s 401(k) plan. But if you don’t like your old employer’s 401(k) plan and options, you can do one of the following:

Roll Over a 401(k) to Your New Employer’s Plan

If your new employer offers a 401(k) plan and you are eligible to participate, you can roll the money over from your old plan to your new plan. Consolidating your 401(k)s can help you manage all of your retirement savings in one place, but it’s important to compare the fees, investment options, and other features of each plan before making a decision.

Rolling over a 401(k) might seem intimidating or inconvenient at first, especially if you’re moving onto your second job and this is the first time you’ll be rolling over a 401(k). The actual process of rolling over a 401(k) isn’t too complicated once you’ve decided where your existing funds will go.

Roll Over a 401(k) to an IRA

An IRA is another option for your 401(k) funds. Rolling a 401(k) into an IRA can give you more control over your investments and potentially lower fees, but they do not come with employer-provided benefits, such as matching contributions.

Recommended: IRA vs 401(k): What Is the Difference?

Cash Out Early

There is always the option of cashing out your 401(k). Should you choose to cash out your 401(k) and you’re younger than 59 ½ years old, you will have to pay taxes on the money, and perhaps an additional 10% early withdrawal fee.

There are some circumstances when the 10% fee is waived (but not the income tax), such as when the funds will be used for eligible medical expenses, among other circumstances.

What Happens to Your 401(k) if You’ve Been Fired?

If you’ve been fired, your 401(k) account is typically unaffected, and you will still have access to the funds you’ve contributed to the account and vested employer contributions, known as the 401(k) vested balance. However, you lose your right to any remaining unvested funds following voluntary or involuntary termination.

Nonetheless, the rules regarding your access to the funds may depend on the terms of the specific 401(k) plan and the reason for your termination.

Recommended: What Happens to Your 401(k) When You Leave a Job?

How Long Do You Have to Transfer Your 401(k)?

If you are rolling over your 401(k) to a new employer’s plan or an IRA, you generally have 60 days from the date you receive the funds to deposit them into the new account. If you do not complete the rollover within 60 days, the funds will be considered a distribution and subject to taxes and penalties if you are under the age of 59 ½.

Advantages of Rolling Over Your 401(k)

Rolling over your 401(k) to a new plan can benefit your overall financial plan. Here are a few ways this transition might help your financial well-being.

One Place for Tax-Deferred Money

Transferring your 401(k) to your new employer’s plan can help consolidate your tax-deferred dollars into one account. Keeping track of and managing one account may simplify your money management efforts.

A Streamlined Investment Strategy

Not only does consolidating your previous 401(k) with your new 401(k) make money management more straightforward, it can also streamline your investment strategies.

Financial Service Offerings

Some 401(k) plans offer financial services, such as financial advisor consultations, to help employees achieve their retirement goals. If your previous employer didn’t provide this service and your new plan does, taking advantage of this offering may help you achieve an investment plan that meets your exact goals rather than a standardized option.

Disadvantages of Transferring 401(k) to a New Job

While there are several advantages to a 401(k) rollover to a new job, there are also some potential disadvantages. Some drawbacks of rolling over a 401(k) from a previous employer to a new employer’s plan include the following:

•   Loss of certain investment options: The new employer’s plan may offer different investment options than the previous one, limiting your ability to diversify your portfolio.

•   Increased fees: The new employer’s plan may have higher fees associated with it, which could reduce the overall growth of your investment over time.

•   Delays: The process of rolling over your 401(k) can take time, which could cause delays in accessing your funds.

How to Roll Over Your 401(k)

So, how do you transfer your 401(k) to a new job? If you decide to roll your funds into your new employer’s 401(k), you’ll most likely need to:

1.    Contact the plan administrator to arrange the rollover. You may need to choose the types of investment you would like before you initiate the rollover. If not, you can take a lump-sum transfer and allocate the funds gradually to different investments of your choosing.

2.    Complete any forms required by your employer for the rollover.

3.    Request that your former plan administrator sends the funds via electronic transfer or a check so you can move the funds directly to the new plan administrator.

You may have to wait until your employer’s next open enrollment period to complete the rollover, but you might consider using that time to research the plan’s investment options so you’ll be ready when the time comes.

401(k) Rollover Rules

You may select a direct, trustee-to-trustee, or indirect rollover when requesting a transfer. With a direct rollover, the check is made out to the financial institution (for your benefit). Because the funds are directly deposited into the new account, no taxes are withheld. Similarly, a trustee-to-trustee transfer occurs between plan administrators but the funds change hands electronically.

With an indirect rollover, the check is payable to you, with 20% withheld for taxes. You’ll have 60 days to roll over the funds (80% of your previous plan) into an IRA or other retirement plan. If you want to contribute the full amount of your previous plan, you can add money to bring the lump contribution back up to the balance before rollover. At that point, you’d be able to count the 20% withheld as taxes paid.

Rolling Over a 401(k) Into an IRA

If you choose to roll your 401(k) funds into an IRA that’s not employer-sponsored, a direct rollover is a method that takes most of the guesswork out of the transfer. This means the funds will be taken from your previous account and rolled directly into the new one.

Doing it this way should prevent your previous lender from sending you a check, resulting in unforeseen early withdrawal tax situations.

Opening a new retirement account online is relatively straightforward, but there are some steps to opening an IRA that might be worth reviewing before you start. Once your funds are rolled over, you can choose the investments that work for your retirement goals.

Recommended: Rollover IRA vs. Traditional IRA: What’s the Difference?

Here are the general steps to roll over a 401(k) into an IRA:

1.    Choose an IRA custodian: This is the financial institution that will hold your IRA account. Some popular choices include brokerage firms, banks, and credit unions.

2.    Open an IRA account: Once you have chosen an IRA custodian, you need to open an IRA account. You will need to provide personal information such as your name, address, and Social Security number.

3.    Request a 401(k) distribution: Contact the plan administrator of your old employer’s 401(k) and request a distribution of your account balance. You will need to specify that you want to do a “direct rollover” or “trustee-to-trustee” transfer to your new IRA account, since these are the most straight forward transfers.

4.    Provide IRA custodian information: Give your old employer’s 401(k) plan administrator the IRA custodian’s name, address, and account information, so they know where to send the funds.

5.    Wait for the funds to be transferred: The process of transferring funds can take several weeks, so be patient.

6.    Monitor the account: Once the rollover is complete, monitor your IRA account to ensure that it has been funded and that the balance is correct.

7.    Invest your funds: Once the funds have been transferred to your IRA account, you will need to invest with the transferred funds.

Remember that your 401(k) plan administrator may have specific procedures for rolling over your account, so be sure to follow their instructions. Also, there are some rules to follow, such as the 60 days rollover rule; it’s essential to consider these to avoid penalties.

The Takeaway

There are many benefits to rolling over a 401(k) after switching jobs, including streamlining your retirement accounts and directing your money to suit your individual financial needs and goals. While some may view it as inconvenient, going through the process, whether you want to roll over a 401(k) into your new employer’s plan or an IRA, may help you build wealth for retirement.

If you have an old 401(k) you’d like to roll over to an online IRA, SoFi Invest® can help. With a SoFi Roth or Traditional IRA, investors can access investment options, member services, and our robust suite of planning and investment tools. And SoFi makes the 401(k) rollover process seamless and straightforward — with no need to watch the mail for your 401(k) check. There are no rollover fees, and you can complete your 401(k) rollover quickly and easily.

Help grow your nest egg with a SoFi IRA.

FAQ

Should I roll over my 401(k) to new employer?

Rolling over your 401(k) to your new employer may be a good idea if the new plan offers better investment choices or if consolidation leads to lower account fees. Another benefit is convenience — it’s easier to manage one account than two. That said, if control is most important to you, rolling over your 401(k) to an IRA may be the better option.

How long do you have to move your 401(k) after leaving a job?

You typically have 60 days from the date of distribution to roll over your 401(k) from your previous employer to an IRA or another employer’s plan. Otherwise, it will be considered a taxable distribution and may be subject to penalties. However, some 401(k) plans may have different deadlines for rolling over your funds, so check with your plan administrator for specific details.

How do I roll over my 401(k) from my old job to my new job?

To roll over your 401(k) from your old job to your new job, you should contact the plan administrator of your new employer’s 401(k) plan and request a direct rollover or trustee-to-trustee transfer from your old plan to your new plan. Provide the necessary account and personal information and follow the instructions provided by the plan administrator to complete the rollover process.

What happens if I don’t roll over my 401(k) from my previous employer?

You generally are not required to roll over a 401(k) from a previous employer to your new employer’s 401(k) or an IRA. However, some experts recommend rolling over a 401(k) to a single account to simplify your retirement investments.

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