How much can I contribute to an IRA each year?
The annual contribution limit for a traditional and Roth IRA is $7,000 for 2025 and $7,500 for 2026. Those 50 and older can contribute $8,000 in 2025 and $8,600 in 2026.
The SEP IRA contribution limit for 2025 is 25% of an employee’s total compensation, up to $70,000. The SEP IRA contribution limit for 2026 is 25% of an employee’s total compensation, up to $72,000. Other limitations may apply.
Are IRA contributions tax deductible?
Traditional IRA contributions may be tax-deductible if you meet certain income requirements. Roth IRAs are not tax-deductible.
Learn more: IRA Tax Deduction Rules
What are the withdrawal rules for IRAs?
For traditional IRAs, you can make penalty-free withdrawals once you reach age 59½. Roth IRA contributions can be withdrawn at any time without tax or penalty, for any reason at any age. Investment earnings on Roth contributions can typically be withdrawn, tax-free and without penalty, once the investor reaches the age of 59½, as long as the account has been open for at least a five-year period.
Learn more: Traditional and Roth IRA Withdrawal Rules & Penalties
Can I have an IRA if I have a 401(k)?
Yes, you can have both a 401(k) and an IRA. Note that the two account types have different contribution and withdrawal rules, so be sure to understand those before opening an account.
How do I move my 401(k) to an IRA?
SoFi Invest offers a range of retirement accounts and
401(k) rollover options.
We offer Traditional, Roth, and SEP IRAs, and can help with the rollover process.
What is an IRA match and how does it work?
The IRA Match is an extra 1% that SoFi adds to your IRA for making contributions and rollovers. It does not count toward your annual contribution limits. The pay-out amount for the 1% contribution match is calculated based on each settled deposit up to the annual contribution limits. For example, if you deposit $3,000 into your IRA, your 1% match will be $30. There is no cap or limit on the 401(k) rollover match.
Is the SoFi IRA Match the same as an employer’s 401(k) match?
The SoFi IRA Match and employer 401(k) match both offer matches on retirement investments, but they aren’t the same. For starters, the IRA Matches do not count toward your annual contribution limit. Also, you don’t have to work for SoFi to earn an IRA Match. In contrast, a 401(k) employer match is a contribution that an employer makes to an employee’s retirement account. It is possible to have both an employer 401(k) match, earn the IRA 1% Contribution Match with a SoFi IRA and rollover a 401(k) from a previous employer to a SoFi IRA to earn a 1% Rollover Match.
Is my IRA deposit or 401(k) rollover automatically invested?
It depends. If you want your contributions or rollovers to be automatically invested and rebalanced, you have the option to open a Robo IRA where we’ll build a portfolio for you, based on your investment objectives and risk appetite. If you prefer to choose your investments yourself, you have the option to open an Active IRA. With an Active IRA, don’t forget to place trades to invest your IRA deposits so you don’t leave them as uninvested cash in your account.
Is my 403(b) or 457(b) eligible for the match?
Yes, as long as you completed the rollover via the SoFi platform utilizing this link, your rollover is eligible for the match.
When will I get paid my 1% match?
Bonuses will be paid within 60 days of the last day of the month in which the contributions settle in your SoFi Invest account. NOTE: Your IRA Contribution Match and Rollover Match will be paid out as two separate sums.
What are required minimum distributions (RMDs)?
Required minimum distributions (RMDs) are minimum withdrawals set by the IRS that you must make when you reach a certain age. For traditional IRAs, RMDs kick in the year you turn 72 (73 if you reach age 72 after Dec. 31, 2022).
Can I have multiple IRAs?
Yes, you can have multiple IRAs, but the total amount you contribute to all of your IRAs cannot exceed the annual IRS contribution limits.
How much does it cost to open a SoFi IRA?
There’s no cost to open a SoFi IRA.
What are the fees associated with SoFi retirement accounts?
SoFi retirement accounts don’t have any account fees. However, there may be fees associated with certain ETFs and mutual funds ranging from 0.03% to 0.40%. Other fees apply.
How does SoFi invest my retirement savings?
SoFi offers a variety of investment options for your retirement savings including ETFs, stocks, and more. You can choose to invest in individual investments or you can use SoFi’s automated investing service to create a diversified portfolio that’s tailored to your risk tolerance and investment goals.
Who can open a SoFi IRA?
SoFi IRAs are available to anyone who is a U.S. citizen or resident who’s at least 18 years old and has a valid Social Security number.
What if I already maxed out my annual contributions?
SoFi will match 1% of a customer’s ACH deposits or via cash transfers from SoFi Bank accounts, up to their contribution limit. Contributions over the annual contribution limit will not be matched. Please see examples below:
Example 1: If you have not made any contributions to your IRA for 2025 and contribute $7000 you will be matched 1% of your contribution amount, which is $70.
Example 2: If you have already made a contribution of $2,000 to your IRA for 2025 and contribute an additional $7,000, bringing you over the annual contribution limit, you will be matched 1% of your additional contribution up to the legal limit, which would be $50 if you are below 50 years old, or $60 if you are above 50 years old.
How long do my contributions need to stay in my IRA to remain eligible for SoFi’s match?
As long as you hold your eligible funds for at least five years, the IRA match is yours to keep. If your deposit or rollover is removed prior to the end of the five year Eligibility Period, SoFi will remove a proportional amount of the bonus from the member’s account. The proportional amount is based on the breach in retention value, not retention period. In the event of an ACAT transfer out, there will be an early withdrawal fee for the entire match amount.
Examples:
Scenario 1: If you deposit $7,000 into your IRA account for 2025, you’ll earn a $70 match. If you withdraw $500 less than 5 years from the deposit date, you’ll incur an early withdrawal fee of $4.95.
Scenario 2: If you deposit $7,000 into your IRA account, you’ll earn a $70 match. Your account balance then increases to $10,000 due to investment gains. If you withdraw $500 less than 5 years from the deposit date, you’ll incur an early withdrawal fee of $0 because your equity balance remains above the pre-promotion equity in the account, plus the qualifying deposit and match amount.
Scenario 3: If you deposit $7,000 into your IRA account, you’ll earn a $70 match. Your account balance then decreases to $5,000 due to investment losses. If you withdraw $500 less than 5 years from the deposit date, you’ll incur an early withdrawal fee of $30.39 because your equity balance fell below the pre-promotion equity in the account, plus the qualifying deposit and match amount.
Your IRA investments are savings for retirement, and you’ll incur penalties if you withdraw your funds early, so make your best effort to keep them there till you retire.
What type of IRAs are eligible for the IRA 1% match?
Contributions into Automated IRA, Automated Roth IRA, Active IRA, and Active Roth IRA are eligible for the match promo.
How must the rollover be completed?
The rollover must be completed via the integrated Capitalize rollover experience within the SoFi Invest platform. To begin the rollover process, please click here.
Is there a holding period?
Yes – you must keep the funds in your SoFi IRA for five years from the deposit settlement date. Early withdrawals will be subject to an early withdrawal fee. SoFi will remove a proportional amount of the bonus from the member’s account based on the breach in retention value. In the event of an ACAT transfer out, there will be an early withdrawal fee for the entire match amount.
When will I be paid my 1% match?
The match will be paid out within 5 business days of the transfer being settled, subject to verification of eligibility and compliance with these terms.NOTE: Your IRA Contribution Match and Rollover Match will be paid out as two separate amounts.
