Jul
09
2024
Open a SEP IRA
SoFi Blog
Tips and news—
for your financial moves.
Jul
09
2024
Jul
08
2024
SEP IRA
{/* SEP IRA */}
Learn how a SEP IRA is a practical savings option for business owners.
Saving for retirement shouldn’t be a hassle for small business owners or self-employed individuals. Prepare for your future with a SEP IRA.
For other IRA options, check out SoFi’s Roth IRA and traditional IRA accounts.
{/* What is a sep ira*/}
What is a SEP IRA?
A Simplified Employee Pension (SEP) IRA is a retirement account—similar to a traditional IRA—for self-employed individuals and small business owners. It lets you make tax-deductible contributions and grow your savings tax-deferred until retirement.
{/* how a sep ira works*/}
How does a SEP IRA work?
Who’s eligible for a
SoFi SEP IRA?
To be eligible for a SoFi SEP IRA, you need to either be self-employed or a small business owner. SoFi doesn’t support multi-participant SEP IRAs. If you have employees, they aren’t eligible.
Who contributes funds to a SEP IRA?
As the employer, you contribute funds to your own SEP IRA.
Contribution
limits
In 2025, you can contribute up to 25% of your total net earnings with a maximum of $70,000. In 2026, you can contribute up to 25% of your total net earnings with a maximum of $72,000.
Withdrawals
You may be subject to a 10% penalty if you withdraw before age 59 ½. Required minimum distributions begin at age 72 (or age 73, if you reach age 72 after Dec. 31, 2022).
{/* RTBs*/}
Why choose a SoFi SEP IRA.
Tax-deferred earnings.
With a SEP IRA, your retirement savings won’t be taxed until you withdraw.
Contribute more.
The contribution limits of a SEP IRA are much higher than a traditional IRA.
Various investment options.
From stocks, ETFs, alternative assets and more, there are a variety of investment options to choose from.
Easy and flexible.
There are no fees to establish a SoFi SEP IRA. Other fees apply. Plus, the plan is easy to manage and doesn’t require much paperwork.
{/* how to open*/}
How to open a SEP IRA with SoFi:
-
Select your IRA account type.
Select SEP IRA as your account option.
-
Select how you’d like to invest.
You have the option to invest your money exactly how you want to or you can share your goals with us and we’ll do it for you.
-
Open an account.
Open an investment account through SoFi and share a few personal details.
Open a SEP IRA
Get more small business retirement resources.
See more investing articles
FAQs
Both SEP IRAs and solo 401(k)s offer tax benefits and saving options for retirement. However there are a few differences. SEP IRAs have higher contribution limits and are a better option for small businesses that have employees (note that SoFi doesn’t support multi-participant IRAs). Solo 401(k)s offer Roth options and loans.
While a SEP IRA may be a great option for small business owners, there are a few considerations to keep in mind:
• There are penalties for early withdrawals.
• No catch-up contributions, however, the contribution limits are much higher for SEP IRAs.
• You can’t take a loan from your SEP IRA savings.
• There isn’t a Roth option.
No. You can open a SoFi SEP IRA at no cost.
In 2025, you can contribute up to 25% of your net earnings, but no more than $70,000 to a SEP IRA. In 2026, you can contribute up to 25% of your net earnings, but no more than $72,000 to a SEP IRA.
You’ll pay income taxes when you withdraw in retirement. You may also be subject to a 10% tax penalty for withdrawing before age 59 ½.
A SoFi SEP IRA account holder will pay taxes on their withdrawals during retirement. For multi-participant SEP IRAs, employers can claim a tax deduction for contributions they make to their employees SEP IRAs. SoFi doesn’t offer multi-participant SEP IRAs, however.
Similar to other retirement plans, you can withdraw your contributions and earnings any time, but you may have to pay a tax penalty if you withdraw before age 59 ½.
Yes, you can have a SEP IRA without employees. In fact, SoFi only offers solo SEP IRAs.
{/* Closing CTA */}
Save more for retirement
with a SEP IRA today.
Open a SEP IRA
Home > Online Investing > IRA Accounts > SEP IRA
Jul
08
2024
Jul
05
2024
Small Business Startup Loans
{/* SMB Business Startup Loans 7/29 */}
{/* https://www.sofi.com/small-business-loans/startup-business-loans */}
{/* Hero */}
STARTUP BUSINESS LOANS
Get started today with a small business startup loan.
Just one search on our marketplace could help you find financing options to accelerate your growing business.
Search for financing
(without impacting your credit score)†
SoFi’s marketplace is owned and operated by SoFi Lending Corp. Expand for Advertising Disclosures.
expand={
/>
Advertising Disclosures: The
preliminary options presented on this
site are from lenders and providers
that pay SoFi compensation for
marketing their products and services.
This affects whether a product or
service is presented on this site. SoFi
does not include all products and
services in the market. All rates, terms,
and conditions vary by provider. See
SoFi Lending Corp. licensing
information below.
{/* Why shop SoFi’s marketplace for the funds your startup needs? */}
Why shop SoFi’s marketplace for the funds your startup needs?
-
Search lenders.
Explore options in one place with no impact to your credit score.†
-
Get up to $2 million.
Large or small, grow your business with funding that’s a fit for you.
-
Fast funding.
Receive funds as soon as the same day you’re approved.*
-
Save time.
You could get a quote in minutes with just one search.
Get started
{/* It’s fast and easy to explore financing for your startup business with SoFi’s marketplace. */}
It’s fast and easy to explore financing for your startup business with SoFi’s marketplace.
-
Shop in one place.
Use our marketplace search to look for small business financing quotes.
-
Discover your options.
Financing quotes may include lines of credit, term loans, and other options.
-
Get funded.
You could receive funds as soon as the same day you’re approved.*
Get started
{/* What is a startup loan? */}
What is a startup loan?
Startup loans can be any business loan that helps a new business finance their operations. In some situations, a startup loan can be a specific loan structure. These can sometimes require more collateral or be a more expensive way to borrow money, but may be easier to qualify for as a new business.
In many cases, people simply apply for traditional business loans or financing options—just as a startup.
SoFi’s marketplace is a way to look for startup business financing options to quickly fund your new business, including SBA loans, term loans, lines of credit, and more.
Get started
(without impacting your credit score)†
{/* What types of business loans are for startups*/}
What types of business loans are for startups?
There are a variety of loan options and types of financing if you are a small business.
Beyond startup loans, several business financing options can be used by startups who qualify.
{/* Term loans slide 1 */}
Term loans
Term loans are what people usually expect a traditional business loan to be. You’re approved for a loan amount, receive the funds in a lump sum, and pay back the loan over a specified period (or term) at a set interest rate.
Term loan criteria varies by lender, but most will usually require startups to be operational for at least six months to a year with proven consistent cash flow before they can qualify. So these types of loans may be better for startups that are already operating, not for those initially launching.
Search for financing
(without impacting your credit score)†
{/*SBA loans Slide 2*/}
SBA 7(a) loans
SBA 7(a) loans are government-backed loans available through commercial lenders. Because the U.S. Small Business Administration guarantees a portion of SBA loans, these may be an affordable option for businesses in early stages.
Loan amounts go up to $5 million, but will vary by lender. Eligibility factors include how the business generates income, its credit history, and where it operates. It must be U.S.-based, operating for profit, and be considered small under SBA size requirements.
Search for financing
(without impacting your credit score)†
{/* Business Line of Credit Slide 3*/}
Business line of credit
A business line of credit (LOC) gives you on-demand financing to help cover operational expenses or financial emergencies. Lines of credit work more like a credit card, where the provider sets a credit limit and you repay (with interest) only on what you use. You can reaccess the credit line as you repay.
A startup may qualify for a short-term LOC. You may need to secure the financing with collateral, such as real estate or other company assets.
Search for financing
(without impacting your credit score)†
{/* Microloans Slide 4*/}
Microloans
Microloans are small-amount business loans—usually less than $50,000. Terms can be up to six years.
Microloans are designed for newly established businesses, making them a good option for startup financing. Both collateral and a personal guarantee may be required. They may be backed by the SBA or offered by nonprofit organizations specializing in helping small businesses get funding.
Search for financing
(without impacting your credit score)†
{/* Equipment financing Slide 5*/}
Equipment financing
Equipment loans are business loans you use to purchase business equipment, and they are typically secured by the assets you purchase with the funds. Equipment loans are not limited to use on heavy machinery—they can also can be used for office tools, furniture, or other equipment needed to operate your business.
Search for financing
(without impacting your credit score)†
{/* Merchant cash advance Slide 6*/}
Merchant cash advance
A merchant cash advance (MCA) is not a loan, but can be an option for your startup business if you have significant daily debt and credit card sales.
A merchant cash advance provider advances you a lump sum of cash in exchange for a percentage of your future daily credit card and debit card sales. While this option may be beneficial for certain businesses, this type of funding can be expensive and will impact the profits of your sales until repaid.
Search for financing
(without impacting your credit score)†
{/*Invoice factoring Slide 7*/}
Invoice factoring
If your startup already has revenue coming in via invoices, invoice factoring may be a way to help with your cash flow. Invoice factoring companies base your approval on your clients’ credit scores and repayment history, not your own, making them more viable for startups.
With invoice factoring, you sell your outstanding invoices to a lender. The lender pays your business a percentage of your outstanding invoices and collects payments from your customer. Once your customer pays the invoice, you get the remainder, minus the factoring fee. Keep in mind: This can be costly, and you typically pay more the longer an invoice goes unpaid.
Search for financing
(without impacting your credit score)†
{/*FAQs*/}
FAQs
A number of financing options may be available for newly launched businesses with existing operations. The process of getting a startup business loan will vary by financial institution and financing type, as will qualification requirements. As a startup with limited financial records and credit history, it may be challenging to find external financing as many lenders want to see proof that you have been operating for at least a year and have revenue. As a best practice, consider how much financing you need and which type is right for your situation, check your personal and business credit scores, prepare documentation and have a business plan ready, do your research, and consider your options to find the deal that works for you.
All lenders have their own eligibility requirements. Typical factors that most lenders look at when evaluating small business loan applications include personal and business credit scores, business age, revenue and cash flow, your business registration, and operating status. You will want to have a business bank account separate from your personal banking and checking.
See all FAQs
{/* What is SoFi’s marketplace? */}
What is SoFi’s marketplace?
SoFi’s marketplace is our way to help members shop for business financing. While SoFi doesn’t provide business loans directly, our marketplace may help you quickly explore the financing solutions you need. You could find a quote from a provider in minutes with one easy search.
Search for financing
{/* horizon */}
{/* Fast and easy. Search for equipment financing in minutes. */}
Search business financing quotes in minutes.
Grow your startup business with the capital it needs. See your financing options today.
Get started
(without impacting your credit score)†
Stay up to date on the latest business news and stock market happenings.