Jul

2024

SEP IRA

By Derek Stratton | Uncategorized | Comments Off

{/* 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.

Open 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

What’s the difference between a solo 401(k) and a SEP IRA?

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.

What are the disadvantages of a SEP IRA?

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.

Does it cost money to open a SEP IRA?

No. You can open a SoFi SEP IRA at no cost.

What are the SEP IRA contribution limits for 2025 and 2026?

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.

When do I pay taxes on 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.

Who pays taxes on a SEP IRA?

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.

Can I cash out my SEP IRA?

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.

Can I have a SEP IRA without employees?

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

2024

Small Business Startup Loans

By Nicholas Wong | 1_Web_Lantern | Comments Off

{/* SMB Business Startup Loans 7/29 */}
{/* https://www.sofi.com/small-business-loans/startup-business-loans */}

{/* Hero */}

STARTUP BUSINESS LOANS

Q: What are the SEP IRA contribution limits for 2024?

In 2024, you can contribute up to 25% of your net earnings, but no more than $69,000.

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

How can you get a business loan for a startup?

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.

What are the requirements for a small business startup loan?

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)^†

Jul

2024

Small Business Equipment Financing

By Nicholas Wong | 1_Web_Lantern | Comments Off

{/* SMB Business Equipment Financing 7/29 */}
{/* https://www.sofi.com/small-business-loans/equipment-financing */}

{/* Hero */}

EQUIPMENT FINANCING

Access the capital your small business needs with equipment financing.

Equipment financing could be a way to help grow and upgrade your business. Search for a quote today on our marketplace.

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 use Sofi’s marketplace to shop equipment financing */}

Why use SoFi’s marketplace to shop equipment financing for your business?

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

{/* SoFi’s marketplace makes searching for equipment financing fast and easy. */}

SoFi’s marketplace makes searching for equipment financing fast and easy.

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 an equipment loan? */}

What is an equipment loan?

An equipment loan is a type of small business loan for the specific purchase of necessary business-related tools, equipment, or appliances.

However, many types of business financing can also be used for equipment financing, not just equipment loans.

SoFi’s marketplace could help you look for business financing providers, including equipment financing companies and equipment loans. See which business financing products and quotes may be available for you.

Get started

(without impacting your credit score)^†

{/*FAQs*/}

Equipment financing FAQs

What is equipment financing?

Equipment financing refers generally to a business loan or financing product used for the goal of purchasing equipment to operate your business. Many business loans or products can be used to finance equipment, including equipment loans, which are a specific type of business loan structure you use to purchase business equipment. It is typically secured by the assets you purchase with the funds. Equipment loans are generally paid off within a few years.

What’s considered equipment can be fairly broad and it is not limited to heavy equipment or machinery, but can be used for office tools, furniture, commercial vehicles, or other equipment needed. Whereas purchasing equipment outright can impact your cash flow, equipment financing may help with purchasing or upgrading needed equipment while making payments in more manageable monthly installments.

How does equipment financing work?

Funds can be used to buy new or used equipment. Depending on the loan structure, the purchased equipment can act as collateral for the loan. Financing may be available for up to 100% of the equipment cost, depending on the lender. Terms vary from lender to lender, but may fall anywhere from 6 months to 10 years.

Some lenders may ask for a personal guarantee in addition to placing a lien on the equipment. A personal guarantee gives the lender permission to seize a business owner’s personal assets in the event that you default on paying back the loan. This reduces the financial risk to lenders and is a common practice for equipment loans.

What are typical terms for equipment financing?

For equipment loans, it is usually short term, which means it will have to be paid off anywhere from 6 months to 3 years. However, some equipment loans will not need to be repaid for 5 or even 10 years. The terms for equipment financing will vary depending on the loan structure, such as if it’s an equipment loan, Small Business Administration (SBA) loan, term loan, or other type of business financing.

What’s the difference between equipment financing and leasing?

The main difference between equipment financing and equipment leasing is who owns the equipment. With equipment financing, the business owner owns the equipment at the end of the loan term. With equipment leasing, the lender owns the equipment and rents it out to the leaseholder. Since you do not own the equipment, it does not act as collateral, which can make this type of financing more risky for lenders.

Can a new business apply for equipment financing?

Yes. While lenders typically like to see at least one year in business, preferably two, and at least $100,000 in annual revenue, you could still qualify for financing as a startup or a new business. This may require detailed documentation, such as your business plan and foreseeable revenue, to give lenders more confidence that you will be able to repay the loan.

What credit score is required for small business equipment financing?

Underwriting requirements and credit score requirements vary by lender. Business credit scores range from 0 to 100 and the higher the credit score, the better your financial position. As for your personal credit, which could also be relevant, a “good” personal credit score starts at 670 with most agencies, and a “good” or “excellent” score typically makes a stronger case for approval. Credit is just one of the criteria a lender evaluates.

See all FAQs

{/* What is SoFi’s marketplace? */}

What is SoFi’s marketplace?

Search for financing

{/* horizon */}

{/* Fast and easy. Search for equipment financing in minutes. */}

Fast and easy. Search for equipment financing in minutes.

Keep your business moving. Look for a provider and see your equipment financing options today.

Get started

(without impacting your credit score)^†

Jul

2024

June 2024 Market Lookback

By Mario Ismailanji | | Comments Off

Hopes of a soft landing continued to carry the stock market to new all-time highs.

Jun

2024

Roth IRA

By Derek Stratton | Uncategorized | Comments Off

{/* Roth IRA */}

Roth IRA

Start saving for retirement with a Roth IRA.

By investing in a Roth IRA, you won’t pay taxes on potential earnings and can enjoy the freedom of withdrawing your money in retirement without worrying about paying taxes on it.

Open a Roth IRA

For other IRA options, check out SoFi’s Traditional IRA and SEP IRA accounts.

{/* What is an ira*/}

What is a Roth IRA?

A Roth IRA is an individual retirement account that offers potential tax advantages. Unlike traditional IRAs, you make contributions to a Roth IRA with after-tax dollars, meaning they are not tax deductible. However, qualified withdrawals in retirement are tax free, including both contributions and investment earnings. So, it’s a way to save for the future while enjoying tax-free benefits.

Learn more: Roth vs Traditional IRA Comparison

{/* Horizon */}

{/* RTBs*/}

How a Roth IRA can help you save for retirement.

Tax-free benefits.

Both your contributions and whatever you earn on them are tax free when you withdraw from your Roth IRA in retirement.

Convenient access to your money.

You can withdraw contributions at any time,  tax- and penalty-free. Note that earnings are subject  to different rules.

No required withdrawals.

Unlike traditional IRAs, Roth IRAs do not require that you withdraw a certain amount of money each year after reaching age 73.

Beneficiaries aren’t taxed.

Rest easy knowing your beneficiaries can make tax-free withdrawals if they inherit your Roth IRA.

{/* investment approach */}

Choose the investment approach for your Roth IRA.

Automated Roth IRA: < br/>A hands-off approach.

Unsure about your investment options or where to start? We’re here to help. Just share your retirement and investment goals with us, and our robo-advisor will create and maintain a personalized portfolio specifically tailored to your Roth IRA.

Open an Automated Roth IRA

Self-Directed Roth IRA: < br/>Do it yourself.

If you prefer to take control and choose your own investments for your Roth IRA, consider our self-directed investing option. Manage your investments directly and enjoy zero commission on your trades.

Open a Self-Directed Roth IRA

{/* why choose sofi*/}

Why choose a SoFi Roth IRA?

There are lots of reasons to love Roth IRAs — and even more when you open one with SoFi.

Self-directed or automated investing.

Take control with self-directed investments or opt for an automated investing Roth IRA and we’ll suggest a portfolio based on your goals and risk tolerance.
Get personalized advice and guidance.

Book a complimentary 30-min session with one of our financial planners. They can answer your questions and help you build an investment plan that aligns with your retirement goals.
Diversify your portfolio.

Choose from a wide range of investment options with no commissions. Other fees apply.

• Stocks

• ETFs

• Mutual funds

• Bonds

• Alternative assets

• IPOs
Low fees and no minimums.

We don’t charge account open or maintenance fees**. And you can invest at your own pace without worrying about account minimums.

{/* how to open */}

How to open a Roth IRA with SoFi:

Choose an IRA account type.

Select Roth IRA. Other options include traditional and SEP.
Select how you’d like to invest.

You choose how hands on you want to be with your investments—do it yourself (Active Roth IRA) or have us do it for you (Automated Roth IRA).
Open an account.

After you’ve opened your account, add money to your IRA by making a single or recurring deposit from your bank account using SoFi’s secure interface.

Open a Roth IRA

{/* backdoor roth */}

Income too high? Consider using the “back door.”

If your income exceeds the limit for Roth IRA contributions, you can utilize the ‘back door’ strategy. This involves initially placing funds in a traditional IRA (which has no income cap) and then moving those funds to a Roth IRA using a Roth conversion. When you go this route, you have to pay taxes on deducted contributions and any earnings, but you can enjoy tax-free withdrawals later.

Contact us for the paperwork, and once you’ve submitted it we’ll take care of the Roth IRA conversion. Remember, this is a taxable event, so you may want to consult a financial advisor and/or a tax professional before moving forward with a backdoor Roth as it cannot be reversed.

Learn more about backdoor Roth IRAs.

Get more Roth IRA resources and education.

See more investing articles

FAQs

Am I eligible to open a Roth IRA?

Whether you’re eligible to open and contribute to a Roth IRA depends on your income. If your income exceeds the limits set by the IRS, you cannot contribute to a Roth IRA.< br/>< br/>In 2025, single filers earning less than $150,000 and married couples filing jointly with incomes under $236,000 are eligible to make full contributions to a Roth IRA. If your Modified Adjusted Gross Income (MAGI) falls between $150,000 and $165,000 as a single filer, or between $236,000 and $246,000 for joint filers, your contribution amount will be reduced.

In 2026, single filers earning less than $153,000 and married couples filing jointly with incomes under $242,000 are eligible to make full contributions to a Roth IRA. If your MAGI falls between $153,000 and $168,000 as a single filer, or between $242,000 and $252,000 for joint filers, your contribution amount will be reduced.

How much can I contribute each year to a Roth IRA?

In 2025, the contribution limits for Roth IRAs are $7,000 per year if you’re under 50, or $8,000 per year if you’re 50 or older. In 2026, the contribution limits for Roth IRAs are $7,500 per year if you’re under 50, or $8,600 per year if you’re 50 or older. Remember that income caps may also apply (see above).

How much money do you need to start a Roth IRA?

SoFi Roth IRAs do not charge anything to open the account, but you need $5 to choose investments in your Active Invest Roth IRA ($50 to invest in an Automated Invest Roth IRA).

How is a Roth IRA different from a traditional IRA?

The key distinction between a Roth IRA and a traditional IRA lies in the tax treatment. With a Roth IRA, you make contributions with after-tax money, allowing for tax-free withdrawals of your contributions and earnings in retirement. Your contributions to a traditional IRA are made with pre-tax money. So, a traditional IRA offers tax deductions on contributions, but withdrawals are taxed as income. Essentially, Roth IRAs offer tax-free withdrawals and traditional IRAs offer tax-deferred withdrawals.

Can I have both a Roth and Traditional IRA?

Yes, you can have both a Roth and Traditional IRA. However, it’s important to understand that the contribution limits apply across all your IRAs combined. For the tax year 2025, the total contribution limit is $7,000 for all your IRAs ($8,000 if you are 50 or older); for 2026, the total contribution limit is $7,500 for all your IRAs ($8,600 if you are 50 or older). Keep this in mind when planning contributions and considering the tax implications for each account.

Is it worth opening a Roth IRA?

Roth IRAs offer unique benefits for retirement savings, such as tax-free withdrawals in retirement. Here are some considerations to help you decide if opening a Roth IRA is right for you:

Unlike traditional IRAs, contributions to a Roth IRA are made with after-tax dollars. This means you won’t receive a tax deduction for your contributions. The benefit, however, is that withdrawals during retirement are tax-free, provided certain conditions are met.
Roth IRAs have income restrictions which may limit or prohibit contributions if your income is too high. For instance, individuals with a modified adjusted gross income (MAGI) of $165,000 or more, and joint filers with a MAGI of $246,000 or more, are not eligible to contribute in 2025. In 2026, single filers with a MAGI of $168,000 or more, and joint filers with a MAGI of $252,000 or more are not eligible to contribute.
While you can withdraw your contributions to a Roth IRA at any time without penalty, withdrawing earnings before age 59 ½ and before the account has been open for five years may result in penalties and taxes. This is important to consider if you think you may need access to these funds before retirement.

What are the fees and costs associated with a SoFi Roth IRA?

SoFi Roth IRAs have no maintenance fees and low minimums, so you can save for retirement without unnecessary costs weighing you down. Please view our fee disclosure for a complete listing of fees.

Can I transfer my retirement account to a SoFi Roth IRA?

Yes! To transfer funds from a Roth IRA at another brokerage, you’ll just need to submit an Automated Customer Account Transfer (ACAT) request form via the SoFi app or website. To roll over funds from a Roth 401(k), you’ll need to initiate the transfer with the institution currently managing your Roth 401(k). Note that you cannot roll over funds from a traditional IRA or 401(k) into a SoFi Roth IRA.

How do I access my SoFi Roth IRA account online or through the app?

Start by logging into your account. Then, under “Invest” select your Roth IRA. From there, you can manage your account and see its performance.

Can you withdraw from a Roth IRA?

You can withdraw contributions from your Roth IRA at any time without paying penalties or taxes. However, if you withdraw any earnings before they’ve been in your Roth IRA for five years, you could owe taxes and a 10% penalty on the amount you withdraw.

Is a Roth IRA better than a 401(k)?

Deciding if a Roth IRA is better than a 401I(k) depends on your personal circumstances and goals. Because you make contributions with after-tax money, a Roth IRA could be a good option for those in lower tax brackets now. If your employer offers a 401(k) with contribution matching, you could increase your contributions, essentially for free. Keep in mind, some employers offer Roth 401(k)s, which allow you to reap the benefits of both types of retirement accounts.

What are the tax benefits of having a Roth IRA?

One of the main tax benefits of a Roth IRA is that qualified withdrawals in retirement are tax free, including both contributions and investment earnings. Additionally, the earnings from your Roth IRA are not subject to income tax. That means the amount you put in today is yours in retirement — plus whatever those investments earn.

What is a Roth IRA conversion and how does it work?

A Roth IRA conversion occurs when you move retirement funds from a traditional IRA or 401(k) account into a Roth account. Only post-tax contributions can go into a Roth IRA, so you’ll need to deduct taxes from traditional IRA funds before converting to a Roth account. You can convert by withdrawing from your traditional IRA and contributing to a Roth IRA yourself, or your financial institution can do it for you.

What is a backdoor Roth and how does it work?

A backdoor Roth IRA is a way for high earners who aren’t eligible to contribute to a Roth IRA to still enjoy the benefits of a Roth account. Instead of contributing directly, individuals can contribute to a traditional IRA and then convert it to a Roth IRA. This process includes withdrawing traditional IRA funds, paying the taxes on earnings, and then moving the rest of the money into a Roth IRA.

{/* Closing CTA */}

Save for retirement the smart way.

There’s lots to love about a Roth IRA. Put your money to work today for tax-free withdrawals in the future.

Open a Roth IRA

SoFi > Online Investing > IRA Accounts > Roth IRA

SoFi Blog

Tips and news—for your financial moves.

SEP IRA

What is a SEP IRA?

How does a SEP IRA work?

Why choose a SoFi SEP IRA.

How to open a SEP IRA with SoFi:

Select your IRA account type.

Select how you’d like to invest.

Open an account.

Get more small business retirement resources.

FAQs

Save more for retirement with a SEP IRA today.

Small Business Startup Loans

Why shop SoFi’s marketplace for the funds your startup needs?

Search lenders.

Get up to $2 million.

Fast funding.

Save time.

It’s fast and easy to explore financing for your startup business with SoFi’s marketplace.

Shop in one place.

Discover your options.

Get funded.

What is a startup loan?

What types of business loans are for startups?

FAQs

What is SoFi’s marketplace?

Search business financing quotes in minutes.

Small Business Equipment Financing

Why use SoFi’s marketplace to shop equipment financing for your business?

Search lenders.

Get up to $2 million.

Fast funding.

Save time.

SoFi’s marketplace makes searching for equipment financing fast and easy.

Shop in one place.

Discover your options.

Get funded.

What is an equipment loan?

Equipment financing FAQs

What is SoFi’s marketplace?

Fast and easy. Search for equipment financing in minutes.

June 2024 Market Lookback

Roth IRA

What is a Roth IRA?

How a Roth IRA can help you save for retirement.

Choose the investment approach for your Roth IRA.

Automated Roth IRA: < br/>A hands-off approach.

Self-Directed Roth IRA: < br/>Do it yourself.

Why choose a SoFi Roth IRA?

Self-directed or automated investing.

Get personalized advice and guidance.

Diversify your portfolio.

Low fees and no minimums.

How to open a Roth IRA with SoFi:

Choose an IRA account type.

Select how you’d like to invest.

Open an account.

Income too high? Consider using the “back door.”

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