Update 10/23/24: Deal is back, no end date listed.
Update 8/21/24: Extended to 9/15
The Offer
- SoFi is offering a 1% unlimited match on 401(k) which are rolled over into a SoFi IRA (traditional or Roth).
The Fine Print
- Note: To receive the bonus, roll over a minimum of $20,000.
- Offer ends 8/15/24.
- Rollover must be completed via Capitalize’s rollover application by either scheduling a rollover call or submitting a rollover request by August 15, 2024. If a rollover call is required, the appointment must occur by September 15, 2024.
- The 1% Rollover match will be treated as interest earned on the account and won’t impact IRA contribution limits.
- Automated IRA and Automated Roth IRA (offered by SoFi Wealth, LLC), Active IRA and Active Roth IRA (offered by SoFi Securities, LLC) are eligible for 1% match.
- As long as you hold your eligible funds for at least 2 years from the close of the Offer Period (August 15th, 2024), the bonus is yours to keep. If your deposit is removed prior to the end of the two year Eligibility Period, SoFi reserves the right to remove the corresponding proportion of the 1% Match from your account. Your IRA contributions are savings for retirement, and you’ll incur penalties if you take your funds out early, so make your best effort to keep them there till you retire.
- Bonuses will be paid within 60 days of the last day of the month in which the rollover funds settle in your SoFi Invest account.
Our Verdict
1% unlimited match with a 2-year hold period is a great deal for someone who plans to roll funds over from 401(k) to an IRA. Rolling over a 401(k) is somewhat niche and so we won’t add this to our list of Best Brokerage Bonuses.
Hat tip to Mithridel
Does Solo 401K qualify for this?
How much interest rate does SoFi give on uninvested Money ?
0%
Don’t forget 401k assets are pretty much judgment proof. Depending on your State, you may not have this protection or protection is capped with an IRA. I’m not saying don’t convert just understand the entire picture.
I recall reading about a case, I think it was in California, where a judgement creditor was trying to go after a person’s IRA which included some assets from a previous 401k rollover/conversion. The judge ruled that the 401k assets converted to the IRA are still federally protected from a judgement creditor because they originated in an ERISA-qualified 401k plan and can be traced back to that plan.
In addition to the 60-day wait for the bonus there is also a 60-day hold on the rolled over funds, in case you for whatever reason do want to transfer ( ACAT) or withdraw.
(This comment is brought to you by my failed attempt to triple my bonus by transferring to Robinhood.)
Wanted to throw my DP out here for others using Capitalize to rollover their 401k to SoFi. The Roth portion of my 401k was deposited into my SoFi Roth IRA as expected but my pretax portion didn’t rollover to my SoFi trad IRA like it was supposed to. Instead it showed up in my Brokerage account with Ally. I didn’t give Capitalize this account information at all so I’m not even sure how that was possible. Obviously this could be a headache to undo and a taxable event if not resolved ASAP. Even if it gets corrected I can see SoFi trying not to pay the 1% bonus. What a cluster fruck! Be careful!!!
Anyone able roll over an IRA and get the bonus?
This offer is for poors. You should not roll over a 401k to an IRA. Makes the backdoor trad to roth IRA rollover more complicated and not worth it. Your trad should always be at 0 and you should roll the max contribution amount to a roth every year.
Isn’t this only worth it if you are in a low tax bracket? I wouldn’t blanket recommend that everyone should do backdoor roths yearly. Talk about poors.
Roth IRA contributions are worth it when you are in both a low tax bracket and high tax bracket. Low is good to lock in the tax savings and be able to pull out the funds and earnings tax free later. High is good because you’ll be over the income limits for deducting contributions to a Traditional IRA if you are participating in a workplace 401k or other retirement plan, so saving tax on the earnings growth (and hedging against future tax rate increases) is still better than holding in a brokerage account. In the high income case you’ve already maxed out your Traditional 401k contributions so some tax savings on what is left is better than none.
The highest federal tax brackets are 32% when you hit $230k and 35% when you hit $500k+. So people are hedging that their future retirement income (which tends to be less than while working) will be taxed at the same or higher rates. Unlikely to me given the political climate but a small hedge seems fine. Only 5% or so of workers are making more than $230k/year so, again, these conversions seem to only apply to a small minority.
For high income, it’s not hedging tax brackets. The backdoor Roth in this case is after you’ve already maxed out every other “regular” retirement vehicle. If you don’t do backdoor Roth, these dollars instead go into a regular taxable brokerage account. Roth IRA vs. taxable brokerage is a no-brainer.
Unless your 401k contributions are to a Roth 401k. Then it shouldn’t matter.
@Chuck this has been extended to 9/15
Ive scheduled a rollover under this offer but I am still thinking it makes more sense to go with 3.5% from Webull. I know Webull is 5 years vs 2 years here but can someone help me understand what I could do with my Sofi IRA funds after 2 years that would make it worth giving up the extra 2.5% from Webull?
Its not like Ill be withdrawing the money until retirement anyway.. Can someone please help educate me.
Although you don’t plan on taking a distribution until retirement, you may want to transfer to another brokerage after year 2 to take advantage of another bonus.
If so, the question is whether that hypothetical bonus would be better than the 2.5% you’d get from WeBull for another 3 years.
Thanks Justin! Doesn’t seem like anyone offers transfer bonuses high enough that would beat the 2.5% I’d get from keeping it in Webull? But ill do some homework to confirm.