Opening an IRA on SoFi is a straightforward process that offers modern investors flexibility, low fees, and the opportunity to earn a 1% bonus on their contributions or rollovers. Whether you’re interested in a Roth IRA, a Traditional IRA, or a SEP IRA for your small business, SoFi makes it easy to get started. This detailed guide will walk you through every step of the process—from creating an account to funding it and buying or selling stocks inside your IRA.
Start at SoFi’s Website
To begin, head over to SoFi website. Right away, you’ll notice a banner advertising the 1% IRA Match program. This promotion means SoFi will add 1% to your IRA when you transfer funds into your account. For example, if you roll over $20,000, you’ll receive an additional $200. If you contribute the annual limit—$7,000 or $8,000 depending on your age—you’ll get an extra $70 to $80 added to your IRA. Even a 1% bonus can add up over time, especially when compounded.
To move forward, click on “Get 1% Match.” If you already have a SoFi account, the process will be a bit simpler. For those starting from scratch, you’ll need to sign up by clicking “New to SoFi? Sign Up.” Enter your first and last name, email, and choose a password. Once done, you’ll be welcomed into the SoFi dashboard—but note, your IRA account is not yet open.
Opening the IRA Account
From the SoFi dashboard, navigate to the “Invest” section either from the top menu or through the main dashboard options. Scroll down until you find a box promoting the 1% bonus for IRA contributions. Click “Open an Account.”
You will now see different types of investment accounts: self-directed brokerage accounts, Robo-advisors (automated investing), and both self-directed and Robo IRAs. If you plan to manage your IRA yourself, select the self-directed IRA option.
You’ll be given a choice between three IRA types:
- Traditional IRA
- Roth IRA
- SEP IRA
If you’re self-employed or a small business owner, the SEP IRA could be an excellent option, as it allows employers to make tax-deductible contributions for themselves and their employees. However, the majority of individuals will be choosing between the Roth IRA and Traditional IRA.
Traditional IRA vs. Roth IRA
Before moving forward, it’s crucial to understand the differences between a Roth IRA and a Traditional IRA:
- Roth IRA: Contributions are made with after-tax dollars. However, your qualified withdrawals are entirely tax-free. Roth IRAs also have income limits and do not require minimum distributions.
- Traditional IRA: Contributions may be tax-deductible depending on your income and whether you or your spouse are covered by a retirement plan at work. However, your withdrawals in retirement are taxed. Traditional IRAs have no income limits for contributions, but they require you to start taking minimum distributions beginning at age 73.
For the purpose of this guide, we’ll proceed with opening a Roth IRA, though the steps are nearly identical for a Traditional IRA.
Providing Personal and Financial Information
Click on “Roth IRA” to begin. You’ll need to enter personal details including your address, employment status, annual income, citizenship, date of birth, Social Security number, and phone number. A six-digit code will be sent via text—enter that code to verify your phone number.
Next, you’ll go through a brief tax check. Answer the questions based on your personal tax situation. You’ll also be presented with three compliance-related statements—these pertain to whether you or a family member are associated with FINRA, own more than 10% of a public company, or have any other financial affiliations that must be disclosed. If none apply, just proceed to the next step.
You’ll then have the option to add a trusted contact. This step is optional and can be skipped for later.
Choosing Account Features
SoFi will ask if you’d like to enroll in two optional features:
- Brokerage Cash Program: This feature automatically moves any uninvested cash into interest-bearing accounts at partner banks. Your funds remain FDIC-insured and easily accessible, similar to a savings account.
- Share Lending Program: This lets SoFi lend out your stocks to other investors (typically short sellers), and you earn interest on those lent shares. The trade-off is that you might temporarily lose voting rights associated with those shares.
If you’re unsure, the safest and most conservative choice is the Brokerage Cash Program, especially if you plan to hold cash while deciding where to invest.
Agree to the legal disclosures to finalize your account creation. Congratulations—your SoFi IRA account is now officially open.
Funding Your IRA
You now need to fund your account. SoFi offers four funding options:
- Connect a bank account
- Transfer assets from another broker (ACAT transfer)
- Wire funds
- Mail a check
The simplest and quickest method is connecting your bank account using SoFi’s integration with Plaid. In the popup window, log into your bank account, confirm the connection, and authorize the transfer. In this guide, the user connected their Capital One account. Once linked, choose the amount you’d like to deposit. In this example, the deposit was $30. Click “Review,” confirm the details, and click “Add Money.”
In some cases, SoFi may ask for additional identity verification. This usually involves scanning your driver’s license or ID and taking a quick selfie. The process is fast and secure.
Buying Stocks or ETFs in Your IRA
Once your funds are in, you’re ready to start investing. Buying and selling inside your IRA is the same as it is for a standard investment account. From your SoFi dashboard, click “Invest” to open your investment interface.
Although SoFi’s app is their primary platform, you can still use the website to trade. To place a trade, search for the stock or ETF ticker. In this example, the user chose to buy one share of SoFi Technologies (SOFI). On the stock’s page, click “Buy.” You’ll be prompted to choose between buying by share amount or dollar amount. SoFi allows fractional investing starting at just $5, making it accessible for those with smaller budgets.
Select the amount you want to invest and the type of order—typically, “Market Price” is the simplest for beginners. Click “Preview,” confirm your selection, and then “Buy.” Your trade will be processed immediately if the market is open.
Once your purchase is complete, you can return to your dashboard to view your holdings. You’ll see a breakdown of your total account value, market gains, and dividends. Your investments will be listed, showing the quantity and market value of each security.
Selling Stocks or ETFs
To sell, simply click on the stock or ETF in your portfolio. You’ll be taken to the trading screen. Click “Sell,” enter the number of shares or dollar amount, and choose your order type. Click “Review,” then “Sell” to confirm.
Opening an IRA on SoFi – Final Thoughts
Opening an IRA on SoFi is a simple process that even novice investors can handle. From the attractive 1% match promotion to the user-friendly platform and the ability to invest with as little as $5, SoFi offers a flexible and beginner-friendly experience. Whether you’re looking to manage your retirement savings actively or just want a reliable place to start, SoFi’s IRA options—Roth, Traditional, and SEP—make it easy to take control of your financial future. Always remember to review your choices carefully and, if needed, consult a financial advisor to ensure your retirement plan aligns with your long-term goals.
