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In recent years, online banking services such as SoFi have exploded on the scene, offering high-interest savings accounts, no-minimum checking accounts, and a variety of other financial options, including investing and retirement savings. By eschewing brick-and-mortar locations for an online-only presence, services such as SoFi Invest introduced a new generation of clients to the financial world, a generation accustomed to doing nearly everything on their mobile devices via app services. SoFi began as an investment company, offering micro-investing options to individuals with limited funds. From there, it evolved into a full-fledged financial service offering a wide range of products. The ability to begin saving for retirement with an Individual Retirement Account (IRA) is one of them. SoFi Invest’s IRA account opening process is one of the simplest ways to start investing for retirement. If you have questions about opening an IRA account on SoFi, or want to know how to open an IRA account on SoFi Invest, read on.
How to Open an IRA Account on SoFi Invest
As with any financial account, a new IRA must be opened with pay stubs, a state-issued photo ID, a Social Security number, and the most recent tax return. Opening an IRA account on SoFi Invest is quick and easy with the following steps.
- First, select the IRA that meets your needs best. There are numerous types of IRAs, so choose the one with which you feel the most comfortable.
- Second, go to SoFI website for instructions on how to open an IRA account on SoFi Invest, and open the desired account. SoFi allows account holders to transfer funds from other financial institutions upon account activation, as well as set up monthly or annual contributions. You can also transfer an existing 401(k) to an IRA.
- Third, invest and contribute to your account. If you establish a Roth IRA, you should be aware of the annual contribution limits based on your income. As part of their retirement account, IRAs permit investors to purchase mutual funds, stocks, and bonds. Choose your own IRA portfolio, or allow SoFi Invest to select one for you. Account holders can choose between active (user managed) and automated management scenarios.
Retirement planning does not have to be complicated. SoFi Invest makes opening an IRA account simple and quick. Regardless of your age, you should have a retirement plan in place as investments often require time to mature. You do not even need to know how to open an IRA account on SoFi Invest to get started. As long as you can make monthly contributions to your IRA, no matter how small, your golden years will be considerably more comfortable.
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1. What distinguishes an IRA from a savings account?
IRAs use investments in stocks and mutual funds to grow the account for retirement, while savings accounts only get very low interest and rarely grow much over time.
2. Are there various types of IRAs?
The Traditional IRA, Roth IRA, and Simplified Employee Pension (SEP) IRA are the three types of IRA accounts. A traditional IRA allows you to deduct your contributions from your current year’s taxes and does not require a minimum annual income to open, whereas opening a Roth IRA has income restrictions. SEP IRAs are for self-employed individuals.
3. Can I have more than one IRA account?
Yes, although the IRS continues to impose limits on taxable contributions to multiple accounts. Consult a financial planner before pursuing this course of action.
4. If I do not know how to open an IRA account on SoFi Invest, is there live support to help?
Yes, users can call (855) 525-SOFI (7634) for assistance.
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