Personal Finance News
SoFi Offering 2% Match for IRA Contributions Through Tax Day
With the new year underway and tax season just around the corner, SoFi is encouraging taxpayers to contribute to their IRAs by offering a special bonus.
About the offer:
Today, SoFi unveiled a limited-time deal where customers can earn a bonus when making contributions to their SoFi IRAs. Through April 15th, the brokerage will be offering a 2% IRA Match. This means that, if a customer contributes $5,000 to their SoFi IRA during the promotional period, they’d receive a $100 bonus. According to SoFi, these bonuses will be paid out by the end of April.
This deal applies to any of the IRA options SoFi offers, including Traditional IRAs, Roth IRAs, and SEP IRAs. However, only contributions made via ACH are eligible. This means that ACAT transfers, wires, and rollovers will not earn bonuses at this time.
The April 15th offer cut-off date corresponds to Tax Day in the United States. Taxpayers have until this date to make contributions toward their 2023 limits. For the 2023 tax year, the standard contribution limit is $6,500 while those 50 and over can contribute up to $7,500. As for the 2024 tax year, these limits will increase to $7,000 and $8,000 respectively.
Notably, this SoFi IRA Match offer applies to both 2023 and 2024 tax year contributions, up to the maximum for both.
Meanwhile:
SoFi’s 2% IRA Match deal follows the introduction of a 1% Match last year. That deal came on the heels of a similar feature from Robinhood. With Robinhood’s IRA Match, customers can earn a 1% match on contributions, while those with Robinhood Gold can earn a 3% match. However, with this offer, customers must keep the funds in their account for at least five years or a penalty equal to their Match bonus may be assessed.
My thoughts:
With the 2023 tax year IRA contribution limit being $6,500 (for those under 50) and the 2024 limit being $7,000 (again, for those under 50), SoFi customers who fully max out this offer would see a benefit of $270. That might not sound like much, but it’s actually a pretty decent bonus for the amount of money required. Additionally, unlike Robinhood’s IRA Match, there doesn’t seem to be any requirement to hold the funds with SoFi for a specific amount of time in order to retain the bonus. Speaking of Robinhood, I wouldn’t be surprised if a similar deal were to roll out soon.
To wrap things up, whether you end up taking advantage of this SoFi offer or not, it is worth considering making a 2023 IRA contribution before the April 15th deadline.
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