Personal Finance News
SoFi Offering Limited Time 401(k) Rollover Bonus
SoFi is encouraging employees to roll over their 401(k)s by offering a special matching offer.
About the SoFi 401(k) rollover bonus:
For a limited time, customers can earn a 1% match when rolling over a 401(k) to a SoFi IRA. This means that those who roll over $50,000 can earn a $500 bonus, rolling over a $100,000 account can earn $1,000, etc. The offer is valid both for those who already have a SoFi IRA account and those who want to open one — but existing customers must ensure that they use the offer link to start their rollover.
To qualify for this bonus, customers must roll over at least $20,000. This offer is set to end on August 15th, 2024 and if a rollover call is required, that must be completed by September 15th.
For its rollover program, SoFi has partnered with Capitalize. Using this service, customers can initiate and complete an account transfer completely digitally.
About 401(k) rollovers:
When an employee leaves a job with an employer-sponsored 401(k), they have a few options for that account. In many cases, employees — intentionally or not — end up leaving their funds in their 401(k) while no longer contributing to their accounts. Alternatively, though, employees can choose to roll their funds over to an IRA. Furthermore, although IRA contributions do have annual caps, this does not apply to rollovers.
Other options that those with old 401(k) accounts have include rolling over funds to a new employer’s 401(k) or cashing out their account. That said, for those under the age of 59 1/2, cashing out a 401(k) may result in tax penalties and other implications. Therefore, a rollover option is often advised.
Similar offers:
This current SoFi 1% match offer is comparable to one that Robinhood has. However, Robinhood does have other restrictions and rules regarding their bonus funds (namely how long you need to retain your balance in order to keep them). Notably, both Robinhood and SoFi partner with Capitalize for their rollover options.
My thoughts:
According to SoFi, “abandoned” 401(k) account funds exceed $1.65 trillion! That’s likely because employees simply forget about accounts they may have after leaving a previous employer. In fact, just last week, I had a friend ask me what to do about a 401(k) he had from a job a few years ago that he hadn’t done anything with.
Ultimately, whether you take advantage of this offer or not, let this serve as a reminder to check up on any 401(k) accounts you may have floating around and consider rolling them over into an IRA that you can direct.
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