SoFi Roth IRA Review: Best Investment Account for Retirement?


Jeremy BiberdorfBy: Jeremy Biberdorf

December 21, 2022December 21, 2022

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In a nutshell: SoFi Invest offers Roth IRA accounts to help you make the most of tax-free withdrawals upon retirement. With a choice of active or automated investing with no fees, our SoFi Roth IRA review agrees that this is one of the best ways to grow your retirement fund.

Pros and Cons of SoFi Roth IRA

Pros

  • No trading fees
  • No commission fees
  • No minimum account balances
  • No minimum deposit
  • Broad range of asset classes
  • Active or automated trading

Cons

  • $75 account migration fee
  • Basic research tools

SoFi Invest Roth IRA Review Introduction

When it comes to planning for your retirement, a Roth IRA account enables you to pay tax on your income but benefit from no tax on withdrawals when you retire. If you believe your account is going to grow (and it should!), then this is an extremely tax-efficient way of preparing for your retirement.

SoFi Invest’s main draw is being able to invest without any trading fees, no minimum account balance requirements, and no commissions. In fact, there are no fees at all, including on wire transfers. Considering the fact that annual Roth IRA contribution limits are currently set at $6,000, or $7,000 for those over 50, every dollar counts.

Keep reading our SoFi Roth IRA review to find out more about why this is the ideal platform for a retirement account.

Get Started with SoFi Roth IRA

What is a SoFi Roth IRA?

SoFi was initially launched by business students from Stanford in 2011, but it wasn’t until 2019 that SoFi Invest was launched. Various types of IRAs would be supported soon after.

With more than $12 billion in assets held under the SoFi banner, including SoFi Invest and SoFi Money, investors have quickly jumped onto SoFi automated investing due to their low-fee, no-nonsense approach.

Its position as a roboadvisor means it specializes in helping ordinary people who enter the market for the first time. With their Roth IRA accounts, you can take control of your financial future.

Under SoFi Securities LLC, all Roth IRA accounts are FDIC insured up to $500,000 in securities and $250,000 cash, so you know your money is safe.

SoFi Roth IRA Features

Our SoFi review made it clear that the wide range of investment options provided by this platform are revolutionary. Here are the main features relevant to your SoFi IRA account.

SoFi Automated Investing

SoFi Invest’s flagship feature can also be used for your Roth IRA account. SoFi automated investing allows you to invest with confidence, whether you are a beginner investor or an experienced investor.

When you create a SoFi automated investing account and choose a Roth IRA, you’ll be able to select from 10 prebuilt investment portfolio options and 13 different asset classes complete with asset allocation. All you need to do is determine your own personal risk tolerance.

SoFi investing portfolios consist mainly of Exchange-traded funds (ETFs) from big names, including Vanguard and iShares. They also have their own low-cost ETFs.

One fee you will need to pay is expense ratios. These are levied not by SoFi but by the ETF trading provider. Thankfully, fees are extremely low at just 0.05%.

Fractional Share Trading

Due to the low permitted annual contribution limits, it can be difficult to make your money work for you. Under the current annual limits, that only amounts to two or three shares in Amazon.

SoFi allows fractional share trading, known as “Stock Bits”. Whenever you deposit into your Roth IRA, your money can be automatically invested, so every dollar is constantly gaining exposure to the market and your risk level is kept to a minimum.

Free Access to Financial Advisors

Planning for your retirement is tough. Your decisions now will impact your retirement savings decades from now. Forget traditional financial planners and choose a SoFi financial planner instead.

Every Roth IRA account holder gains access to a qualified financial advisor who can guide you on best practices for your Roth IRA and provide financial advice and advisory services that can maximize your investment gains.

Your human advisor can work with you on creating an investment strategy and offering portfolio recommendations that are in line with your long-term investment goals.

It’s a cool feature not offered by many other investment and trading platforms or financial institutions, at least not for free.

SoFi Roth IRA Fees

Holding a Roth IRA with SoFi doesn’t come with any additional fees. You have the same unlimited access as someone with a standard SoFi Invest account, including:

  • No minimum account balances
  • No minimum deposit
  • No trading fees
  • No annual management fees
  • No commission fees

The only fees involved are the 0.05% ETF expense ratio and a $75 account migration fee if you choose to leave the platform.

SoFi Roth IRA FAQ

If you’re wondering whether opening a Roth IRA with SoFi Investing is the right move, here are the answers to some of the most common questions.

How much can I contribute to my Roth IRA?

These limits are set by the Federal government and are currently $6,000 per year for those under 50 and $7,000 per year for those over 50.

Is my retirement account protected?

Yes, all SoFi Invest accounts are FDIC insured up to $250,000 cash.

Can I actively invest my money?

Yes, you’re not compelled to use SoFi Automated Investing. You can also use SoFi’s Active Invest to create your own custom portfolio.

SoFi Roth IRA: Is it Right for You?

Retirement planning is difficult but this SoFi Roth IRA review believes that this platform has simplified the process.

For beginners, the automated investing option and free access to human advisors are great ways to get started.

Learn more by reading our full SoFi Invest review now.

If you’re ready to create your SoFi Roth IRA, sign up and invest for free now.
Get Started with SoFi Roth IRA

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Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. After working many years in the website marketing industry, he decided to take on blogging full time and also get his finances headed in the right direction. Also check out his contributions to Equities.com and Benzinga.

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