How to Transfer a 401k from Fidelity to SoFi Invest

You’re not locked into your current 401k provider forever. Over time, your financial goals may shift—or you might find that another platform offers investment options or tools that better align with your current strategy. Making a change can be part of optimizing your retirement savings over the long term.

At Carry, we want to make financial decisions feel more manageable, even if you’re handling them outside our platform. This guide breaks down the steps to transfer your 401k from Fidelity to SoFi Invest smoothly and penalty-free. Please note that while we try to provide the most up-to-date information, these processes are subject to change without notice, so be sure to check with your provider before moving forward.

Step 1: Understand Your Current 401k Situation

Before starting the transfer process, you need to review your existing Fidelity 401k account. Check your current balance, investment allocations, and whether your plan permits rollovers. Most 401k plans do, but checking your specific plan’s eligibility is essential.

✏️ Hypothetical Example: If you have $50,000 in your Fidelity 401k with investments in mutual funds and index funds, record those details before initiating the transfer to ensure a smooth transition. 

Step 2: Open a SoFi Invest Retirement Account

Create a new retirement account with SoFi Invest. You’ll choose between a Traditional or Roth IRA depending on your existing 401k and tax status. This step typically takes 10–15 minutes and will require some standard personal details:

✅ Social Security Number

✅ Government-issued photo ID

✅ Employment and contact information

✅ Bank account details for funding

📝 Note: Verify that your new SoFi account is set up as a rollover IRA to maintain the tax-advantaged status of your retirement funds.

Step 3: Initiate the Rollover Process

Once your SoFi IRA is established, you can initiate the rollover process. SoFi partners with Capitalize to facilitate 401(k) rollovers. Request a direct rollover to avoid potential tax complications.

After initiating the rollover with SoFi, contact Fidelity to inform them of the impending transfer and provide any additional information they may require to process the rollover. You can do this online through your account or by calling their customer service. 

✏️ Hypothetical Example: A direct rollover moves funds electronically from Fidelity to SoFi, reducing the risk of unexpected tax penalties.

Key information you’ll need to provide:

✅ Your new SoFi IRA account number

✅ SoFi’s transfer agent details

✅ Your personal identification information

Step 4: Complete Transfer Documentation

Fidelity may require transfer authorization forms to process the rollover. Make sure all personal and account information matches to prevent errors or delays.

📝 Note:  Save a copy of all submitted forms and request written confirmation when possible.

Step 5: Choose Your Transfer Method

You’ll generally choose between:

Step 6: Understand Potential Transfer Fees

Always confirm potential costs with both financial institutions:

✏️ Hypothetical Example: Some plans might charge a $50-$100 administrative fee for processing the rollover.

Step 7: Manage Tax Implications

When executed correctly, a direct rollover is generally not a taxable event. However, it’s advisable to consult a tax professional for personalized advice.

📝 Timing is critical: Complete the rollover within 60 days to avoid taxes and potential penalties.

Step 8: Verify and Confirm Transfer

After submitting your request, monitor both your Fidelity and SoFi accounts for status updates. Most rollovers take 5–10 business days to complete.

Tracking steps:

✅ Track transfer confirmation numbers

✅ Check account balances to verify full transfer

✅ Ensure investments are reallocated as desired on the new platform

📌 If you need any additional guidance, be sure to check out these related articles:

Final Thoughts

Transferring your 401k from Fidelity to SoFi Invest is generally a manageable process, but it requires attention to detail. Key takeaways include the importance of completing a direct rollover to avoid potential tax consequences, verifying your identity and account information with both institutions, and following each step carefully to ensure a successful transfer. While most rollovers do not involve direct fees, always confirm current terms with both providers to avoid surprises.

✅ Next steps:

📌 Want to dive deeper? Here are some other helpful (and free) resources:

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Disclaimer:

The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.

The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.

To access investment advisory services through Carry Advisors, you must be a client of Vibes on an eligible membership plan. For more information about Carry Advisors’ investment advisory services, please see our Form [ADV Part 2A] (https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=916200) brochure and [Form CRS] (https://reports.adviserinfo.sec.gov/crs/crs_323620.pdf) or through the SEC’s website at [www.adviserinfo.sec.gov] (http://www.adviserinfo.sec.gov/).