Retirement accounts can be moved between providers as your financial goals and preferences evolve. If you currently hold a Traditional IRA with Charles Schwab and are considering transferring it to SoFi Invest, it’s important to follow the proper steps to ensure the process is smooth and tax-free.
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 Traditional IRA from Charles Schwab 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: Assess Your Current Charles Schwab Traditional IRA
Before initiating a transfer, review the details of your existing Traditional IRA at Charles Schwab. Confirm your account balance, investment holdings, and any potential restrictions or fees that may apply.
A thorough review helps you:
✅ Confirm the exact amount you intend to transfer
✅ Identify whether any assets require liquidation before transfer
✅ Prepare for a smooth transfer process
Step 2: Open a Traditional IRA with SoFi Invest
To receive the transfer, open a Traditional IRA with SoFi Invest. Complete the online application and ensure the new account type matches your Charles Schwab IRA. You’ll typically need to provide:
✅ Social Security Number
✅ Government-issued photo ID
✅ Employment information
✅ Beneficiary details
✏️ Hypothetical Example: John completed his SoFi Invest Traditional IRA application in about 15 minutes, by entering his personal and employment information and naming beneficiaries.
Step 3: Initiate the ACAT Transfer Request
SoFi Invest uses the Automated Customer Account Transfer Service (ACATS) for IRA transfers. After setting up your new account, initiate the transfer request through SoFi’s interface or by contacting customer support.
📝 Important: Be sure the transfer is Traditional IRA to Traditional IRA to avoid tax consequences.
Step 4: Complete the Transfer Paperwork
You may need to submit additional documents, depending on your account details and transfer type:
✅ SoFi Invest transfer request form
✅ Account authorization documents
✅ Specific instructions for Charles Schwab transfer
✏️ Hypothetical Example: Sarah double-checked all form fields before submitting, helping avoid processing delays.
Step 5: Verify Transfer Details
Confirm all transfer details are accurate with both Charles Schwab and SoFi Invest:
✅ Transfer amount matches your intentions
✅ Account types align (Traditional IRA to Traditional IRA)
✅ No tax withholding is selected for direct transfers
✅ Transfer timeline is clearly communicated
📝 Tip: Keep copies of all transfer documentation for your records.
Step 6: Understand Potential Transfer Costs
While SoFi Invest typically doesn’t charge transfer fees, Charles Schwab may charge a $50 fee for a full IRA account transfer. Confirm the exact costs with both financial institutions before proceeding.
Step 7: Tax Considerations
A direct transfer between Traditional IRAs is typically a non-taxable event. However, if the transfer is handled as an indirect rollover, it must be completed within 60 days to avoid taxes and possible early withdrawal penalties.
📝 Reminder: Consult a tax professional to understand how your specific situation may affect tax reporting or deductions.
Step 8: Final Transfer Verification
After initiating the transfer, monitor both your Charles Schwab and SoFi Invest accounts to:
✅ Confirm the funds have been received by SoFi Invest
✅ Verify the amount and account classification
✅ Ensure the transaction reflects accurately in your new IRA
📌 If you need any additional guidance, be sure to check out these related articles:
Final Takeaways
Transferring a Traditional IRA from Charles Schwab to SoFi Invest involves a straightforward process that requires careful attention to detail. The key steps include initiating a direct rollover, confirming that the transfer is between matching account types, (Traditional IRA to Traditional IRA), and completing an Automated Customer Account Transfer (ACAT) request accurately.
While the transfer process is generally simple, double-checking all details and maintaining clear communication with both institutions can help avoid delays or errors. If needed, reach out to customer support for guidance at any point during the transfer. Taking these extra steps helps ensure your retirement savings continue moving in the right direction.
📌 Want to dive deeper? Here are some other helpful (and free) resources:
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.
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