I'm Rolling Over My 401(k) to SoFi® for the 1% Match -- Here's Why

I've got about $64,000 right now sitting in an old 401(k) account from my previous employer. It has pretty low fees, so I've been just letting it sit and grow while I focus on my new employer plan.

But I just learned that SoFi® is offering a 1% match on IRA rollovers. Basically, if I move that $64,000 into a new SoFi® IRA through Capitalize, I'll pocket a $640 bonus -- as long as I follow the eligibility requirements.

Since I write about personal finance for a living, I triple-checked the fine print. Here's why I'm jumping on this offer.

Why I'm moving my old 401(k) to an IRA

I've had five or six employers so far in my career. And every time I've changed jobs, another old 401(k) gets left behind -- just floating out there.

I like rolling over all my old accounts because it keeps things tidy and consolidates all my retirement money. It's way easier to manage and track my progress when everything's in one place.

A few other reasons rolling over to an IRA makes sense:

• Lower (or no) account fees. Many top IRA brokers don't charge account fees, but all my previous employers had sneaky fees baked into my 401(k) plans.
• Wider investment options. IRAs have a lot more flexibility when it comes to choosing investments (although, I'm probably going to stick with boring, low-cost index funds)
• Easier Roth conversions. I'll likely plan conversions later in life as a tax strategy.

And sometimes, brokerages will actually pay you bonuses to move your account over. That's why this SoFi® offer is so enticing -- a 1% match bonus for doing something I already planned to do.

SoFi®'s 1% IRA match offer

SoFi® is currently offering a 1% match on eligible retirement rollovers. That means if you move $50,000 into a new IRA, you'll get a $500 bonus.

In my case, I'm rolling over $64,000 -- so I'll earn $640.

Here's how the 1% match offer works:

• You open a new SoFi® traditional or Roth IRA
• Initiate the rollover through Capitalize, a free service that helps manage the 401(k) rollover process
• SoFi® will match 1% of the transferred amount, paid as a cash bonus into your IRA
• You must keep the funds in your SoFi® IRA for two years and stay invested

The money typically lands in your account within 30 days of the rollover, and it's treated like a cash deposit you can reinvest as you like.

SoFi® lets you choose how involved you want to be with investing. If you're confident in managing your own portfolio, you can go fully self-directed (that's what I'm doing).

But if you'd rather set it and forget it, SoFi® also offers automated investing, which I'm a huge fan of for beginners who don't want to mess with picking funds.

Read our full SoFi Invest® review to learn more about the 1% match, investing options, and whether it's the right fit for you.

Is a rollover the right move for you?

Over the years, I've met so many people who have no clue where their old 401(k)s ended up. It's super common, especially for job hoppers who switch employers every couple years.

Turns out, this happens a lot. Capitalize estimates there are over 29 million forgotten 401(k) accounts in the U.S., holding about $1.65 trillion in assets. That's crazy! And the average balance in those accounts is roughly $55,000.

I totally get why people don't roll them over -- it feels like a hassle. But honestly, it's one of those financial chores that pays off big. You can clean up your finances, get better control of your investments, and maybe save on fees.

And to top it all off, you could snag an offer like SoFi®'s 1% IRA match that gives you an instant reward for doing it.

If you've got an old 401(k) floating around, this could be a good time to track it down and move it where it'll actually work harder for you.

Check out our list of all the best IRA accounts to find the right fit for your rollover.