Acorns is a top investment app for beginners as it offers a hands off experience. The app comes loaded with a number of prebuilt portfolios and a number of features that automate investing such as round ups.
Sofi, on the other hand, offers investors the opportunity to have more control over their investments, though they also offer a number of prebuilt portfolios.
With the ability to choose individual investments as well as a host of other features, some may want to transfer their assets from Acorns to Sofi. Whatever the case may be, if you are hoping to move your assets to Sofi, this is the article for you.
Here, we will highlight the process to transfer from Acorns to Sofi.
Be sure to read our full Sofi review for more!
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Transferring your assets from Acorns to Sofi can be a bit complicated as Acorns does not offer ACATS (Automated Customer Account Transfer Services) transfers. Instead, they offer Non-ACATS transfers. This simply means that they require hard paperwork to execute the transfer.
While Sofi does support ACATS transfer, Acorns does not. Because of this, you will not be able to perform a standard ACATS transfer.
So, you have two options:
While method number one may be easier, it does involve selling your assets. If you sell off your positions for a gain, then you will be responsible for capital gains taxes. We are going to cover both methods in this article. We will start with the first method.
In order to transfer your assets through liquidation, be aware that capital gains taxes may be applicable should you sell your assets for a gain.
The process is fairly straightforward. Let's dive in:
Opening a Sofi account is easy and only takes a few minutes. (If you already have a Sofi account, you can skip to the next step.)
To sell or withdraw your funds from Acorns, you will need to follow the steps below:
Any withdrawal requests placed before 11am PST on a market day typically will be processed the same day. If your request was made after 11am PST on a market day, Acorns will sell shares the following day that markets are open. Additionally, it can take 3-6 business days for withdrawals to transfer to your primary checking account. Regulatory requirements dictate a mandatory two-day settlement period after shares are sold from your Invest account before we transfer funds to your bank account.
To fund your account, you will need to link a bank to your Sofi Invest account. To do so, you will need to navigate to the Sofi Invest section of the app. Then tap "Add Cash." Here, you will need to add a bank account, which will be done through Plaid.
Once you've linked your bank account, you are ready to deposit funds.
You will follow the previous step by clicking on "Add Cash." Follow the steps as prompted and choose an amount to deposit.
Once your account is funded, you are ready to purchase new investments. Within Sofi, you have the option to have Sofi invest your funds for you or choose your own investments.
Acorns does offer a non-ACATS transfer, which is requested through paperwork (either mailed in or emailed). With this method, there are a few things to be aware of. First, you can only transfer whole shares. In other words, if you own 1.5 shares of Apple, then 1 share only would be transferred to Sofi. The remaining 0.5 shares would automatically be liquidated and returned to your bank account.
Second, Acorns does charge a $50 per ETF fee.
In order to get started with this process, you will need to contact Sofi Customer Support. To do so, you'll need a Sofi Invest account. If you already have one, you can start with step 1 below. If you do not have one yet, please follow the first step above in the first method.
While this process may be more complicated than liquidating your assets, it can help you avoid paying capital gains taxes.
Sofi offers investors a massive array of features beyond just investing such as banking, crypto, personal loans, home and auto loans, and more. If you want to transfer your assets to Sofi from Acorns, then you have 2 options.
You can either sell your positions and repurchase in Sofi, or you can initiate a non-ACATS transfer. A non-ACATS transfer is more complicated as you will need to fill out a form and acquire a medallion signature from a local bank.
It is important to be aware that with the first method (liquidating your assets), you may be responsible for capital gains taxes. Additionally, with method 2 (Non-ACATS transfer), you are able to transfer whole shares only. Which means the remaining portion of your assets will be liquidated and returned to your bank.
One of the main benefits to choosing Sofi is their incredible customer support team. If you get stuck in the process, their customer support team is happy to help. With both phone and chat support, getting answers to your questions is easy!