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Capitalize is a free 401(k) locator and IRA rollover platform that helps workers find old employer-sponsored retirement plans and transfer the assets into a new independent retirement arrangement (IRA). Although Capitalize doesn't offer asset management or many additional investment tools, it can greatly help inexperienced investors.
Capitalize
On Capitalize's website
Insider’s Rating
4.49/5
Perks
The fast, easy way to move your old 401(k)s — for free. Capitalize makes rollovers a breeze. From finding your old 401(k)s to helping you pick an IRA, Capitalize can help save you time, money, and hassle.
Account Minimum
None
Fees
None
Pros
- Free to use
- Manages your roll over transfer for you, including administrative work
- Easily compare IRA options from top brokers
Cons
- Can’t rollover assets into a new 401(k)
- No asset management
- No market access
Insider’s Take
Capitalize is a great platform for beginner investors who need assistance rolling over assets from an old 401(k) plan into a new IRA. It's not ideal for folks looking to roll over assets into a new 401(k) plan.
Product Details
- Earn a $75 Amazon gift card when a friend uses your unique referral link to submit a rollover with Capitalize, up to $525 per year.
Introduction to Capitalize
Capitalize offers "hassle-free" IRA rollovers for old 401(k) plans. It doesn't offer its own brokerage accounts or market access. Instead, it acts as the middleman between existing or forgotten 401(k) accounts.
Capitalize partners with other investing platforms that offer rollovers. This includes some of the best rollover IRA platforms, such as Vanguard, SoFi, and Betterment. The platform offers unbiased advice and guidance on your rollover. However, Capitalize is not a financial advisor and does not offer individual advice.
It's best for investors needing assistance finding and rolling over an old 401(k). You'll have to look elsewhere for investment management, a financial plan, or information on different investment vehicles. Capitalize cannot roll over assets into a new 401(k) plan or investment accounts other than IRAs.
See Business Insider's list of the best IRA accounts.
Capitalize Review: Overall Rating
| Feature | Insider rating (out of 5) |
| Fees | 5.00 |
| Account features | 3.25 |
| Access | 5.00 |
| Ethics | 5.00 |
| Customer support | 4.50 |
| Overall score | 4.49 |
How Capitalize Works
Capitalize uses human advisors and digital technology to simplify rolling over assets from an existing 401(k) or 403(b) into a new IRA. It consolidates all your assets into a single IRA to minimize fees and help you keep track of your investments.
There are only three steps needed to use Capitalize:
- Identify your old 401(k): You tell Capitalize where your old 401(k) is being managed. If you don't know, you can put down your old place of employment, and Capitalize will find your 401(k) using its existing database and research.
- Pick a rollover IRA: After filling out a questionnaire on what you're looking for, Capitalize will give you IRA options based on fees, investment options, and other similar factors. The site also assists you in opening a new IRA account. If you have an existing IRA you want to use for your rollover, Capitalize can still help you manage and move those assets.
- Transfer assets: Capitalize takes care of communicating with your old 401(k) and rolling over your assets in your new account. This includes any required administrative work. You'll be updated throughout the process, and experts are available to chat with you anytime.
The processing time for a 401(k) rollover can take several days to several weeks.
Broker IRA Options
Capitalize rates IRAs based on a platform's fees, public rating score, customer support, and ease of use. You can sort through robo-advisor, self-directed, traditional, and Roth IRAs. Depending on the brokerage, you may be able to open a crypto IRA or a SEP IRA.
Capitalize's top brokers for IRA rollover are:
- Betterment
- SoFi Invest
- Robinhood
- E*TRADE
- Vanguard
Capitalize Fees
Capitalize is a free service, meaning you won't have to pay anything for rollover assistance or to receive a consultation from a financial expert.
Pros and Cons of Capitalize
| Pros | Cons |
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While you can schedule a call with one of Capitalize's experts at any point in the process, you may have to wait up to a month. Some customers have complained about long wait times. This may vary depending on your availability.
Capitalize Trustworthiness
Capitalize Money LLC does not currently have a rating with the BBB.BBB ratings range from A+ to F and reflect the bureau's opinion of how well a company interacts with its customers.
According to CrunchBase, Capitalize uses 19 technologies for its website and has received two investor funding rounds.
There have been no major lawsuits against Capitalize Money LLC in recent years.
Capitalize vs. Other 401(k) Rollover Platforms
Capitalize vs. Meet Beagle
Few platforms offer the same services as Capitalize. Both Capitalize and Meet Beagle are investment platforms that offer assistance for 401(k) rollovers. However, they differ regarding fees and additional services.
Unlike Capitalize, which only helps and manages transactions for investors wanting to roll over old 401(k) assets, Meet Beagle uncovers hidden fees from brokerages. It also allows users to borrow from their old 401(k) or IRA with 0% interest. However, Meet Beagle isn't a free platform like Capitalize. You'll pay $3.99 a month with Meet Beagle. A 401(k) loan charges a $2 monthly maintenance fee and an initial fee of $99.
Meet Beagle is the better option for asset management and loan access. Capitalize, however, is a better choice for investors only wanting help transferring assets and finding a good rollover IRA option.
Capitalize FAQs
What is Capitalize, and what services does it offer?
Capitalize is a free 401(k) locator and rollover platform. The Capitalize 401(k) tool allows you to find your old or lost 401(k) from a previous employer and gives you multiple IRA rollover options to easily compare fees, investment selection, features, and customer ratings. It will roll over your assets for you, including any required administrative work.
Is Capitalize a free platform?
Capitalize is a free platform that helps people find old or lost 401(k)s and roll over their assets into a new IRA. The platforms also offer free consultations from financial experts about rollovers. Capitalize 's financial experts can not offer individual investment advice.
How does Capitalize make money?
Capitalize does not charge fees for its service; rather, it makes money from its partner brokerages if you choose to roll over your old 401(k) assets. Capitalize says none of the partnered brokerages are allowed to impact the content on its site, and the fees you pay are never affected, as Capitalize wants to remain independent and honest.
Why You Should Trust Us: How We Reviewed Capitalize
We examined Capitalize using Business Insider's rating methodology for investing platformsto compare account options, fees, ethics, and customer experience when reviewing investment apps.
Investment apps typically offer multiple assets, trading tools, and other resources. Some platforms are better for more advanced investors and active traders, while others may be better for beginners and passive investors. Capitalize was evaluated, focusing on how it performs in each category.
Junior Investing Reporter
Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022.Her love of books, research, crochet, and coffee enriches her day-to-day life.
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