Capitalize is a free 401(k) locator and IRA rollover platform. It helps workers find their 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.
Business Insider's personal finance team compared Capitalize to the best IRA rollover platforms. We found it to be a great free online tool for finding old retirement accounts, but it isn't a good choice for those seeking additional financial planning or investment services.
Pros and Cons
Capitalize Pros
- Free service and no fees
- Manages your rollover for you (including administrative work)
- Easily compare IRA options
- Access to Capitalize experts
Capitalize Cons
- Can't roll over assets into a new 401(k) plan
- Limited tools and no brokerage services
Open an Account
- Free to use
- Manages your roll over transfer for you, including administrative work
- Easily compare IRA options from top brokers
- Can’t rollover assets into a new 401(k)
- No asset management
- No market access
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.
- 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.
Compare Capitalize
$0
0%
Traditional IRAs, Roth IRAs, and SEP IRAs
- No minimums or fees
- Certified financial planner access
- No tax-loss harvesting
- Limited investment selection
SoFi is a great choice for traditional IRAs. In addition to other investing, loans and savings options, the advisor provides Roth and SEP IRAs.
SoFi IRA- Consider it if: You're new to investing and want a variety of low-cost retirement, investing, and savings options.
- App store rating: 4.8 iOS/4.3 Android
$0
0% ($5/month for Robinhood Gold)
- Free stock, option, ETF, and cryptocurrency trades; 0.01% APY on uninvested cash for non-Gold users and 4.00% for Gold members
- IPO investing available
- Cash management accounts available
- Website is easy to navigate; advanced charts for all users
- Lack of investing research and trading tools; can only take advantage of professional research if you're a Robinhood Gold member
- App store rating: 4.2 iOS/4.0 Android
- Consider it if: You want to trade crypto and invest in a wide range of stocks and ETFs.
$500
0.25%; 0.06 - 0.13% for low-cost investment funds
Traditional IRAs, Roth IRAs, and SEP IRAs
- Low annual fee for investment accounts; crypto trust investments available
- Tax-loss harvesting
- Mobile app and investing and retirement tools
- Offers traditional, Roth, and SEP IRAs
- You need at least $100,000 to utilize additional investment strategies
- No human advisor access
Wealthfront is one of the best robo-advisor options if you're in search of low-cost automated portfolio management, and one of the best socially responsible investing apps for features like tax-loss harvesting, US direct indexing, and crypto trusts.
Wealthfront IRA- Consider it if: You're looking for goal-based strategies for retirement and other savings goals.
- App store rating: 4.8 iOS/4.6 Android
Capitalize Overview
Capitalize offers "hassle-free" IRA rollovers for old 401(k) plans. It doesn't provide its own brokerage accounts or market access. Instead, it acts as the middleman between existing and forgotten 401(k) accounts.
Capitalize partners with other investing platforms that offer rollovers, including Vanguard, SoFi, and Betterment. It offers unbiased advice and guidance on your rollover. However, Capitalize is not a financial advisor and does not offer individual advice.
Capitalize is free to use, which it makes possible by charging its partner brokerages when you roll over assets from your old 401(k) plan.
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.
Ways to Invest with Capitalize
Capitalize uses human advisors and digital technology to simplify transferring assets from an existing 401(k) or 403(b) into a new IRA. The platform 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 provide 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 will communicate with your old 401(k) provider and roll over your assets to your new account. This includes any required administrative work. You'll be updated throughout the process, and experts can 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:
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. Be mindful of whether the IRA provider you are opening a new account for has minimum balance requirements, annual management fees, and trading fees.
Capitalize Trustworthiness
Capitalize has a B- rating from the Better Business Bureau. BBB ratings range from A+ to F and reflect the bureau's opinion of how well a company interacts with its customers.
There have been no major lawsuits against Capitalize Money LLC in recent years.
Capitalize Alternatives
Here's how Capitalize compares to similar platforms.
Capitalize vs. Beagle
Few platforms offer the same services as Capitalize. However, Beagle is one of them. Both Capitalize and Beagle (formerly Meet Beagle) are investment platforms that offer assistance for 401(k) rollovers. They differ regarding fees and additional services.
Along with facilitating rollovers, Beagle highlights fees in your existing account and allows users to borrow from their old 401(k) or IRA with 0% interest. However, Beagle isn't a free platform like Capitalize. You'll pay $3.99 a month for Beagle, which charges additional fees for a 401(k) loan: an initial loan fee of $99, then a $2 monthly maintenance fee.
Beagle is the better option for asset management and loan access. Capitalize, however, is a better choice for investors who only need 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. Its primary service is the 401(k) tool, which allows you to find your old or lost retirement account from your previous employer. Capitalize offers multiple IRA rollover options to easily compare fees, investment selection, features, and customer ratings.
Does Capitalize cost money?
Capitalize does not cost money. It is a free platform that helps people find old or lost 401(k)s and roll over their assets into a new IRA. The platform also offers free consultations from financial experts about rollovers, but Capitalize's financial experts can not offer individual investment advice.
How does Capitalize make money?
Capitalize does not charge fees for its service; rather, Capitalize makes money from its partner brokerages when 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, 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 platforms to compare account options, fees, ethics, and customer experience when reviewing investment apps. Platforms are given a rating between 1 and 5.
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.
Business Insider's Overall Capitalize Rating
| Feature | Insider rating (out of 5) |
| Fees | 5.00 |
| Account features | 3.50 |
| Access | 4.00 |
| Ethics | 4.50 |
| Customer support | 4.00 |
| Overall score | 4.25 |
Sofi Active Invest: Investments are not FDIC-insured - Are not bank-guaranteed - May lose value - Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers.
SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth's advisory operations, services, and fees is set forth in SoFi Wealth's current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
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