Mon. Dec 6th, 2021

Capitalized review

Moving a 401 (k) from your old employer to a new financial institution can seem like a lot of work. There are also sanctions and tax implications to consider if not done right.

You can hire a financial advisor to help you in this process. But this can be costly. You can also sign up for Capitalize.

Capitalize is a free service that guides people through the transfer process. You may be wondering how they make money. We’ll cover this and more in our full review of Capitalize below.

Capitalized logo
  • Provides expert help for changes to 401 (k) or 403 (b)
  • It takes care of all the necessary formalities on your behalf
  • Completely free service

401 (k) Transfer assistance

What is capitalization?

Capitalize (Capitalize Money, Inc.) is a fake technology that helps people change their 401 (k) s and 403 (b) s. It was founded in May 2019 and is headquartered in New York City. Its founders are Christopher Phillips and Gaurav Sharma (CEO). Capitalize has raised $ 14.1 million through a Series A.

What does it offer?

Using capital letters helps people change their 401 (k) s. It does so at no cost. However, if a person decides to go with one of the IRA providers to the Capitalize platform, the company will receive a commission.

Capitalize will find your 401 (k) or 403 (b) at your former employer and guide you through the process of moving to another financial institution. Currently, Capitalize only supports throwing a 401 (k) in an IRA.

An IRA usually costs less to maintain than a 401 (k) and usually has more investment options. However, if you already have a new 401 (k) with your new employer, please note that Capitalize will not be able to help you incorporate your old 401 (k).

Totally practical experience

If you have never made a 401 (k) change before or do not want to do it yourself, capitalization may be the answer. You will have someone available to see you throughout the process.

Not sure which institution manages your 401 (k)? No problem. All you have to do is tell Capitalize what company you have worked for and it will take you from there. If you cannot immediately find your 401 (k) provider through its database, its human experts will locate it.

Once you have found your 401 (k) and have chosen a new IRA provider, Capitalize will take care of all the paperwork. They will keep you updated throughout the process and notify you when it is fully configured.

Capitalized review

Free use

There are no commissions to use Capitalize. It is a completely free service. Capitalization will be offset if you go with an IRA provider on their platform.

Capitalize has established partnerships with traditional, Roth and self-directed IRA providers. It works with both DIY bag brokers and robbery-advisor platforms.

Capitalized review

It is unclear how many partners Capitalize works with. But here are some names we found during our test:

Depending on the IRA provider you choose, you may have your own fees. You will need to consult the details. Please note that even if you do not choose to go with one of the Capitalize IRA providers, they will still help you for free.

Lack of security information

Capitalize does not say how secure your information is or how much is transferred to any potential IRA provider. For a platform that handles a lot of sensitive personal information, we would like to see a dedicated page that fully details your security practices.

Are there rates?

No: Capitalize is free. The company makes money if you choose one of the IRA providers on their platform.

How do I contact capital letters?

Capitalize does not show any phone numbers. Once you click to start, you’ll see a chat link. You can also contact them using the contact form on the website. I also found [email protected] on their legal page.

Capitalize has a presence on social media Twitter, Facebook and LinkedIn. And it has an impressive 4.9 / 5 rating from 119 reviews on Trustpilot.

How are capital letters compared?

Capitalize really has no direct competition. You can ask your former employer’s 401 (k) administrator to help you. But your responsibility will stop you from taking the money. This allows you to control the passage of the new financial institution. You can then ask the new financial institution for help getting money from your business (and most businesses will be happy to handle it for you when you bring the money to your institution).

In general, a 401 (k) change is not difficult. But it is important that the rules are followed so that they do not incur sanctions or create a taxable event. For people used to managing their money, shooting a 401 (k) will probably be a walk in the park. But for those who aren’t normally as practical with their finances, it can seem overwhelming.

If you are simply looking for resources that can help you choose your new IRA provider, we can help. If you primarily want to invest in stocks and bonds, check out our top traditional and Roth IRAs. For more investment flexibility, check out our favorite self-directed IRAs. And if you want to work with a theft advisor who specializes in managing 401 (k) if IRAs, we recommend that you consider Blooom.

How do I open an account?

To open an account, visit You will see the “Start” buttons on the website. The account opening process has three main steps:

  1. 1

    Locate your 401 (k)

  2. 2

    Choose a destination

  3. 3

    Locate your information.

The process should not take more than five minutes. Expect to provide confidential information, similar to what you can provide when opening a bank account. No income information is required.

Is it safe and secure?

Although the site is encrypted, the company does not disclose how your information is transmitted to IRA providers.

Capitalize does not save any of your money as an investment or as a deposit. Nor does it provide financial advice. For these reasons, Capitalize does not need to be insured by FDIC or SIPC.

Is it worth it?

If you manage your finances on a daily basis, you’ll probably know exactly where all your money is, including your retirement accounts. In fact, you may have already made a 401 (k) change in the past due to the change of employers. For people like you, there may be few benefits to using Capitalize other than saving you some time.

But using Capitalize can be a nuisance for anyone who hasn’t made any 401 (k) changes or who feels intimidated by the process. You will have someone to guide you through each step. In addition, you will gain peace of mind knowing that all the necessary procedures are being handled properly. And, best of all, it won’t cost you a penny.

Functions with capital letters

401 (k) transfer assistance

Consolidate multiple 401 (k) s into an IRA

It goes to the self-directed IRA

Live chat, email and contact form

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.

Source link

Leave a Reply