FinTech News
SoFi and Capitalize Announce Enhanced 401(k) Rollover Feature
Two FinTechs are deepening their partnership to benefit consumers looking to recover their old 401(k)s.
About the Expanded Integration:
This week, SoFi and Capitalize announced an expansion of their collaboration. While SoFi’s platform has long utilized Capitalize’s services, this update will make it easier for customers to locate and transfer 401(k)s they may have had from former employers.
As Capitalize explains, SoFi is now implementing the Embedded Rollerover API, allowing users to seamlessly find these 401(k) accounts and roll them over to a SoFi IRA without leaving the SoFi mobile app or desktop site. The process will also now be “substantially faster” and can be completed with less friction. This enhanced feature is available to all SoFi members. Moreover, SoFi currently offers customers a 1% match on all rollover funds.
In addition to working with SoFi, Capitalize also partners with the likes of Robinhood, Charles Schwab, Betterment, and more. Alternatively, customers can locate and transfer their old 401(k)s for free using Capitalize’s site.
What They’re Saying:
In a press release announcing the update, SoFi’s VP and head of SoFi Invest Ryan Burke stated, ” At SoFi, we’re committed to helping our members make the most of their retirement savings – and that includes making it easier to transfer, consolidate and manage those savings. Our deepened integration with Capitalize allows us to offer a more seamless, transparent rollover experience that meets the expectations of today’s digital-first consumers while supporting our broader mission to help members build long-term wealth.”
Meanwhile, Capitalize CEO and co-founder Gaurav Sharma said, “Savers today deserve better than the legacy 401(k) rollover process. We’re thrilled to deepen our integration with SoFi through our modern Rollover API, and together help SoFi members better save for retirement by finding and consolidating their 401(k) savings seamlessly.”
My Thoughts:
Capitalize points out that an estimated $1.65 trillion in assets sit in 401(k) accounts that workers may not realize they have (or know where to find them). That’s why I really love the idea behind Capitalize and think it’s awesome that they regularly partner so closely with other FinTechs. In fact, I almost wish I had a missing 401(k) floating in the ether so that I could try their platform out in earnest.
Based purely on their mission, I wish Capitalize continued success — and, even if you’re preferred brokerage doesn’t utilize their services, I’d recommend checking out their site to see if they can help you find and recover your retirement account funds.
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