New Partnership Will Help Robinhood Customers Find and Consolidate Old 401(k)s, Reducing the $1.4 Trillion Currently Held in Left Behind 401(k) Accounts
Capitalize, the award-winning platform to find and transfer retirement accounts, today announced a new partnership with Robinhood Markets, Inc (NASDAQ: HOOD). Capitalize’s partnership with Robinhood Retirement will help customers find and roll over legacy 401(k) accounts into Robinhood’s new individual retirement accounts (IRA). Additionally, Robinhood will be featured on Capitalize’s leading IRA marketplace as a potential destination for users looking to consolidate their legacy 401(k) assets.
“Since we launched Robinhood Retirement last year, we’ve seen close to half a million customers take advantage of our IRA, the only IRA in the market with a 1% annual match. This partnership will make it much simpler and easier for Americans to roll over their funds,” said Steve Quirk, Chief Brokerage Officer of Robinhood. “To kick things off, we are giving folks an additional 1% on every dollar they transfer in from external retirement accounts until April 18.”
“Americans have traditionally found it very hard to track and consolidate their retirement savings given the archaic rollover process. Partners like Robinhood understand the hurdle this presents to growing wealth and want to help their users more effectively save for retirement,” said Gaurav Sharma, CEO of Capitalize. “We are grateful for the trust that Robinhood has put in our product and team.”
Robinhood joins a growing number of leading IRA providers using Capitalize’s enterprise rollover solution. Capitalize’s combination of proprietary technology and scaled operations help customers of IRA providers find legacy 401(k)s and seamlessly roll them over to fund new or existing IRAs through an enterprise version of the Capitalize rollover platform. Capitalize introduced its enterprise rollover solution in 2021 as an extension of its award-winning consumer rollover platform launched widely in 2020.
Each year, millions of Americans prematurely cash-out their 401(k) accounts at the point of job change or leave them behind. According to a research paper by Capitalize and the Center for Retirement Research (CRR), The True Cost of Forgotten 401(k) Accounts, there are now over 24 million 401(k)s left behind with former employers holding over $1.35 trillion in assets. The difficulty in finding and rolling over these assets after changing employers continues to be a significant hurdle to adequately saving for retirement.
Since launching in 2020, the Capitalize platform has supported a rapidly growing number of Americans looking to consolidate their assets, and has significantly increased its share of the more than $700 billion rolled over into IRAs annually. The firm’s significant rollover volume growth has been driven by the addition of new strategic IRA partners to its marketplace and the adoption of its enterprise solution by IRA and other retirement services providers.
About Capitalize
Capitalize is a New York-based technology company that helps consumers find and roll over their old 401(k) accounts through an easy-to-use online platform. Capitalize’s free platform manages the entire 401(k) rollover process, using proprietary technology and delightful customer service to dramatically simplify the process of transferring and managing retirement accounts. Capitalize was recognized as a World Changing Idea by Fast Company in 2022 and as one of TIME’s 100 Best Inventions of 2021. www.hicapitalize.com
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Contacts
Media
Aditi Bhatia
Capitalize
aditi.bhatia@hicapitalize.com
