Capitalize To Power Rollovers for Robinhood Retirement Account Holders

Rhea-AI Summary

Capitalize has partnered with Robinhood to help customers locate and consolidate old 401(k)s, addressing the $1.4 trillion in unclaimed assets. This collaboration will simplify the rollover process into Robinhood's individual retirement accounts (IRAs).

Since launching Robinhood Retirement, nearly 500,000 customers have utilized the platform, which offers a unique 1% annual match. To promote this service, Robinhood is providing an extra 1% bonus on transfers from external accounts until April 18. The partnership aims to tackle the challenge of tracking retirement savings, as millions struggle to roll over funds from previous jobs.

Positive

• Partnership with Capitalize to simplify 401(k) rollover process.
• Approximately 500,000 customers have engaged with Robinhood Retirement since its launch.
• Offering an additional 1% on transfers until April 18 enhances customer engagement.
• Robinhood's IRA features a unique 1% annual match.

Negative

• None.

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

NEW YORK--(BUSINESS WIRE)-- 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20230322005296/en/

Media

Aditi Bhatia

Capitalize

aditi.bhatia@hicapitalize.com

Source: Capitalize

FAQ

What is the new partnership between Robinhood and Capitalize?

Robinhood has partnered with Capitalize to help customers easily find and roll over old 401(k) accounts into Robinhood's IRAs.

How much is currently held in forgotten 401(k) accounts?

There is approximately $1.4 trillion currently held in left-behind 401(k) accounts in the U.S.

What bonus is Robinhood offering for rolling over retirement accounts?

Robinhood is offering an additional 1% on every dollar transferred from external retirement accounts until April 18.

How many customers have used Robinhood Retirement?

Since its launch, close to 500,000 customers have utilized Robinhood Retirement.

What unique feature does Robinhood's IRA offer?

Robinhood's IRA offers a 1% annual match, making it distinct in the market.