Capitalize and SoFi are expanding their partnership to add 401(k) consolidation for participants.
Under the Capitalize Embedded Rollover API in the SoFi mobile app, SoFi members will be able to find legacy 401(k) accounts and transfer them into their SoFi Individual Retirement Accounts (IRAs).
The recent integration is said to improve the rollover experience for SoFi members, including a “faster and lower-friction process to consolidate retirement assets.” Past research from Capitalize has shown that while 401(k) rollovers are popular among participants, many are left frustrated by archaic processes that make it difficult to move their savings. According to those findings, nearly 80% of savers said they are unable to complete a rollover without the help of a professional.
As a result, an estimated $1.65 trillion in assets are left behind in 401(k) accounts, with close to $1 trillion rolling over annually.
“Savers today deserve better than the legacy 401(k) rollover process,” said Gaurav Sharma, CEO and co-founder of Capitalize. “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.”
SoFi is the latest institution to adopt Capitalize’s Embedded Rollover API tool, following investing platform Public and digital investment tool Webull’s integration of the feature.
“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,” added Ryan Burke, vice president and head of SoFi Invest. “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.”
The offering is currently available to all SoFi members. SoFi, a financial technology services platform, currently has over 10.9 million members.
SEE ALSO:
Capitalize Digital Rollover Tech Coming to Webull Platform
Outdated 401(k) Rollover Processes Challenge, Frustrate Retirement Savers
Capitalize and Public to Offer 401(k) Rollover Solution
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.