Betterment & Capitalize Partner to Modernize 401(k) Rollovers

Betterment Will Use Capitalize’s Rollover API To Help Customers Seamlessly Consolidate 401(k) Accounts

NEW YORK--(BUSINESS WIRE)--Betterment, a trusted wealth & savings platform, and Capitalize, the industry’s award-winning platform for digital retirement account transfers, today announced a new partnership to help Betterment customers grow their wealth by more easily finding and consolidating retirement savings accounts.

Through the partnership, Betterment will integrate Capitalize’s Embedded Rollover API directly into its platform, allowing Betterment customers to digitally locate and transfer employer-sponsored retirement accounts, such as 401(k)s, into Individual Retirement Accounts (IRAs) at Betterment. By moving their savings into a Betterment IRA through the Capitalize rollover experience, customers can take advantage of Betterment’s low-cost portfolios and keep track of their assets in a single account over time.

“At Betterment, our mission is to empower people to build wealth with confidence and ease, and retirement plays a critical role in that journey,” said Mike Reust, President at Betterment. “Account rollovers are an important moment for investors, yet the process has remained unnecessarily complex for far too long. We’re excited to partner with Capitalize to help our customers consolidate their 401(k)s in a more modern, intuitive way, so they can stay focused on their long-term goals.”

“We’re excited to partner with Betterment, a company that has consistently raised the bar for thoughtful, goal-based investing and building wealth,” said Gaurav Sharma, CEO and Co-Founder of Capitalize. “Together, we’re addressing one of the biggest gaps in the retirement savings market by ensuring people make the most of their hard-earned 401(k) savings by consolidating them effectively. This partnership reflects a shared commitment to helping Americans grow their wealth using innovative investing and leading technology.”

For millions of Americans, 401(k) accounts are the most important path to accumulating savings for retirement. But confusion and complexity at the point of job change leads to many individuals doing the wrong thing with their accounts, such as prematurely withdrawing savings or leaving them behind for extended periods of time. Recent research suggests that over 30 million 401(k) accounts have been left-behind, and that fees and stale asset allocations can erode savings over time. While many savers intend to roll over their accounts to a new account, only 22% of savers manage to complete a rollover without assistance.

By embedding Capitalize’s rollover technology natively into its platform, Betterment will help customers digitally find legacy retirement accounts, initiate rollover requests, and consolidate their retirement savings all within the Betterment platform, making it easier to manage their long-term goals and investment strategy. Betterment joins a growing number of leading financial institutions leveraging Capitalize’s Embedded Rollover API to deliver a seamless rollover experience for users.

This offering will be available to Betterment’s retail customers in the coming weeks.

About Capitalize

Capitalize is an award-winning platform to help individuals and financial institutions digitally locate and transfer retirement assets, such as 401(k)s. Capitalize’s APIs are used by leading financial institutions to power rollovers natively for their users and our platform is also available to individuals directly. Capitalize helps Americans better save for retirement by ensuring they can easily find, transfer, and keep track of their retirement assets. Capitalize has been recognized as one of TIME’s 100 Best Inventions, one of the World’s Most Innovative Companies by Fast Company, and a Top 50 Fintech by Forbes. For more information about Capitalize, visit www.hicapitalize.com/enterprise.

About Betterment

Betterment is a trusted wealth platform that provides modern, technology-driven solutions for investing, saving, and retirement. We empower customers to build wealth with confidence and ease via automated and self-directed investing, personalized financial advice, and high-yield cash management accounts. Betterment tailors its products and services to three distinct audiences, offering an award-winning web and mobile experience for retail investors, a 401(k) solution for small to mid-sized businesses through Betterment at Work, and an all-in-one custodial platform for independent RIAs through Betterment Advisor Solutions. Betterment helps more than 1 million customers manage over $65 billion in assets. Learn more at betterment.com.