A few years ago, I started a new job, and I knew I’d have to rollover my old 401(k) from my previous company. Unfortunately, I had heard a lot of stories about how painful the rollover process was, so I put it off for a while.
When I finally mustered up enough courage, I decided to start the rollover process. This involved a number of phone calls between my old and new 401(k) companies – most of which were used to understand how the rollover process worked in the first place – and a lot of paperwork.
Not only did this process take a long time, but it was stressful. I made countless phone calls and had to ask a lot of questions. Throughout the process, I wasn’t even sure if what I was doing was correct.
I hoped for the best, and luckily it worked out, but I remember thinking that I never wanted to go through this process again.
Flash forward to just a few months ago when I started a new job once more, and I was yet again in a situation where I needed to rollover my old 401(k).
I expected to have to go through the same process as last time, but that’s when I heard about Capitalize – a company that can rollover your old 401(k), 403(b) or 457 for you, for free!
Ready to rollover your old 401(k) with Capitalize? Click here!
My Capitalize Experience
This time around, I used Capitalize to rollover my old 401(k) into an IRA that I already had, simply because I no longer wanted this portion of my retirement savings to be tied to an employer, past or present.
To begin rolling over my old 401(k) with Capitalize, I visited their website and followed the prompts to show them where my old 401(k) was and where I wanted it to go (my IRA).
The process took 15 minutes on their user-friendly website, and afterward, I was sent a confirmation email stating that a Capitalize representative was hard at work rolling over my 401(k) for me.
Two days later, I received another email from Capitalize prompting me to pick a time on their calendar. Whenever it was convenient for me, a Capitalize representative was going to call my new 401(k) company and dial me in so they could get my permission for the rollover.
Capitalize can usually complete the rollover digitally without a phone call, but the particular company I’m rolling my 401(k) into requires a phone call to get my permission.
At the time of writing this article, I have not yet had my final phone call. My call is scheduled for the end of February. Again, in most situations, a phone call won’t even be required and the rollover process can be completed digitally!
But because my situation is unique, and because Capitalize is such a popular tool that’s assisting so many people with their rollovers right now, my process won’t be completed for a few more weeks.
Since Capitalize is experiencing a huge surge of interest in their service (no surprise here – it’s great!) I asked what they’re doing to try and solve the longer timelines users are now experiencing. Here’s what they said:
- More digital / automated rollovers so you won’t need to hop on the call at all
- Hiring more incredible customer service folks!
- Finding efficiencies wherever we can!
I love that Capitalize is already aware of their users’ timelines. All in all, I’ve spent a total of 15 minutes rolling over my old 401(k) so far (as compared to hours and hours on the phone and filling out paperwork the last time around), so I’m just grateful that Capitalize is doing this entire process for me.
I’ll report back when my process is complete, but so far I am pleased!
Ready to rollover your old 401(k) with Capitalize? Click here!
Do you want to rollover your old 401(k)?
If you have an old 401(k), you have a few options:
- You can leave it where it is
- You can roll it over into your new company’s 401(k)
- You can roll it over into an IRA
Many people choose to rollover their old 401(k)s into an IRA. According to the Capitalize website, “an IRA is simpler to manage: you can open one on your own, and it isn’t tied to an employer. It also means that you get to pick an IRA provider that has low fees and suits your needs.”
What’s great about Capitalize is that they guide you every step of the way. So if you’re not sure where your old 401(k) is, Capitalize can help you find it. Capitalize can also help you open an IRA if you don’t have one of those, either!
If Capitalize sounds like it could help you, keep reading to see just how it works.
How to Rollover Your Old 401(k) with Capitalize: Step by Step
1. To start, visit HiCapitalize.com.
At the top right of their homepage is a green button that says “Get Started”. Click this button to begin.
2. From there, you’ll be taken to the following screen where you will be asked if you know where your old 401(k) is:
Click the button that says “Yes, I know where it is” if you know where your old 401(k) is located.
Click the button that says “No, I need help finding it” if you do not know where your old 401(k) is located.
If you clicked “Yes, I know where it is.”:
If you clicked “Yes, I know where it is”, you will be taken to the following screen:
Simply type your old 401(k) provider in the search bar, and then click the green button at the bottom that says “Find my old 401k” and proceed to Step 3.
If you clicked “No, I need help finding it.”:
If you clicked “No, I need help finding it”, you will be taken to the following screen:
Simply type the name of the company you worked for where you had your old 401(k), and then click the “Next” button.
When you click the “Next” button, Capitalize will try to find where your old 401(k) was located. If Capitalize can find it, you will see a screen similar to this:
Click the green “Next” button to proceed.
3. You will then be taken to the following screen where you will be asked if you already have an IRA:
Click the button that says “Yes, I already have an IRA” if you already have an IRA.
Click the button that says “No, I need to open one” if you don’t already have an IRA.
If you want to rollover your old 401(k) to your new/current employer’s 401(k), you can click the button at the very bottom that says “Want to rollover to a new employer provided 401(k)?”.
If you do this, Capitalize will simply suggest that you speak to an HR representative at your current company for assistance, as they only provide services for those rolling their old 401(k) into an IRA.
If you clicked “Yes, I already have an IRA”:
If you already have an IRA, Capitalize will ask you where it is:
Type in your IRA provider in the search bar, or click on your IRA provider if you see it in the selection of popular IRA providers below the search bar.
Once you enter your IRA provider, proceed to Step #4.
If you clicked “No, I need to open one”:
Capitalize will ask you if you already have a provider in mind that you’d like to open your new IRA with:
You can select from one of the options that you see, or click the green button that says “Help me pick one” if you’re not sure which IRA provider to go with. If you click “Help me pick one”, Capitalize will ask you a series of questions to help determine the right IRA provider for you.
Let’s say, for example, that you want to open an IRA with Betterment. Simply click the “Betterment” button to move forward.
Once clicked, Capitalize will ask you a few questions to ensure that this new IRA is exactly how you like it. Once you finish answering those few questions, Capitalize will present you with the rundown of your proposed IRA provider:
If your new IRA provider looks good to you, simply click the green “Continue” button to move forward.
4. Once you locate or determine your new IRA provider, you will create an account with Capitalize and verify your email address.
Enter your email and password to create your Capitalize account. Once you do this, Capitalize will send you a verification email and you will be prompted to verify your email address.
Check your email for your verification code, and enter it in the text box. Then, click the “Submit” button.
5. After typing in your verification code, you will be prompted to enter your IRA Account Number.
If you already have an IRA:
You can find your IRA Account Number by logging into the account where your IRA is, and searching for your IRA account specifically.
Once you find your IRA Account Number, enter it into the text box:
Once you enter your IRA Account Number, click the “Next” button. Proceed to Step #6.
If you don’t yet have an IRA:
If you don’t have an IRA, you will be prompted to open one manually through the provider that you chose earlier. Capitalize will help you do this by providing a link directly to the IRA company that you chose earlier. Capitalize will also provide you instructions on how to open an IRA account.
Once you open an IRA with your new provider, you will head back to the Capitalize website where you will enter your new IRA’s Account Number.
6. Capitalize will now ask you a series of questions to complete the rollover process.
You’ll be asked for things like your social security number, date of birth and mailing address.
Once you finish entering your information, you’ll be asked to confirm the information you entered. If it looks good, click “Next” one last time to complete the process. Then, Capitalize will display a “Thanks for getting started!” screen and let you know that they are working on your rollover!
7. The Capitalize team will send you a confirmation email.
Shortly after you complete the process on the Capitalize website, Capitalize will send you a confirmation email letting you know that they are working on your rollover, and that once everything is confirmed, they’ll be in touch with next steps.
8. If a phone call is needed to confirm your rollover, Capitalize will ask you to pick a time for the phone call that works for you.
In some cases, your new plan may want your approval before rolling over your old 401(k). If that’s the case, you’ll get an email from Capitalize asking you to pick a day and time that works best for you for that phone call.
Luckily, Capitalize handles all of this – they will set up and make the phone call and they will loop you into the phone call at your chosen time. You just have to answer!
9. The Final Step!
At this point, Capitalize will let you know how you can receive your rollover funds. This all depends on what your 401(k) provider allows – some will wire the money directly into your IRA.
Other 401(k) providers will mail you a check to your home, and you’ll need to mail it to your new IRA. To make things even easier, Capitalize will mail you a pre-paid, pre-addressed envelope (with tracking!) for you to slip your check into the mail and send it off to your new IRA provider.
Want to try Capitalize for yourself? Click here to get started!
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