Is Capitalize Legit and Safe? A Complete Review

Capitalize is a free online service that helps people move old 401(k) retirement accounts into a new IRA without stress. If you’ve changed jobs and left money in an old plan, Capitalize makes the rollover process simple by handling the paperwork for you. They even help you find forgotten accounts and let you choose from trusted IRA providers like Fidelity, Vanguard, or Betterment. The best part? Capitalize is legit and safe, backed by real investors and secure systems. It’s designed to save you time, hassle, and confusion so you can focus on growing your retirement savings with confidence.

If you’ve ever changed jobs, you probably know the headache of dealing with old retirement accounts. Maybe you left a 401(k) sitting with your previous employer because the paperwork felt confusing. Or maybe you weren’t even sure what to do with it. That’s where Capitalize comes in—a service that promises to handle all the messy details for you.

But the question is: Is Capitalize legit and safe, or is it some kind of scam that plays with your retirement savings?

I rolled up my sleeves, dug into reviews, looked at how Capitalize works, and checked their security practices. In this article, I’ll walk you through everything: what Capitalize means, how it works, its features, and whether it’s a genuine, trustworthy platform for handling your retirement rollover.

What Capitalize Means

Let’s start with the basics. Capitalize is a fintech company that specializes in helping people roll over old 401(k) retirement accounts into an IRA (Individual Retirement Account).

If that sounds confusing, don’t worry—it’s simpler than it seems. A 401(k) is a retirement account provided by your employer. When you change jobs, you can’t keep adding money to that old account, and managing multiple accounts can get messy. Normally, you’d need to contact your old employer, fill out long forms, and coordinate with a new account provider. It’s a lot of stress.

Capitalize steps in as the middleman. They claim they’ll handle the entire process for free, making sure your old retirement money moves into a new account safely.

So when we ask, “Is Capitalize legit?” the first thing to know is that yes—Capitalize is a real company offering a genuine service, not a fake scam site.

How Capitalize Works

Okay, let’s break down the process in plain English. Here’s how Capitalize works, step by step:

1. Sign Up on Their Website
   You visit the Capitalize website and create a free account.
2. Find Your Old 401(k)
   Capitalize helps you locate old retirement accounts using your information (like past employers). This is a huge relief if you’ve lost track.
3. Choose a New IRA Provider
   You can pick from Capitalize’s recommended list of IRA providers, or you can roll over into an IRA you already have.
4. Capitalize Handles the Paperwork
   They contact your old provider, fill out forms, and coordinate with the new one so you don’t have to.
5. Transfer Complete
   Your old 401(k) money safely lands in your new IRA account, and you’re good to go.

It’s that simple. The best part? Capitalize doesn’t charge you for this service. Instead, they make money from IRA providers that pay them referral fees when you choose to open a new account through Capitalize.

Features of Capitalize

So what makes Capitalize stand out? Here are some of its main features:

1. Free Rollovers

Capitalize doesn’t charge you a dime to move your old 401(k). That’s a huge deal, considering how expensive financial services can be.

2. Account Locator

If you’ve had multiple jobs, finding old accounts can be tricky. Capitalize helps track them down.

3. Partnerships with IRA Providers

They work with well-known, legitimate IRA companies like Fidelity, Charles Schwab, Betterment, and Vanguard.

4. Paperwork Management

They handle the stressful, boring forms so you don’t have to.

5. Customer Support

You can actually talk to human beings if you get stuck.

6. Secure Platform

Capitalize uses strong security protocols to protect your sensitive financial data.

Is Capitalize Legit?

So, let’s answer the big one: Is Capitalize legit?

Yes, Capitalize is legit.

Here’s why:

• Real Company – Capitalize was founded in 2019 and is based in New York City.
• Strong Backing – They’ve raised millions in venture funding from respected investors.
• Partnerships – They work with trusted IRA providers like Vanguard, Schwab, and Fidelity.
• Transparency – They openly explain how they make money (referral fees).
• Positive Reviews – Customers praise the simplicity and free service.

So if you’re worried about whether Capitalize is legitimate, you can relax. It’s a genuine company helping people with a real financial need.

Is Capitalize Safe?

Now, safety. After all, this involves your retirement money and sensitive personal details.

So, is Capitalize safe?

The answer: Yes, Capitalize is safe.

Here’s why:

• Secure Encryption – They use industry-standard encryption to protect data.
• Trusted Partners – They don’t send your money to shady banks. They only work with reputable IRA providers.
• No Direct Access – Capitalize doesn’t hold your money. They just coordinate the transfer. Your funds always move directly between institutions.
• Compliance – They follow U.S. financial regulations.

So yes, Capitalize is safe to use.

Is Capitalize a Scam?

Let’s be clear: Capitalize is not a scam.

Scams usually involve stealing your money, disappearing, or making unrealistic promises. Capitalize does none of that. Instead:

• They provide a genuine service.
• They’re backed by real investors and financial institutions.
• They’re transparent about being free for customers and making money from partnerships.

So if you’ve been wondering, “Is Capitalize a scam?” the answer is no, it’s not.

Security and Transparency

When it comes to handling money, security and transparency are critical.

• Security: Capitalize is safe. They protect your information with encryption and don’t mishandle funds.
• Transparency: They’re clear about how they make money (through referral fees). Unlike shady services, there are no hidden charges.

This openness is one of the reasons people trust them.

Pros of Capitalize

Let’s look at the positives:

• Capitalize is legit and backed by trusted investors.
• Capitalize is safe—strong security measures.
• Free service for customers.
• Helps you find old 401(k) accounts.
• Handles stressful paperwork.
• Partners with trusted financial institutions.
• Good customer support.

Cons of Capitalize

Of course, no company is perfect. Here are some cons:

• Makes money from IRA providers, so they might recommend partners over others.
• Still a relatively new company compared to big banks.
• Limited to U.S.-based retirement accounts.
• Online-only service—no physical branches.

Who Should Use Capitalize?

Capitalize is perfect for:

• People who have switched jobs and left 401(k)s behind.
• Anyone confused by retirement rollover paperwork.
• People who want a free, easy solution.
• Those who want peace of mind without the hassle.

It’s not really for:

• People outside the U.S.
• Folks who prefer doing everything through in-person advisors.

My Personal Take

If you asked me, “Would you use Capitalize?” my answer would be: Yes, absolutely.

I like that Capitalize is legit, safe, and transparent. I love that it’s free for customers and that they only make money through partnerships. And the fact that they’ve partnered with trustworthy financial giants tells me it’s a genuine service.

If I had an old 401(k) floating around, I’d happily use Capitalize to roll it over—mainly because I hate paperwork, and they handle it all.

Final Verdict: Is Capitalize Legit and Safe?

After digging into Capitalize’s background, services, and reviews, here’s the final verdict:

• Capitalize is legit: Real company, strong investors, trusted partners.
• Capitalize is safe: Secure platform, no direct access to your funds, compliance with regulations.
• Not a scam: Transparent business model and genuine service.

So if you’re asking: “Is Capitalize legit and safe?” the answer is: Yes—it’s a safe, legitimate, and genuine way to manage your old 401(k).

Capitalize FAQ

Q1: Is Capitalize legit?
Yes. Capitalize is legit. It’s a real fintech company founded in 2019 and backed by trusted investors.

Q2: Is Capitalize safe?
Yes. Capitalize is safe. It uses secure systems, doesn’t hold your money, and only works with trusted IRA providers.

Q3: Is Capitalize a scam?
No. Capitalize is not a scam. It’s a genuine service that makes 401(k) rollovers easy and free for customers.

Q4: How does Capitalize make money?
They earn referral fees from IRA providers when you open an account through them.

Q5: Who should use Capitalize?
Anyone in the U.S. with an old 401(k) who wants a stress-free, safe rollover process.