Categories
Review 2026
BestGuide Score
4.3
out of 5
Empower earns a BestGuide Expert Score of 4.3/5.0 for its powerful retirement planning tools and extensive reach as the second-largest U.S. retirement plan recordkeeper. It scores highest on Services (90%) due to its free financial dashboard and dedicated Roth conversion calculators, making it a strong choice for those with existing Empower 401(k)s.
Empower earns an Expert Score of 4.3 out of 5.0 from BestGuide, positioning it as a major force in the retirement planning space, particularly for facilitating a Roth conversion. As the nation’s second-largest retirement plan provider, serving more than 19.5 million individuals, Empower’s primary strength lies in its integrated tools for those who already have a 401(k) plan with the company. This Empower review will analyze its specific features, such as its Roth conversion calculator and analyzer, against user-reported issues of administrative friction and alleged conflicts of interest.
Many retail investors know Empower through its acquisition of Personal Capital, whose free financial dashboard remains a core part of its offering. This suite of tools allows users to track their net worth, analyze fees, and plan for retirement. While multiple Empower reviews praise these free features, our analysis found documented user complaints regarding slow rollovers and cross-selling of proprietary financial products. This creates a balanced picture of a technologically capable platform that requires careful navigation by consumers.
Compare Empower with other top-rated roth conversions companies to see how it stacks up.
Executing a Roth conversion with Empower depends on the type of account you hold. The process is most direct for individuals with a 401(k) plan administered by Empower, but it also provides tools and accounts for those executing an IRA to Roth conversion or a backdoor Roth conversion.
If your employer’s 401(k) is with Empower and the plan allows for it, you can perform an in-plan conversion. This process converts pre-tax 401(k) contributions into a Roth 401(k) account within the same plan. According to Empower, funds are typically out of the market for only one business day during this transaction. This method is subject to income tax on the converted amount for the year the conversion occurs.
For individuals without an Empower 401(k), the process involves opening an Empower IRA. You would first roll over funds from an old 401(k) or transfer a Traditional IRA to an Empower Traditional IRA. From there, you can convert all or part of the Traditional IRA balance to an Empower Roth IRA. Users should be aware that research uncovered reports of rollovers taking several weeks, with some customers citing funds being out of the market for up to a month.
Empower provides a ‘Roth Conversion Analyzer’ to help estimate the tax implications of a conversion. This tool, a legacy of its Personal Capital platform, models the long-term financial impact. Understanding the Roth conversion rules and potential tax liability is critical, as the converted amount is treated as ordinary income. The platform’s ‘Roth 401(k) vs 401(k) Calculator’ also helps users compare the potential outcomes of contributing to each account type.
Based on our analysis of its services, Empower is best for individuals whose employer-sponsored 401(k) plan is already administered by the company. These users benefit most from the streamlined process for in-plan Roth conversions and integrated planning tools. It is also a strong choice for DIY investors who want access to a free, high-quality financial dashboard to track net worth and model retirement scenarios, including the use of its Roth conversion tax calculator. However, Empower is not ideal for investors seeking impartial, fee-only financial advice, due to allegations of cross-selling and making improper rollover recommendations into their own higher-fee products.
Empower distinguishes itself in a crowded market through its powerful, free financial dashboard and its immense scale. These features provide significant value for users planning complex financial maneuvers like a Roth conversion.
Free Financial Dashboard and Calculators: Formerly the core product of Personal Capital, Empower’s free dashboard allows users to link all their financial accounts, from banking to investments, to get a 360-degree view of their net worth. The platform includes a retirement planner, an investment checkup tool, and a fee analyzer. Specific to this vertical, its Roth conversion calculator and analyzer are key features that help users model the tax impact and long-term benefits of a conversion, a service for which competitors often charge.
Scale and Market Position: As the second-largest retirement plan recordkeeper in the U.S., Empower administers $2 trillion in assets. This scale provides a level of stability and institutional integration that smaller fintech companies cannot match. For the more than 19.5 million individuals in its plans, this means features like in-plan Roth conversions can be handled directly within their existing retirement ecosystem.
| Pros | Cons |
|---|---|
| Comprehensive Free Tools: Offers a no-cost financial dashboard with a net worth tracker and Roth conversion analyzer used by millions. | Administrative Delays: Some users report rollovers from external accounts can take weeks, with funds out of the market for up to 30 days. |
| No Income Limits on Conversions: Facilitates Roth IRA conversions for high-income earners, with no IRS-mandated limit on the amount that can be converted. | Alleged Conflicts of Interest: The company has faced allegations of improperly recommending rollovers into its own high-fee products and misusing participant data. |
| Massive Institutional Scale: As the second-largest U.S. retirement provider with $2 trillion in assets, it offers stability and integrated plan services. | Tax Reporting Complexity: Users have reported headaches with tax forms when non-deductible contributions are involved, increasing the risk of pro-rata rule issues. |
Yes, Empower is a legitimate and significant financial services company. It is the second-largest retirement plan recordkeeper in the United States, administering $2 trillion in assets for more than 19.5 million individuals. The company’s retail investment and wealth management arm, which absorbed Personal Capital following a 2020 acquisition, is an SEC-registered investment adviser.
Despite its legitimacy and scale, prospective clients should be aware of past controversies. Empower has faced allegations related to its advisory services, including accusations of making improper rollover recommendations that move participants into higher-fee investment products. Research reports have also highlighted claims of concealing employees’ conflicts of interest. These issues primarily concern its paid advisory services, not the free dashboard tools, but they warrant careful consideration for anyone considering a deeper relationship with the firm.
Empower earns an overall BestGuide Expert Score of 4.3 out of 5.0. Our expert panel’s rating is a weighted average of five core criteria, reflecting the company’s strengths in service offerings and scalability, balanced against concerns in transparency and customer satisfaction.
The score is based on the following category ratings:
Empower’s highest score is in Scalability (95%), a direct result of its position as a market leader managing assets for more than 19.5 million people. Its lowest scores are in Transparency (80%) and Customer Satisfaction (80%), reflecting the documented allegations of conflicts of interest and user-reported administrative hurdles. This overall score places Empower above the industry average of 4.1 for Roth conversion providers, primarily due to the strength of its technology and free tools.
Using Empower’s financial dashboard, retirement planner, and various calculators (including the Roth conversion analyzer) is free of charge. There is no cost to link accounts and track your net worth. This is a primary draw for millions of users.
For a direct in-plan Roth conversion within an existing Empower 401(k), Empower itself typically does not charge a transaction fee, though you should always confirm your specific plan’s rules. The primary cost is the income tax you will owe on the converted amount. For advisory services, Empower charges a management fee based on assets under management (AUM). Fees start at 0.89% for the first $1 million and decrease for larger portfolios. This pricing is in the mid-to-upper range compared to other digital wealth management services.
Empower earns an Expert Score of 4.3/5.0, making it a strong contender for those looking to understand and execute a Roth conversion, especially if their 401(k) is already on its platform. Its greatest asset is the free, powerful suite of financial tools inherited from Personal Capital, which includes an effective Roth conversion tax calculator that provides genuine value. Its status as the second-largest U.S. retirement plan administrator with $2 trillion in assets provides significant stability.
However, this Empower review must also highlight its weaknesses. The platform’s score is constrained by an 80% rating in Transparency due to allegations of steering clients toward high-fee products. Furthermore, numerous Empower reviews and user reports cite significant administrative friction, including rollovers that can leave funds out of the market for weeks, far longer than the one-day benchmark for in-plan conversions. For DIY investors using the free tools, Empower is excellent. For those considering its paid advisory services, we recommend caution and a thorough comparison of alternatives.
See our full Buyers Guide for the best roth conversions companies before making your decision.
What do experts say about Empower?
According to BestGuide’s expert panel, Empower is a powerful platform for retirement planning with excellent free tools, earning it an Expert Score of 4.3 out of 5.0. Experts praise its scale as the #2 U.S. retirement provider but caution users about alleged conflicts of interest in its advisory division.
Is Empower worth it in 2026?
Yes, Empower is worth it for its free financial dashboard, which provides a comprehensive view of your net worth and robust retirement calculators at no cost. For individuals with a 401(k) at Empower, it is an effective tool for in-plan Roth conversions. However, its paid advisory services, with fees starting at 0.89% AUM, may be less competitive than other options.
How does Empower compare to other Roth conversions companies?
Empower’s main advantage is its integrated financial planning dashboard, which surpasses many direct competitors like Fidelity or Vanguard in its holistic, real-time view of a user’s entire financial picture. However, brokerages like Fidelity may offer a wider selection of low-cost investment products and a more straightforward process for a backdoor Roth conversion without the advisory cross-sell pressure reported by some Empower users.
How do I do a backdoor Roth conversion with Empower?
To perform a backdoor Roth conversion, you would typically open both a Traditional IRA and a Roth IRA with Empower. You then make a non-deductible contribution to the Traditional IRA and subsequently convert those funds to the Roth IRA. It is critical to ensure you have no other pre-tax IRA assets to avoid tax complications from the IRS pro-rata rule.
What are the tax implications of a Roth conversion?
When you convert pre-tax retirement funds (from a Traditional 401(k) or IRA) to a Roth account, the amount converted is generally considered taxable income for that year. You will owe ordinary income tax on the converted sum. Empower’s Roth Conversion Analyzer can help you estimate this tax liability before you proceed.
What is an in-plan Roth conversion?
An in-plan Roth conversion allows you to move money from a pre-tax 401(k) account to a designated Roth account within the same employer-sponsored retirement plan. Empower facilitates this for the more than 19.5 million individuals in plans it administers, provided the specific plan allows for such conversions.
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