In-kind transfers from Betterment to another provider can only be executed via the ACATS system. However, ACATS transfers may not be supported in all cases. If you are attempting to transfer funds to a new provider, but they are unable to fulfill your ACATS request or ACATS is otherwise unavailable, please see the instructions below depending on the account type you are transferring out.
Please note that Betterment does not charge any transaction or liquidation fees.
Transferring a taxable account
If your receiving firm does not support an ACATS transfer, the only alternative way to transfer out your taxable account is by withdrawing your assets to your connected bank account and then depositing them with your new firm. You can initiate a withdrawal in your account at Transfer or rollover > Withdraw.
When processing taxable account withdrawals, our algorithms select which specific lots to sell using our TaxMin algorithm. Betterment’s Tax Impact Preview feature further provides a real-time tax estimate for any stocks and bonds investment account withdrawal—before you confirm the transaction.
Transferring an IRA account to an IRA account at another provider
If your receiving firm does not support an ACATS transfer, you will need to send paperwork for us to process your IRA transfer request.
Please note that if you are transferring assets out of a Tax-Coordinated Portfolio, this may lead to rebalancing in any taxable accounts that are part of the Tax-Coordinated Portfolio and remain at Betterment. Rebalancing may result in the realization of taxable gains. For information regarding the potential tax impacts of transferring out of a Tax-Coordinated Portfolio, please see this resource.
Lastly, if you request that an outbound transfer request be placed on hold, we will maintain the request for 30 days, at which point it will be canceled if you do not take further steps to complete the transfer.
What we need:
- Transfer paperwork (from the receiving institution)
- All transfers of accounts over $250,000 require a medallion signature guarantee
- A copy of the first page (only) of your most recent Betterment statement, which you can find on your Documents page
What you can expect:
- Betterment will liquidate holdings then issue a check to the new provider for the full amount or specified partial dollar amount requested
- Generally, transfers are completed within 3-4 weeks of receiving acceptable transfer paperwork
How to Submit Transfer Requests:
Betterment cannot accept electronic transfer requests, faxed, or digital copies of transfer paperwork. Please mail the transfer paperwork to the appropriate address below.
First-Class and standard mail can be sent to:
Betterment Transfers
P.O. Box 207691
Dallas TX 75320-7691
Do not send overnighted mail or signature-required mail to the P.O. box address.
Overnighted, tracked or signature-required mail must be sent to:
Wells Fargo Lockbox
Betterment
Lockbox # 207691
2975 Regent Blvd Ste 100
Irving, TX 75063
Transferring an IRA account to a 401(k) or another qualified employer plan at another provider
You will need to send paperwork for us to process your transfer request from an IRA to a 401(k).
Please note that if you are transferring assets out of a Tax-Coordinated Portfolio, this may lead to rebalancing in any taxable accounts that are part of the Tax-Coordinated Portfolio and remain at Betterment. Rebalancing may result in the realization of taxable gains. For information regarding the potential tax impacts of transferring out of a Tax-Coordinated Portfolio, please see this resource.
Lastly, if you request that an outbound transfer request be placed on hold, we will maintain the request for 30 days, at which point it will be canceled if you do not take further steps to complete the transfer.
To transfer your Betterment IRA (Traditional only*) into your 401(k) at another provider, we’ll need the following:
- A Letter of Acceptance (LOA) from your new provider. An LOA is a standard document that instructs the sending provider on how the check should be made out and where it should be sent, and confirms that the receiving institution will accept the funds into a qualified account. This document should be obtained from the provider of your new plan.
- A copy of the first page of your most recent Betterment statement, found on your Documents page.
- A Letter of Intent (LOI). This is a signed letter from you, the account owner, including the words, "I, [first and last name], authorize the [full/specify $ amount if partial] transfer of assets from my Betterment Traditional IRA account into my [name of new provider]'s 401(k)."
*Note that we are not able to transfer a Roth IRA out to a 401(k) account, according to IRS guidelines.
If your balance is $250,000 or more, your transfer paperwork will need to be Medallion Signature Guaranteed.
What you can expect:
Generally, transfers are completed within 3-4 weeks of receiving acceptable transfer paperwork.
The transfer paperwork should be mailed to:
Standard Mail:
Betterment Transfers
PO Box 207691
Dallas TX 75320-7691
Overnighted, tracked or signature-required mail must be sent to:
Wells Fargo Lockbox
Betterment
Lockbox #207691
2975 Regent Blvd Ste 100
Irving, TX 75063
What is a medallion signature guarantee?
A medallion signature guarantee is an extra level of security to prevent the unauthorized transfer of your assets. You can obtain one at a local financial institution with which you have an account. You will need to bring a statement from your current IRA provider to obtain a medallion signature guarantee.
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