Keeping the Cash Reward after withdrawing funds from your IRA accounts depends on how much you’re withdrawing and how much you’ve rolled over into your IRA account since receiving the reward.
As long as you’ve held the deposits for at least three years, the full reward is yours to keep.
For example, if you originally rolled over $60,000 during the offer period and received a Cash Reward of $150 on April 30, 2025, you can withdraw all of it (including the $150 reward) on or after April 30, 2028 with no penalty.
Alternatively, if you withdraw money from your investing accounts earlier than three years after the reward deposit date, you’ll keep the reward as long as the amount of your withdrawal is less than or equal to the net amount that you’ve rolled over into your investing account after the end of your offer period, plus any market gains you’ve earned in that account. If your withdrawal is greater than the total of those rollover amounts plus any market gains earned, we will apply an Early Reward Removal Fee. This fee will adjust your reward based on the remaining net rollover amount in your investing accounts.
For example, if you originally rolled over $100,000 and received a $300 reward on April 30, 2025, then withdrew $50,000 on April 1, 2026 and made no additional deposits to the account through April 1, 2026, your account will be subject to an early removal fee of $150.
|
Net Deposits |
Reward |
Withdrawal date |
Account value on the withdrawal date |
Withdraw amount |
Early reward removal fee |
|
$100,000 |
$300 |
3 or more years after the reward lands |
$100,300 |
-$50,000 |
$0 |
|
$100,000 |
$300 |
Less than 3 years after the reward |
$100,300 |
-$5,000 |
$0 |
|
$100,000 |
$300 |
Less than 3 years after the reward |
$100,300 |
-$35,000 |
$150 |
|
$40,000 |
$150 |
Less than 3 years after the reward |
$80,150 due to additional contributions |
-$20,000 |
$0 |
In no event will the aggregate amount of the early reward removal fee exceed the amount of the reward you received from Betterment.
The early removal fee will apply to any of the following transactions:
- RMDs
- Withdrawals (+ Recurring withdrawals)
- Internal Transfers to Cash Reserve, Taxable Accounts, or Checking Accounts
- Transfers out (ACATS/Rollovers out)
- ACH Reversals
The early reward removal fee will not apply to any transactions that transfer eligible deposits within your IRA account(s) for three years after receiving the match (i.e., a conversion from your Traditional IRA to your Roth IRA). You may be subject to an early reward removal fee based on a withdrawal out of any eligible accounts (any IRAs). For example,
- Say - you roll over $40,000 to a Roth IRA during the offer period and earn a $150 reward in that account. After the offer period ends, you recharacterize $10,000 from the Roth IRA account by moving those funds to a newly opened Traditional IRA. If you do a full withdrawal from that Traditional IRA, that withdrawal may be subject to a $150 fee (i.e., the difference between the $150 reward you originally received and the $0 reward applicable to the remaining total of $30,000 in your eligible accounts).
Your deposits at the end of the offer period - across all eligible investing accounts (existing or opened during the holding period) - must be maintained throughout the 3 year holding period in order to avoid a potential fee. Any subsequent market gains or deposits into any eligible account will increase the amount that you can withdraw without penalty.
Are there fees if I transfer funds from my investing account out of Betterment?
Yes, this transfer would be subject to an early reward removal fee if the amount you’re transferring meets the criteria above.
ACATS transfers are also subject to a separate fee.
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