Yes, you can transfer an account via the ACATs system that has been part of a Tax-Coordinated Portfolio (TCP).
What Happens When You ACATs Out a Tax-Coordinated IRA:
Following the outbound ACATs, there will be a liquidation of fractional shares that will be sent as a cash residual. Following the liquidation in the IRA, there may be some rebalancing that takes place in the Taxable account, but Betterment should prioritize losses and minimize the taxable impact.
Please note: The principal ACATS will not have a tax impact, but if there's a large residual in an IRA, it may cause some activity in the taxable portion of the TCP.
Important Considerations:
Betterment is not responsible for any tax consequences, missed market opportunities, or other costs that may occur when transferring an account from a Tax-Coordinated goal. If you have questions about the process, feel free to contact us for further assistance.
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