If you want to transfer your assets to another provider, Betterment supports the Automated Customer Account Transfer Service (ACATS) for stock, bond taxable accounts, and IRAs. Follow the steps below to transfer your funds.
Account Types Not Eligible for ACATS Transfers:
● 401(k) Accounts: For details on how to transfer your 401(k), visit the “Moving Money Out” section of our 401(k) Participant FAQs.
● Crypto Accounts: Crypto cannot be transferred via ACATS. To withdraw funds, see this resource for instructions.
● Cash Reserve or Cash Goals: Cash in these accounts cannot be transferred in-kind. To transfer cash, log in to your Betterment account, go to Transfer or Rollover > Withdraw, and move the funds to your linked bank account.
Transferring Your Taxable or IRA Account:
● Tax-Coordinated Portfolios: Transferring assets out of a Tax-Coordinated Portfolio may cause rebalancing of remaining taxable accounts at Betterment, potentially leading to taxable gains. Learn more about tax impacts here.
● Roth IRA Transfers: Note that Roth IRAs cannot be transferred into 401(k)s, even if it’s a Roth 401(k), due to IRS rules.
If you request to place an outbound transfer on hold, the request will remain valid for 30 days, after which it will be canceled if not completed.
Partial vs. Full Transfers:
● Full Transfer: Transfer your entire Betterment legal account or goal (e.g., Safety Net, Build Wealth).
● Partial Transfer: Transfer a portion of your account (specific securities or a quantity of securities).
How to Request a Transfer:
1. Contact the Receiving Firm: Request the receiving firm to initiate the ACATS transfer. They may need to review your Betterment statements to complete the transfer.
2. Download Your Statements: Log in to your Betterment account via web browser and go to Settings > Accounts to download your monthly statements.
3. Select Apex Clearing: Betterment works with Apex Clearing for outgoing transfers. If
Betterment isn’t listed as an ACATS option, select "Apex" as your delivering firm.
Transfer Timeline:
● Transfers typically take 5-7 business days once approved by Betterment.
● Your account will be locked during the transfer.
● No account closure fees are charged by Betterment. However, the receiving firm may have transactional fees.
Residual Shares:
ACATS Transfers Only Support Whole Shares: Any fractional shares remaining after a full transfer will be liquidated, along with any residual dividends, and sent as cash to the receiving firm.
Cost Basis Information
Cost basis for transferred shares will be sent to the receiving firm within 15 days of transfer completion. If your new firm hasn't received the cost basis within 20 days, contact Betterment support to request a resend.
When ACATS is Not Supported:
If ACATS is unavailable or your receiving firm cannot complete the transfer, please see our FAQ for alternative transfer options.
Common Reasons for Rejected ACATS Transfers:
Here are some reasons ACATS transfer requests may be rejected:
● Account Type Mismatch: For example, trying to transfer from a joint Betterment account to an individual account at the receiving firm.
● Invalid Account Number: Double-check the account number on your monthly statement. You can download your statement by logging in and going to Settings > Accounts.
● Cash Reserve or Cash Goal Funds: These funds cannot be transferred in-kind. To transfer cash, go to Transfer or Rollover > Withdraw and move the funds to your linked bank account.
Important: Betterment is not a licensed tax advisor. The information provided here is for educational purposes and should not be considered tax advice.
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