How can I transfer out funds if my new provider is unable to complete my ACATS request?

If your new provider cannot complete your ACATS (Automated Customer Account Transfer Service) request, or ACATS is unavailable, follow the instructions below depending on the type of account you're transferring.

Betterment Securities charges a flat fee of $75 for each investing account transferred to another company.

Transferring a Taxable (Non-IRA) Account to Another Provider:
If your taxable (non-IRA) account is not eligible for an ACATS transfer, we use the DTC method, which supports full, in-kind transfers only (no partial transfers or fractional shares).

DTC Full Transfers Only: Requests for partial transfers or specific shares will be rejected. If you need to liquidate shares, go to Transfer or Rollover > Withdraw and withdraw them to your linked bank account.

Requesting the Transfer:

1. Contact the Receiving Institution: Request that they initiate a full transfer of all shares. The institution will need your Betterment account number, which can be found in Settings > Accounts.

2. Provide Required Documents:

  • Transfer paperwork from the receiving institution.
  • A copy of the first page of your most recent Betterment statement (found on your Documents page).
  • For transfers over $250,000, the paperwork must be Medallion Signature Guaranteed.
  • Mail all documents to the address below (see How to Submit Transfer Requests).

 


Transferring an IRA Account to Another Provider:

If ACATS is not available, follow these steps for IRA transfers.

Note: Transferring assets out of a Tax-Coordinated Portfolio may result in rebalancing, potentially triggering taxable gains in any taxable accounts that remain at Betterment. Learn more about tax impacts here.

What We Need:

● Transfer paperwork from the receiving institution.
● A copy of the first page of your most recent Betterment statement (found on your Documents page).
● For transfers over $250,000, Medallion Signature Guarantee is required.

What to Expect:

● Betterment will liquidate holdings and issue a check to your new provider.
● Transfers are typically completed within 3-4 weeks after receiving acceptable paperwork.


Transferring an IRA to a 401(k) or Qualified Employer Plan:

To transfer your Betterment Traditional IRA to a 401(k) or another qualified plan, follow these steps.

  • Note: We cannot transfer a Roth IRA to a 401(k) due to IRS guidelines.

What We Need:

  • A Letter of Acceptance (LOA) from your new provider.
  • A copy of the first page of your Betterment statement (found on your Documents page).
  • A Letter of Intent (LOI) from you, authorizing the transfer.
  • For transfers over $250,000, Medallion Signature Guarantee is required.



How to Submit 401(k) Transfer Requests:

● Standard Mail:
Betterment Transfers
PO Box 207691
Dallas TX 75320-7691

● Overnight/Tracked Mail:
Wells Fargo Lockbox
Betterment, Lockbox #207691
2975 Regent Blvd Ste 100
Irving, TX 75063

 


What is a Medallion Signature Guarantee?

A Medallion Signature Guarantee provides added security for your transfer. You can obtain one at your local bank or financial institution by bringing a statement from your current IRA provider. Learn more here.