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What account types are eligible for transfers within Betterment?

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What account types are eligible for transfers within Betterment?

You can transfer funds between certain types of Betterment accounts. The transfer eligibility depends on the account types involved.

Eligible Transfers

1. Transfers Between Individual Accounts

  • Allowed:
    • Between two individual taxable accounts.
    • Between an individual taxable account and individual Cash Reserve.
    • Between an individual taxable account and Betterment Checking (if Checking is linked as a funding source).

2. Transfers Between Joint Accounts

  • Allowed:
    • Between two joint taxable accounts.
    • Between a joint investing account and joint Cash Reserve.
    • Between a joint taxable account and Betterment Checking (if Checking is linked as a funding source).

3. Transfers Between Individual and Joint Accounts

  • Rules:
    • Allowed if you are listed as married to the joint account owner.
    • Allowed if you created the joint account and are the primary account owner (regardless of marital status).
    • Not Allowed: If you are the secondary account owner (i.e., invited by your partner to join the account). For next steps, see Step 2 in the section below, titled "What to Do If You Cannot Complete a Transfer Between Betterment Accounts."

4. Transfers Involving Trust Accounts

  • Allowed:
    • Between accounts within the same Trust.
  • Restrictions:
    • Transfers from Trust accounts to individual or joint accounts cannot be completed directly in your Betterment account. For next steps, see Step 2 in the section below, titled "What to Do If You Cannot Complete a Transfer Between Betterment Accounts."

Ineligible Transfers

  • Between unmarried individual and joint accounts.
  • Between Trust accounts and individual or joint accounts.
  • From retirement accounts (e.g., IRAs) to other account types (prohibited by tax laws).

For next steps, see Step 2 in the section below, titled "What to Do If You Cannot Complete a Transfer Between Betterment Accounts."


What to Do If You Cannot Complete a Transfer Between Betterment Accounts

If you're unable to complete a transfer due to marital status, account ownership, or other restrictions, follow these steps:

  1. Check Account Eligibility
    If you cannot select your preferred source or destination account, there may be specific reasons:
    • Source Account Unavailable: This is likely due to insufficient balance. If there is a pending deposit, you will need to wait until it settles before attempting the internal transfer again.
    • Destination Account Unavailable: Certain account types may not be eligible for transfers. Click "[X] available accounts" to learn more about why the destination account cannot be selected.
  2. Request Assistance
    If your accounts are eligible but you still cannot complete the internal transfer:
    • Log in and type "Help with internal transfer" into our chatbot. The chatbot will guide you through the process, collect the necessary details, and forward your request to our team.
    • Alternatively, you can Contact Support directly for help with completing transfers.

      Additional Considerations

      1. Internal Transfer Frequency Limit:
        • Investing Accounts: Transfers between investing accounts are limited to once per day.
        • Cash Reserve Accounts: Up to 5 internal transfers per day.
      2. Processing Times:
      3. Tax Implications:
        • Transfers involving investing accounts may result in the sale and reinvestment of assets, potentially triggering tax consequences.