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How do I withdraw funds from my Betterment account?

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How do I withdraw funds from my Betterment account?

You can withdraw your funds from Betterment at any time, with no additional trading fees or penalties. Follow the steps below to request a withdrawal.

How to Withdraw Funds

Using a web browser:

  1. Log in to your Betterment account
  2. Navigate to "Transfer or Rollover" in the upper-right corner of your home screen
  3. Select "Withdraw" and complete the prompts to specify the account and amount
  4. Funds will be sent to your linked bank account.

Using the mobile app:

  1. On the Home page, tap the “Move money”
  2. Tap "Withdraw” and complete the prompts
  3. Funds will be sent to your linked bank account.

Withdrawal Timelines

To confirm withdrawal processing times specific to your account type, check the Transaction Timeline Table.

Key Information About Withdrawals

  • Tax Consequences: Selling shares to withdraw funds may result in taxable gains or losses. Betterment’s TaxMin algorithm helps minimize tax impact by prioritizing the sale of shares with losses first (short-term losses, then long-term losses).
    • Use the Tax Impact Preview feature to estimate tax implications before confirming a withdrawal.
  • Retirement Accounts: Withdrawals from rollover IRA deposits must meet a 60-day waiting period.
  • Withdrawal Account Security:
    • Linked bank accounts must be held in your name.
    • We may request additional ownership verification of linked bank accounts via email.
      • All emails from Betterment will come from an "@betterment.com" address. Requests for documentation will include a secure upload link.
      • Never send personally identifiable information or documents as regular email attachments. Use only the secure methods provided by Betterment.
  • Volatility and Cancellation:
    • Withdrawal amounts may fluctuate due to market volatility until trades are executed.
    • Withdrawals cannot be canceled once securities are sold or cash is withdrawn from program banks.
  • Withdrawal Limitations:
    • Betterment does not support outbound wire transfers or issue checks payable to individuals.

Automatic Withdrawals

Automatic withdrawals are only available for goals with retirement income advice (e.g., a Retirement Income Goal). You can customize these withdrawals, including the frequency and date, directly within your account. Learn more here.

Withdrawal Fees

  • No Trading Fees: Betterment does not charge transaction fees for withdrawals or account closures.
  • Rollovers: A flat $75 fee applies for each investing account transfer to another company. This fee cannot be waived.
  • Low Balances: Accounts with remaining balances after an outbound transfer may incur a $4 monthly fee. Learn more here.

For 401(k) Withdrawals

The process for withdrawing from a Betterment for Business 401(k) account is different. Learn more about 401(k) withdrawals.

Looking to Withdraw to Another Investing Account?

Withdrawals can only be made to linked savings or checking accounts. Investing, money market, or high-yield cash accounts cannot be linked as funding sources. If you’re trying to transfer funds between investing accounts or firms, this requires a rollover. Check out our FAQ for more information on how to complete a rollover out of Betterment to another investment account.

Additional Withdrawal Options for Betterment Checking Accounts

Betterment Checking offers more withdrawal options. For details, visit the Checking Withdrawal Options FAQ.