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401(k) Rollover and Withdrawal Options

Published

How can employees roll over funds into a Betterment 401(k)?

To roll over retirement funds from another provider into a Betterment 401(k):

  • Log in to Betterment from a web browser.
  • Select Transfer or rollover > Rollover to Betterment > 401(k) rollover.

Follow the prompts to enter fund details and generate a Rollover Form with check payable and mailing instructions.

Send the check to:

Regular Mail:
Betterment 401(k)
PO Box 208435
Dallas, TX 75320-8435

Overnight by Special Courier:
Lockbox Services 208435 (include in Reference Section)
Betterment 401(k)
2975 Regent Blvd, Suite 100
Irving, TX 75063

If rolling over both Traditional and Roth funds, complete this process separately for each portion.

How can employees roll over funds from an inactive Betterment 401(k) to an active Betterment 401(k)?

To roll over funds from an inactive Betterment 401(k) to an active Betterment 401(k):

  1. Log in to Betterment from a web browser.
  2. Select Transfer or Rollover > Rollover to Betterment > 401(k) rollover.
  3. Follow the prompts to generate a Rollover Form (required for internal processing).
  4. Once the form is generated, go back to the Transfer or Rollover menu and select Withdraw.
  5. Choose Rollover to an external retirement account, and enter your active Betterment 401(k) plan details along with the mailing address:
    • Betterment 401(k)
      PO Box 208435
      Dallas, TX 75320-8435

After both steps are completed, the internal Betterment rollover will process in 7–10 business days.

How can employees roll over or withdraw funds from a Betterment 401(k)?

Employees leaving their current Betterment 401(k) plan have these options:

  • Rollover to a Betterment IRA – Funds transfer automatically within 5–7 business days, pending plan sponsor approval.
  • Rollover to an external retirement account – A check is mailed within 12 business days, pending plan sponsor approval.
  • Leave funds in the current plan – Some plans require balances under $5,000 to be distributed. Check the Summary Plan Description for details.
  • Cash withdrawal – Subject to a 20% federal tax withholding and potential 10% early withdrawal penalty.

How can employees initiate a withdrawal?

  • Log in to Betterment from a web browser (not the mobile app).
  • Select Transfer or Rollover > Withdraw.
  • Choose your 401(k) account and follow the prompts to select a withdrawal option.

What special cases should employees be aware of?

  • Partial withdrawals – Contact support@betterment.com for assistance.
  • Outstanding 401(k) loans – Repayment is required before a withdrawal can be processed online. Contact support@betterment.com for options.

All withdrawals are subject to plan sponsor review and approval.