How are terminated participants' funds transferred?

For plans being converted to Betterment, terminated participants' balances will be included in the transfer process, just like active employees. If a former employee still has a balance in the plan, their funds will move to Betterment along with everyone else’s.

Once the transfer is complete, they will receive new account access details and can decide whether to keep their funds in the plan, roll them over to an IRA, or transfer them to another employer-sponsored plan.

If the plan includes automatic force-outs, these participants may be rolled into an IRA according to the plan’s rules. If you have questions about how your plan handles terminated participants' balances, refer to your plan document or reach out for assistance.