IRA Match Terms and Conditions

Updated September 10, 2024

These terms (the “Terms”) provide you with important information about the Betterment IRA Deposit Match (the “Betterment Match”) offered by Betterment LLC (“Betterment”) on contributions to a Betterment Traditional or Roth individual retirement account (an “Eligible IRA”) as described below. By participating in the Betterment Match, you understand and agree to these Terms.

  1. Offer.

If you are an existing Betterment client, to qualify for the Betterment Match, you must enroll in the offer by clicking on the offer link in your email or within the Betterment app and complete one or more contributions into an Eligible IRA during the Offer Period (as defined below), inclusive of the required settlement time (typically 2-3 business days) (an “Eligible Contribution”). If you are a new Betterment client (i.e., you do not have an existing Betterment account), to qualify for the Betterment Match, you must enroll in the offer by clicking on the signup link on the Betterment website, open an Eligible IRA, and complete one or more Eligible Contributions into that account. Rollovers and transfers of cash or investments from other qualified accounts, such as an external IRA or employer plan, are not eligible for the Betterment Match. Contributions to SEP IRAs, Inherited IRAs, and IRAs with a third-party Advisor through the Betterment for Advisors platform are also not eligible for the Betterment Match. However, transfers from Betterment taxable investing accounts and Cash Reserve accounts into an Eligible IRA are Eligible Contributions. 

If you make Eligible Contributions, Betterment will provide a Betterment Match of 1% of the value of your net Eligible Contributions to your Eligible IRA, less any withdrawals you make from any Betterment IRA account (if you have multiple IRAs at Betterment) during the Offer Period, and subject to a two (2) year holding period as discussed below. The Betterment Match will be reflected in whole cent increments. The Offer Period applicable to your account will begin when you claim the offer online, which may be any time after 1:00 PM ET on September 10, 2024, and ends at 11:59:59 PM ET on December 30, 2024. The Betterment Match will be delivered to your Eligible IRA on or around December 31, 2024 (the “Match Date”).

In 2024, the maximum contribution to any IRA(s) is $7,000 for those under 50 years old, or $8,000 for those 50 and older. Eligible Contributions for the Betterment Match offer are subject to these IRS contribution limitations.

  1. Limitations.

There are certain limitations on the Betterment Match that you should be aware of:

  • If, for any reason, you receive a Betterment Match and you transfer or distribute some or all of your funds in your Eligible IRA to an account outside of that Betterment Eligible IRA, including any transfer to a Betterment account that is not an Eligible IRA, prior to the end of two (2) years after the Match Date (the “Holding Period”), a non-taxable fee will apply to the applicable IRA as payment for services from Betterment (the “Early IRA Match Removal Fee”). The Early IRA Match Removal Fee is separate from and above any ACATs fees and investment management fees. The Early IRA Match Removal Fee will be calculated based on the amount of the net Eligible Contributions that received a Betterment Match relative to the amount of the net withdrawal (taking into account amount of any subsequent deposits, including rollovers and transfers) during the Holding Period. The Early IRA Match Removal Fee will equal 1% times the value of the net withdrawal made from the Eligible IRA during the Holding Period (i.e., the withdrawal or transfer less any additional deposits or transfers made into the Eligible IRA, times 1%), up to the value you receive in the Betterment Match. By agreeing to participate in the Betterment Match, you, as a fiduciary to your individual retirement account, understand and agree that the Early IRA Match Removal Fee is a reasonable fee for Betterment’s services to your Eligible IRA.
    • This means if you don’t make any additional deposits or transfers into your Eligible IRA after the Match Date and you withdraw from or transfer funds out of your Eligible IRA during the Holding Period, an Early IRA Match Removal Fee will be applied to your account equal to 1% of the value of the withdrawal or transfer, up to the value of the Betterment Match.
    • However, if your withdrawal or transfer out is equal to or less than net deposits made during the Holding Period, no Early IRA Match Removal Fee will be applied to your account. Alternatively, if your withdrawal exceeds any net deposits during the Holding Period, an Early IRA Match Removal Fee will be applied to your account.
    • If you make multiple withdrawals or transfers out of your Betterment IRA during the Holding Period, each withdrawal may be subject to an Early IRA Match Removal Fee subject to the conditions described above.
    • In no event will the amount of the Early IRA Match Removal Fee exceed the amount of the Betterment Match.
  • The Early IRA Match Removal Fee will be assessed with respect to all of your Eligible IRAs if you have multiple Eligible IRAs at Betterment. Any distributions from your Eligible IRAs will potentially implicate the Early IRA Match Removal Fee, including distributions that may be required by law such as required minimum distributions.
  • In the event that your Eligible IRA is subject to an Early IRA Match Removal Fee, you understand and acknowledge that Betterment will instruct Betterment Securities to sell securities in an amount that will generate cash proceeds to satisfy the Early IRA Match Removal Fee.

  1. Miscellaneous.

The Betterment Match is not a recommendation of any investment or investment strategy and is not a recommendation that a customer rollover or transfer assets into a Betterment IRA. By participating in the Betterment Match, you represent that neither Betterment nor any Betterment affiliate has made a recommendation that you invest in or open a Betterment IRA.

By offering the Betterment Match, Betterment does not intend to provide the benefit of deferred compensation or to create an employee pension benefit plan under ERISA. Betterment offers a separate employee benefit plan, which may include a separate employer matching contribution, through the Betterment 401(k) Plan.

Betterment processes and treats the Betterment Match as interest earned by the Eligible IRA account for tax reporting purposes. The interest amount is based on a percentage of deposits made into the Eligible IRA account. The interest earned by the Eligible IRA account will not be subject to, or impact, the maximum annual dollar contribution limit or the maximum annual deductible amount. Please note that the Betterment Match may be taxable income if you convert a Traditional  IRA contribution to a Roth IRA and may be reflected on your tax forms as such. Betterment does not provide tax advice. Please consult a tax advisor.

This Betterment Match is not valid with other signup offers and is non-transferrable. The Betterment Match is available to U.S. residents only. Betterment reserves the right to terminate this offer at any time for any reason, to limit the Betterment Match you are eligible to receive, and to refuse or recover any Betterment Match amount if Betterment determines that it was obtained under wrongful or fraudulent circumstances, that any rules or regulations would be violated, or that any terms of the Betterment Account Agreements have been violated.

See Betterment's Form ADV Part II and the Betterment Match FAQs for additional information, including details on the deposit allocation methodology.