Rollover IRA Reward Terms & Conditions

These terms (the “Terms”) provide you with important information about the Betterment IRA Rollover Reward 2025 (the “Rollover Reward”) offered by Betterment LLC (“Betterment”). By participating in the Rollover Reward, you understand and agree to these Terms.

1. Offer

If you are an existing Betterment client with a funded investing account, to qualify for the Rollover Reward, you must fulfill the offer by clicking on the offer link in your email or by clicking the corresponding offer message in the Betterment app by April 30, 2025, and complete Qualified Deposits (as defined below) into a Betterment traditional, Roth, or SEP individual retirement account (“Eligible IRA”) in the aggregate of at least $40,000 within 60 days of enrolling in the offer, inclusive of the required settlement time (typically 2 to 3 business days) (the “Offer Period”). This offer is only available to existing Betterment investing clients who make a Qualified Deposit (as defined below) to an Eligible IRA within the Offer Period. Taxable investing accounts, 401(k) accounts, Inherited IRAs, and IRAs managed with a third-party Advisor through the Betterment Advisor Solutions platform are not eligible accounts for this offer. 

A “Qualified Deposit” is a deposit of new funds to an Eligible IRA, including rollovers and transfers of cash or investments from other external accounts, such as an external IRA or employer plan. A Qualified Deposit, including rollovers or transfers of cash or investments from external accounts, must be initiated on Betterment’s interface after enrolling in the offer. Internal transfers from a Betterment Cash Reserve account or Betterment Checking account into an Eligible IRA are not Qualified Deposits. If you successfully enroll and complete a Qualified Deposit into an Eligible IRA, the Rollover Reward will be delivered to the applicable Eligible IRA (as described below) on or around 60 days after enrolling in the offer (the “Reward Date”).

If you make one or more Qualified Deposits, Betterment will provide a Rollover Reward that varies based on the value of your net Qualified Deposits to all Eligible IRAs during the Offer Period, less any withdrawals you make from any Eligible IRA prior to the Reward Date, and subject to a 3-year holding period, as discussed below. The minimum net Qualified Deposits to receive a Rollover Reward is $40,000, and the following table shows the total amount of the Rollover Reward you are eligible to receive relative to the total net Qualified Deposits that you make across all Eligible IRAs.

*Reward amounts not cumulative. 

For purposes of determining your Rollover Reward, your net Qualified Deposits will be rounded down to the nearest whole dollar. If you make Qualified Deposits to more than one Eligible IRA, the total amount of the Rollover Reward will be delivered to the open and funded Eligible IRA in the following order of priority: (1) Roth IRA, (2) traditional IRA, (3) SEP IRA. That means that if you have a Roth IRA, traditional IRA, and a SEP IRA that are all funded on the Reward Date, the Rollover Reward will be delivered to your Roth IRA. Alternatively, if you have only a traditional IRA, the Rollover Reward will be delivered to your traditional IRA.

2. Limitations

There are certain limitations on the Rollover Reward that you should be aware of:

• A non-taxable fee will apply to the applicable Eligible IRA(s) as payment for services from Betterment if, for any reason, you transfer or distribute some or all of your net Qualified Deposits or Rollover Reward to an account outside of the Eligible IRA(s), including internal transfers to a Betterment account that is not among the Eligible IRAs, at any time prior to the end of three (3) years after the Reward Date (the “Holding Period” and such fee, the “Early Removal Fee”).
• The Early Removal Fee is separate from and in addition to any ACATs fees and investment management fees to which your account is subject. The Early Removal Fee will be determined based on the net amount of Qualified Deposits remaining in all Eligible IRAs after giving effect to the net withdrawal (taking into account the amount of any subsequent deposits, including rollovers and transfers) during the Holding Period. The Early Removal Fee will be equal to the difference between the Rollover Reward applicable to the tiers of Total Net Qualified Deposits (i.e.,  the value of the Rollover Reward originally received LESS the value of the Rollover Reward applicable to the total amount of net Qualified Deposits remaining in all Eligible IRAs after the net withdrawal (i.e., the withdrawal or transfer less any additional deposits, transfers or market gains applicable to the account), up to the total value of the Rollover Reward received). 
   
  • This means if you don’t make any additional deposits or transfers and have no market gains after the Reward Date and you withdraw from or transfer out funds during the Holding Period from your Eligible IRA, an Early Removal Fee will be applied to the Eligible IRA equal to the value of the Rollover Reward remaining across the Eligible IRAs less the value of the Rollover Reward applicable to the net Qualified Deposits remaining across all Eligible IRAs, up to the value of the Rollover Reward.
     
    • For example, on an original Net Qualified Deposit of $75,000, you would receive a Rollover Reward of $300. If you made a $2,000 withdrawal within the Holding Period, your remaining Net Qualified Deposit is $73,000, and the withdrawal is charged a $150 Early Removal Fee, which represents the difference between $300 (the Rollover Reward you received) and $150 (the Rollover Reward attributable to a $73,000 Net Qualified Deposit).
• However, in the event that the Early Removal Fee is greater than or equal to the total amount of the withdrawal, the withdrawal will be charged a fee that is 80% of the value of the total withdrawal (a “Partial Fee”) and such amount will be deducted from the total Early Removal Fee due (such amount, the “Remaining Early Removal Fee”). Any subsequent withdrawals will be charged either the Remaining Early Removal Fee or a Partial Fee in accordance with these Terms, up to the total amount of the Early Removal Fee due.
• If you make a withdrawal that takes you below the $40K minimum Net Qualified Deposit amount, the full reward is deducted (subject to the conditions described above).
• However, if your withdrawal or transfer out is equal to or less than net deposits made or market gains earned during the Holding Period at the time of such withdrawal or transfer out, no Early Removal Fee will be applied to your Eligible IRA. Alternatively, if your withdrawal exceeds any net deposits and market gains during the Holding Period, an Early Removal Fee will be applied to your Eligible IRA.
• If you make multiple withdrawals or transfers out of your Eligible IRA during the Holding Period, each withdrawal may be subject to an Early Removal Fee, subject to the conditions described above.
• The Early 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 Removal Fee, including distributions that may be required by law, such as required minimum distributions.
• In no event will the aggregate amount of the Early Removal Fee exceed the amount of the Rollover Reward received.
• Transfers or conversions between Eligible IRAs (e.g. a traditional to Roth IRA conversion) prior to the end of the Holding Period will not result in an Early Removal Fee. Such transferred amount of Qualified Deposits will remain subject to these terms and any Early Removal Fee applied in connection with the withdrawal of these funds during the Holding Period will be applied to the receiving Eligible IRA.
• By agreeing to participate in the Rollover Reward, and electing to deposit into an individual retirement account, you, as a fiduciary to your individual retirement account, understand and agree that the Early Removal Fee is a reasonable fee for Betterment’s services to your Eligible IRA.
• In the event that your Eligible IRA is subject to an Early 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 Removal Fee.
  
  

The Rollover Reward 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 investing account. By participating in the Rollover Reward, you represent that neither Betterment nor any Betterment affiliate has made a recommendation that you invest in or open a Betterment investing account, or rollover or transfer assets to Betterment.

By offering the Rollover Reward for Qualified Deposits to Betterment IRAs, 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 Rollover Reward as interest earned by the Eligible IRA for tax reporting purposes. The interest amount is based on deposits made into the Eligible IRA. The interest earned by an Eligible IRA that is an IRA will not be subject to, or impact, the maximum annual dollar contribution limit or the maximum annual deductible amount. Please note that the Rollover Reward 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 Rollover Reward is not valid with other individual investing account signup offers or other retirement account offers, and is non-transferrable. The Rollover Reward is available to U.S. residents only. Betterment reserves the right to terminate this offer at any time for any reason, to limit the Rollover Reward you are eligible to receive, and to refuse or recover any Rollover Reward 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 Rollover Reward FAQs for additional information, including details on the deposit allocation methodology.