Premium IRA Match Terms and Conditions

Updated October 17, 2024

These terms (the “Terms”) provide you with important information about the Betterment Premium IRA Deposit Match (the “Betterment Premium Match”) offered by Betterment LLC (“Betterment”) to Betterment clients who have elected to receive a Premium plan (or have upgraded their Premium plan) on or after April 25, 2024 and are eligible for additional benefits (“Premium Client”) on contributions to a Betterment Traditional or Roth individual retirement account (an “Eligible IRA”) as described below. In order to be eligible for a Premium plan and additional benefits, including the Betterment Premium Match, you must meet and maintain a minimum investing balance across eligible Betterment investing accounts of $100,000. By participating in the Betterment Premium Match, you understand and agree to these Terms.

  1. Offer.

If you are a Premium Client who has joined or upgraded a Premium plan since April 25, 2024, to qualify for the Betterment Premium Match, you will be automatically enrolled in the offer at 3:00 PM ET on October 10, 2024 (the “Offer Start Time”) and you must 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 new to Premium or have a legacy Premium account (i.e., you have not upgraded your Premium plan since April 25, 2024), to qualify for the Betterment Premium Match, you will be enrolled in the offer when you sign up for or upgrade your Premium plan on or after the Offer Start Time and complete one or more Eligible Contributions. However, new and existing Premium Clients who have previously enrolled in the Betterment 1% IRA Match offer (the “Betterment 1% IRA Match”) will be enrolled in the Betterment Premium Match offer as of the date they claimed the Betterment 1% IRA Match and only the Betterment Premium Match will apply to any Eligible Contributions (i.e., Eligible Contributions made after claiming the Betterment 1% IRA Match will count towards their Betterment Premium Match).

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 Premium 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 Premium 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 Premium Match of 3% 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 Premium Match will be reflected in whole cent increments. The Offer Period applicable to your account will begin when you are enrolled in the offer and ends at 11:59:59 PM ET on December 30, 2024. The Betterment Premium Match will be delivered to your Eligible IRA on or around December 31, 2024 (the “Match Date”). You must be a Premium Client as of the Match Date to receive the Betterment Premium Match (subject to other limitations as described in Section 2 of these Terms).

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 Premium Match offer are subject to these IRS contribution limitations. 

  1. Limitations.

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

  • A non-taxable fee will apply to the applicable IRA as payment for services from Betterment if, for any reason, you receive a Betterment Premium Match and you cease to be a Premium Client at any time prior to the end of two (2) years after the Match Date (the “Holding Period” and such fee, the “Premium Termination Match Fee”).
  • The Premium Termination Match Fee will be calculated as 2% times the value of the Eligible Contributions that received a Betterment Premium Match during the Offer Period. Once you are no longer a Premium Client and the Premium Termination Match Fee has been applied, any remaining amount of the Betterment Premium Match shall be subject to the Terms and Conditions of the Betterment 1% IRA Match.
  • A non-taxable fee will also apply to the applicable IRA as payment for services from Betterment if, for any reason, 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 the Holding Period (the “Early IRA Match Removal Fee”).
  • The Early IRA Match Removal Fee will be calculated based on the amount of the net Eligible Contributions that received a Betterment Premium 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 3% 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 3%), up to the value you receive in the Betterment Premium Match.
    • 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 3% of the value of the withdrawal or transfer, up to the value of the Betterment Premium 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.
    • 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.
  • By agreeing to participate in the Betterment Premium Match, you, as a fiduciary to your individual retirement account, understand and agree that the Premium Termination Match Fee and Early IRA Match Removal Fee (together, the “Premium Match Service Fees”) are reasonable fees for Betterment’s services to your Eligible IRA.
  • Each Premium Match Service Fee is separate from and above any ACATs fees and investment management fees.
  • In no event will the aggregate amount of the Premium Match Service Fees exceed the amount of the Betterment Premium Match.
  • In the event that your Eligible IRA is subject to a Premium IRA Match Service 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 applicable Premium Match Service Fee.

  1. Miscellaneous.

The Betterment Premium 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 Premium 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 Premium 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 Premium 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 Premium 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 Premium Match is non-transferrable. The Betterment Premium 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 Premium Match you are eligible to receive, and to refuse or recover any Betterment Premium 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.