SAVE YOUR SAVINGS FROM FIDELITY

If your Fidelity account has high 401(k) fees, don’t let them drain your retirement savings. Compared to the common Fidelity Freedom Fund, rolling over to a Betterment IRA could save 23% in fees1 annually.

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Get up to 1 year managed free when you roll over.

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Retire with more by saving on fees.

Rolling over to a low-cost IRA from an 401(k) invested in a Fidelity Freedom Fund could mean 23% lower annual fees—which makes a big difference at retirement.

Betterment's recommended portfolio in an Betterment IRA

Betterment IRA targeting 25 years until retirement using the Betterment Portfolio Strategy

Fidelity Freedom Fund in a Fidelity 401(k)

Average 401(k) as determined by an independent industry study

Current amount invested

Betterment's recommended portfolio in an Betterment IRA

$100,000

Fidelity Freedom Fund in a Fidelity 401(k)

$100,000

Management fee

Betterment's recommended portfolio in an Betterment IRA

0.25%

Fidelity Freedom Fund in a Fidelity 401(k)

See row below

Average expense ratio on funds

Betterment's recommended portfolio in an Betterment IRA

0.12%

Fidelity Freedom Fund in a Fidelity 401(k)

Fees on a Fidelity Freedom Fund in a 401(k), inclusive of management and fund costs
0.60%

Estimated annual cost after one year2

Betterment's recommended portfolio in an Betterment IRA

$400

Fidelity Freedom Fund in a Fidelity 401(k)

$648

Estimated annual cost after 25 years2

Betterment's recommended portfolio in an Betterment IRA

$2,318

Fidelity Freedom Fund in a Fidelity 401(k)

$3,556

Automatic rebalancing

Rebalancing in both Fidelity Freedom Funds and Betterment is automatic. However, Betterment’s rebalancing uses a process that maximizes tax efficiency.

Betterment's recommended portfolio in an Betterment IRA
Fidelity Freedom Fund in a Fidelity 401(k)

Asset location

Tax-coordinating IRAs with taxable retirement accounts is a standard part of Betterment’s retirement planning tools.

Betterment's recommended portfolio in an Betterment IRA
Fidelity Freedom Fund in a Fidelity 401(k)

Smart retirement withdrawals

Betterment’s retirement accounts feature tax-efficient retirement withdrawals. Fidelity Freedom Funds have no tax lot management to control withdrawals.

Betterment's recommended portfolio in an Betterment IRA
Fidelity Freedom Fund in a Fidelity 401(k)

Personalized allocation adjustment

Betterment’s allocation adjusting is automated based on your personal retirement goal date. A target-date fund, like the Fidelity Freedom fund does offers only a generic allocation adjustment over time.

Betterment's recommended portfolio in an Betterment IRA
Fidelity Freedom Fund in a Fidelity 401(k)

Personalized financial planning for the modern investor.

We provide personalized investment advice that’s grounded in Nobel-prize winning research. Your plan is tailored to your preferences and managed with our groundbreaking technology, which automatically adjusts and rebalances your portfolio. And because we’re able to keep costs low and automate tax-savings—you can keep more of what you earn.

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Advice you can trust.

We're a fiduciary, which means we act in your best interest. We're not incentivized to recommend certain funds, and we don't have our own investment products to sell. That means we'll do what we believe is right for you.

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Start a rollover or IRA transfer in 60 seconds

For 50+ providers, IRA transfers to Betterment are automated and can be initiated in as little as 60 seconds. For other providers, we make it easier by giving you what you need to complete the transfer.

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Frequently asked questions

"How is a Betterment IRA better than a typical 401(k)?"

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"What types of retirement accounts can I roll my 401(k) into?"

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"Are there deposit, withdrawals, or ETF fees?"

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1 The table above shows the estimated costs for one year and 25 years with an initial balance of $100,0000. The fee comparison assumes a hypothetical 8% annualized, total rate of return—including market changes, dividends reinvested, and impact of trading. Other income is not considered. The calculation reduces the total return by the average plan-weighted annual fee for all Fidelity Freedom Funds (assuming no additional management fees for the 401(k) itself) and a Betterment fee of 0.37% (0.25% Betterment management fee plus average fund level expenses of 0.12%). Betterment's annual advisory fee is 0.25% for its Digital Plan, and fees for the underlying investments total between 0.07% and 0.15%. See pricing details.

Estimated annual costs assume that the investor has no additional deposits after the initial deposit of $100,000 and makes no withdrawals. The estimates also exclude any potential matching funds from an employer. This calculation assumes billing is done annually, at the end of the year. This calculation is hypothetical in nature and does not reflect actual results.

2 When deciding whether to roll over a retirement account, you should carefully consider your personal situation and preferences. The information on this page is being provided for general informational purposes and is not intended to be an individualized recommendation that you take any particular action. Factors that you should consider in evaluating a potential rollover include: available investment options, fees and expenses, services, withdrawal penalties, protections from creditors and legal judgments, required minimum distributions, and treatment of employer stock. Before deciding to roll over, you should research the details of your current retirement account and consult tax and other advisors with any questions about your personal situation.