Betterment uses the Automated Customer Account Transfer Service (ACATS) to electronically transfer your assets and cash when possible. ACATS transfers are typically faster and more convenient than other types of transfers.
Here's How the ACATS Transfer Process Works:
1. Notifying Your Current Provider:
- We notify your current provider about the accounts you want to transfer.
- You don’t need to worry about paperwork—usually, we handle everything.
- You can request a full or partial transfer.
- See Account Eligibility for a list of eligible accounts.
- Note: In some cases, human support or paperwork may be required.
2. Transfer by Your Current Provider:
- Your current provider reviews the request and sends us your investments and any cash in your accounts.
- The transfer typically takes 5-6 business days to complete.
- Your investments stay invested throughout the process.
3. Aligning Your Investments to Your Betterment Portfolio:
- Once we receive the assets, we align them with your target portfolio at Betterment.
- Any cash received is automatically reinvested as soon as possible.
- For taxable accounts, if your current investments include ETFs that match
Betterment’s portfolio strategy, we incorporate them into your portfolio. We may still sell some investments to align your portfolio with your target asset allocation. - For ETFs or mutual funds that don’t match Betterment’s strategy, we try to sell
shares trading at a loss or shares you’ve held for at least a year. This helps avoid
short-term capital gains, which are taxed at a higher rate than long-term gains. We
won’t sell shares that are trading at a short-term gain. Over time, we’ll continue to
monitor and rebalance your portfolio as needed.
Need Assistance?
Our transfer team is here to help! If you have any questions or need support, reach out to us at transfers@betterment.com.
Important: Betterment is not a licensed tax advisor. The information provided here is for educational purposes and should not be considered tax advice.
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