Betterment uses Millennium Trust Company, LLC as our IRA administrator and custodian for our IRA accounts. When it comes to an IRA, there are two types of “custodians” playing complimentary roles in ensuring the proper administration and effective management of your account.
An IRA is essentially a trust account - an account set aside for a beneficiary (you) for a later time - that receives tax-advantaged benefits in exchange for complying with contribution and distribution restrictions. As such, there is a necessity to ensure the IRA account is administered properly with regards to IRS requirements, which is why we use Millennium Trust Company, LLC as our IRA administrator custodian. The funds themselves are held and managed by Betterment, who is the broker-dealer custodian.