ACATS Transfers

Electronic investment transfer service for eligible accounts

Getting started

Accounts eligible for ACATS transfers to another provider

Mainly, ACATS transfers occur between corresponding account types. For example, an individual taxable account can be transferred to an individual taxable account, but cannot be transferred to a Roth IRA.  Please note that some Betterment accounts are ineligible for ACATS transfers to other providers. These ineligible account types are listed below.  Cash Reserve or cash goal Cash Reserve accounts exist within the same legal account as investment accounts. If Betterment receives a request for a ...

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Accounts eligible for ACATS transfers to Betterment

Betterment has the ability to electronically transfer many ETFs and cash, as well as many mutual funds and single stocks, provided they are held in an ACATS-eligible account. When determining if your account is eligible for an ACATS transfer, we verify that the account meets all of the following requirements: Held by a provider that supports ACATS transfers. Classified as an ACAT-eligible brokerage account by your current provider. Legacy mutual fund accounts, annuities, and employer-sponsored ...

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How it works

How can I transfer out funds if my new provider is unable to complete my ACATS request?

In-kind transfers from Betterment to another provider can only be executed via the ACATS system. However, ACATS transfers may not be supported in all cases. If you are attempting to transfer funds to a new provider, but they are unable to fulfill your ACATS request or ACATS is otherwise unavailable, please see the instructions below depending on the account type you are transferring out.  Please note that Betterment does not charge any transaction or liquidation fees. Transferring a taxable ...

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How are account management fees assessed following my ACATS transfer out of Betterment?

Following a full in-kind legal account transfer, you may still see residual positions in the form of fractional shares in your account. Since the ACATS system only supports whole share transfers, the fractional share values will be liquidated shortly after a full transfer. Betterment will collect any accrued management fees from the fractional share liquidation, then send the remaining cash proceeds to the receiving firm via ACATS. Following a partial transfer, accrued management fees will be ...

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How do I transfer funds to another provider via ACATS?

Below, we'll walk you through how to transfer your funds out to another provider using the ACATS method (Automated Customer Account Transfer Service). Please note that the following instructions only apply to stock and bond taxable accounts or IRAs.  If you would like to transfer out your Betterment 401(k), please see the “Moving money out” section of our 401(k) Participant FAQs.  Crypto accounts cannot be transferred to another provider and must be withdrawn to a connected bank account. For ...

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How to begin an ACATS transfer to Betterment

Here are the key steps to begin the paperless ACATS transfer process. 1. Make sure you have a connected account. To instantly connect an account, log in on a web browser, scroll down to the Connected Accounts section, and click “Connect accounts.” 2. Review your account’s eligibility and initiate the transfer. Select “Transfers” from your Menu bar and then navigate to the section titled “Transfer a connected account”. Individual Taxable Account: If your individual taxable account is fully ...

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How ACATS transfers work for transferring funds to Betterment

When possible, we use the ACATS method (Automated Customer Account Transfer Service), to electronically transfer assets and cash to Betterment. Generally, an ACATS transfer is faster and more convenient than other types of transfers. Here’s an overview of how Betterment's ACATS transfer process works. Please see our full ACATS terms and conditions for more information. 1. We’ll notify your current provider of the account(s) that you’d like to transfer. We can do all the heavy lifting—usually ...

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How to begin a manual ACATS transfer to Betterment?

Please email transfers@betterment.com to begin a conversation with a transfer specialist. You’ll be asked to securely upload your most recent account statement for review, after which personalized transfer guidance will be provided. Note: If you are looking to move an account that’s $100,000 or greater in value, feel free to request assistance from our Licensed Concierge team directly. As always, our transfer team is available to assist as needed. Please do not hesitate to reach out to ...

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Managing my account

Can I transfer out an account that's been Tax-Coordinated?

Yes, you can. Transferring an account out of a Tax-Coordinated goal can cause rebalancing within the Tax-Coordinated Portfolio (“TCP”) in order to ensure that your TCP has a fully diversified portfolio of holdings at the target stock/bond allocation that you set. If there is a funded taxable account in the TCP, the rebalancing may be a taxable event. If your Tax-Coordinated retirement goal holds both an IRA and a taxable account, transferring out the IRA can cause the taxable account to ...

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Tax information

Tax implications of moving an account through the ACATS system

When deciding to switch from another provider, it’s smart to consider the benefits alongside any potential tax implications. IRA Accounts: Since we use the direct trustee-to-trustee transfer process, to move IRA accounts electronically to Betterment, there are generally no taxes or penalties to make the switch. Once we receive your IRA transfer(s), we will sell any investments moved in-kind and then use your cash proceeds to buy new shares of the ETFs that make up your target Betterment IRA ...

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