How do I transfer out funds to another provider?

Here, we'll walk you through how to transfer your funds out to another provider.

Transferring your Betterment IRA to an IRA at another provider

You will first need to reach out to your receiving institution and request to have your assets transferred out of Betterment to the new provider. They will need to know your Betterment account number, which can be found in “Settings.” There are never any fees to transfer out or close your account.

For IRA to IRA transfers, we’ll use the direct transfer process and send a check, to avoid any tax consequence for you. At this time, we aren’t able to transfer IRAs in-kind to your new provider.

What we need:

  • Transfer paperwork (from the receiving institution) that also includes a copy of the first page of your most recent Betterment statement, which you can find in Documents.
  • If you are transferring out more than $250,000, the transfer paperwork will need to be medallion signature guaranteed.
  • If you are transferring out less than $250,000, please simply send your completed original transfer paperwork.

All outgoing transfer paperwork must be mailed to:

Standard Mail

Betterment Transfers

PO Box 207691

Dallas TX 75320-7691

Overnight Mail

Betterment Transfers

Wells Fargo Lockbox

2975 Regent Blvd

Suite 100

Lockbox Services 207691

Irving TX 75063

Transferring your Betterment IRA to a 401(k) or another employer-sponsored plan at another provider

Note that Roth IRAs cannot be transferred into 401(k)s, even if it’s a Roth 401(k), due to IRS rules.

Here’s what we need to transfer your Traditional IRA to your Traditional 401(k):

  • An acceptance letter from your new provider.
  • A copy of a Betterment account statement, which you can find in Documents.
  • A signed letter from you authorizing the rollover. This should reference the words, “I authorize the transfer of assets from my Betterment Traditional IRA (or SEP IRA) account into my 401(k)/employer sponsored plan.”
    • If you are transferring out more than $250,000, the signed authorization letter will need to be medallion signature guaranteed.

All outgoing transfer paperwork must be mailed to:

Standard Mail

Betterment Transfers

PO Box 207691

Dallas TX 75320-7691

Overnight Mail

Betterment Transfers

Wells Fargo Lockbox

2975 Regent Blvd

Suite 100

Lockbox Services 207691

Irving TX 75063

Transferring your Betterment taxable account (non-IRA) to a taxable account (non-IRA) at another provider

For taxable (non-IRA) account transfers, we can only process full, in-kind transfers. This means we can only process transfer paperwork requesting the transfer of all shares in your taxable account directly to another institution. Please note, however, we cannot transfer fractional shares.

Requests to transfer specific shares or a partial amount from a taxable (non-IRA) account will be rejected. Additionally, requests to liquidate the shares and send a check to the new provider will either be rejected or the shares will be sent in-kind. If you wish to liquidate shares in your taxable account, you can do so by going to Transfer or rollover > Withdraw and withdrawing them to a linked bank account in your name.

Requesting the transfer:

You will first need to reach out to your receiving institution and request to have your assets transferred out of Betterment to the new provider. Please remember that the receiving institution should request a transfer of the full account, as we cannot accommodate partial transfer requests for taxable accounts. They will need to know your Betterment account number, which can be found in Settings > Accounts. There are never any fees to transfer out or close your account.

For non-IRA transfers, we will transfer only full shares directly to another institution: we cannot transfer partial shares.

What we need:

  • Transfer paperwork (from the receiving institution)
  • A copy of the first page of your most recent Betterment statement, which you can find on your Activity page.
  • A medallion signature guarantee on the transfer paperwork (if you are transferring out more than $250,000)
  • A notary stamp or medallion signature guarantee (if the non-IRA transfer is less than $250,000).

All outgoing transfer paperwork must be mailed to:

Standard Mail

Betterment Transfers

PO Box 207691

Dallas TX 75320-7691

Overnight Mail

Betterment Transfers

Wells Fargo Lockbox

2975 Regent Blvd

Suite 100

Lockbox Services 207691

Irving TX 75063

Joint Accounts:

Joint accounts at Betterment can only be transferred to joint accounts at another provider, though we can accommodate requests to transfer an individual account at Betterment to a joint account at another provider if requested.

Common Reasons for Rejected Taxable Account Transfer Requests:

While we certainly want to honor our customers' requests to transfer their accounts, there are certain requests that we have to reject because they are not submitted in an acceptable manner and/or not a supported transfer type. Below are the most common reasons taxable account transfer requests are rejected:

  • The transfer paperwork is not notarized or medallion signature guaranteed.
      • For taxable (non-IRA) accounts, if your transfer is less than $250k, the paperwork can have either a notary signature OR a medallion signature guarantee; it must have one of them. Transfers over $250k are required to have a medallion signature guarantee. Notary stamps are not acceptable for taxable account transfers over $250k.
  • The requested transfer is for a partial amount, or lists only specific shares to be transferred.
      • We are unable to transfer out a partial amount from a taxable account in-kind. To transfer a taxable account in-kind, it has to be the full account.
  • The requested transfer is from a joint account to a personal account.
      • For the security of your accounts, we will not remove ownership of an account during an account transfer. In order to transfer a joint account from Betterment, the receiving account needs to also be a joint account.
  • The transfer request instructs us to liquidate the funds and send a check to your new provider.
      • Taxable accounts can be liquidated directly in your account by going to Transfer or rollover > Withdraw. Because this can potentially cause a large taxable event, we require our customers to liquidate the accounts themselves. This is also faster and more convenient, as the withdrawals generally complete in 4-5 business days and can be redeposited at the new provider at your convenience.
  • The only funds in the account are Cash Reserve or cash goal funds.

Cash reserve or cash goal funds cannot be transferred out in-kind. To transfer out any cash that is held in your taxable account, please log in and go to Transfer or Rollover > Withdraw and withdraw it to your linked bank account.

What is a medallion signature guarantee?

A medallion signature guarantee is an extra level of security to prevent the unauthorized transfer of your assets. You can obtain a one at a local financial institution with which you have an account. You will need to bring a statement from your current IRA provider to obtain a medallion signature guarantee.

Learn more about medallion signature guarantees.