Transferring an account to Betterment is usually straightforward—but sometimes a transfer gets rejected before it goes through.
The good news: most rejections are easy to fix once you know what to look for. Below are the most common reasons transfers are rejected, along with steps you can take to avoid delays.
Your account number doesn’t match
This is one of the most common reasons for rejection. The account number on your transfer request must exactly match the account number on file at your current institution—including any leading zeros, letters, or formatting.
Even a small difference can cause the transfer to fail. Some institutions may also have multiple account numbers, so it’s important to use the one associated with your brokerage account.
What to do:
Double-check your account number using a recent statement or by logging into your current brokerage account. If you need help locating it, refer to our guide on finding your account number.
Your assets can’t be transferred as-is
In some cases, a transfer is rejected because certain assets can’t be moved in their current form. This may include proprietary funds, options, corporate bonds, penny stocks, certain annuities, or other non-transferable investments.
What to do:
Review the holdings in your account before initiating a transfer. If you’re unsure whether an asset can be transferred, it may need to be liquidated first. You can also reach out to us—we’re happy to help you determine the best path forward.
The account title doesn’t match
The name on your Betterment account must match the name on your external account exactly. Differences like a missing middle initial, nickname, or recent name change can lead to a rejection.
What to do:
Make sure your name is listed consistently across both accounts. If you’ve recently updated your name, you may need to update it with one or both institutions before retrying your transfer.
Your account types don’t match
ACATS transfers require that the account types match on both ends. For example, a Traditional IRA must transfer into a Traditional IRA—not into an individual taxable account.
What to do:
Confirm that you’re transferring between like account types (e.g., IRA to IRA, individual to individual, joint to joint). If you’re unsure what type of account you have, check a recent statement or contact your current provider. If you’re trying to move between different account types, we can help you explore the right approach.
Your account has a zero balance
If your account is empty when the transfer is processed, there’s nothing to move. This can happen if funds were withdrawn, assets were liquidated, or another transfer has already cleared the account.
What to do:
Make sure your account still holds assets when you submit your transfer request. It’s also best to avoid withdrawals or trades while a transfer is in progress.
A duplicate request was submitted
Submitting multiple transfer requests for the same account can result in a rejection if one is already in progress.
What to do:
Check whether you already have an open transfer before submitting a new one. If you need to make changes, contact us—we can help update your existing request.
Your account is already in a transfer or distribution
If your account is currently being transferred elsewhere or a distribution is in progress, it can’t be transferred again at the same time.
What to do:
Wait for any existing transfers or distributions to fully complete before starting a new one.
A signature or authorization is missing
Some transfers require a signature or additional authorization. If anything is missing or incomplete, the transfer may be rejected.
What to do:
Carefully review all required steps and documents before submitting. If a signature is needed, make sure it’s included and clearly visible.
Documentation is missing
Certain account types—like inherited accounts or accounts with special ownership structures—require additional documentation.
What to do:
Check whether your account requires supporting documents. Common examples include death certificates for inherited accounts or trust documents for trust accounts.
Your SSN or Tax ID doesn’t match
If the Social Security Number or Tax ID on your transfer request doesn’t match what’s on file at your current institution, the transfer will be rejected.
What to do:
Ensure your tax information is consistent across both accounts. If there’s a mismatch, you may need to update your information before resubmitting.
Your account isn’t a brokerage account
ACATS transfers only apply to brokerage accounts. Accounts like 401(k)s, annuities, or CDs can’t be transferred using ACATS.
What to do:
Confirm the type of account you’re transferring. If it’s a retirement plan like a 401(k), you’ll likely need to complete a rollover instead. If you’re unsure, we can help point you in the right direction.
The delivering firm isn’t correct
If the institution listed on your transfer request doesn’t match where your account is actually held, the transfer will fail.
What to do:
Verify the exact name of your financial institution using a recent statement. Firm names can be easy to mix up, so it’s worth double-checking before submitting.
Business account transfers need additional details
Business account transfers require specific information to be included in the memo field.
What to include:
- Business name
- Employer Identification Number (EIN)
- Name of the authorized signer
- Confirmation of who signed the Transfer Initiation Form (TIF)
Missing any of this information is a common reason for rejection.
What happens if your transfer is rejected?
If your transfer is rejected, we’ll let you know with next steps.
In many cases, you can correct the issue and resubmit. While we work behind the scenes to help catch common issues before they cause delays, some rejections can only be identified by the delivering institution. If you’re unsure what caused the rejection or how to fix it, our support team is here to help.