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# Betterment Gets Better: IRAs and New Pricing Structure

The revolutionary personal investing service Betterment just improved their offer.

Today they are announcing a new, lower pricing structure ranging from 0.15% to 0.35%.

They are also introducing IRAs, giving you the ability to use Betterment as a full-fledged, tax-advantaged retirement account.

Here are the details.

Fees – Betterment used to charge 0.3% to 0.9%, depending on your account balance. Now they are charging from 0.15% to 0.35%. They categorize their fees based on the type of user you are: “Builder,” “Better,” and “Best.” Here’s the visual:

At a flat 0.15%, Betterment is competing with the low-cost ETFs you would get from companies like Vanguard. It actually rivals my low-cost target date fund. This new pricing essentially cuts the old model in half, and then some. Kudos to Betterment for making their service more affordable.

Note that the minimum balance still drives the rate, but it also entitles you to some other services: next-day transfers and a custom portfolio. I was told by the Betterment team that if you want these additional services, but don’t qualify based on your balance, you can pay a monthly fee in lieu of the fees above to get them.

A couple of other things to point out: for the first 30 days under Betterment you can get the account for free; also, existing customers can stay put in their old pricing plan if they want to.

IRAs – Existing customers have known about this for a few months. But now as a new customer to Betterment, you can come on-board starting with an IRA (both Traditional and Roth). This means you can also rollover your 401K or existing IRA to a Betterment IRA.

In my book, adding the ability to invest with an IRA through Betterment is huge. As you guys know, I don’t see much use for taxable investing. So this is a welcome change for me.

If you read my in-depth review of Betterment, you might remember that two of the negatives that I mentioned were pricing and no IRAs. With these new changes they’ve dramatically improved their service, making it worthy of a second look if you’re looking for a place to start investing or rollover an account.

Note that Betterment is still offering a $25 bonus to new accounts opened with at least$250.*

What do you think of the changes Betterment is implementing? Would you be more apt to try their service, given the new IRAs and pricing?