Technology-driven tax loss harvesting

ADVANCED TAX-SAVING STRATEGY What is Tax Loss Harvesting+?

Tax loss harvesting is the practice of selling a security that has experienced a loss. By realizing, or "harvesting" a loss, investors are able to offset taxes on both gains and income. The sold security is replaced by a similar one, ideally maintaining an optimal asset allocation and expected returns.

Tax savings can pay your fee.

78% of customers using our tax-loss harvesting feature had their taxable advisory fee covered by likely tax savings (in 2022).
Fee coverage and estimated tax savings based on Betterment internal calculations. See more in disclosures.
A glass of lemonade, with an overlay that indicates that tax losses have been harvested.
  • The upside to capital losses.

    Realized losses on investments can offset gains and reduce ordinary taxable income by as much as $3K per year.

  • Making it accessible.

    Tax Loss Harvesting+ is automated once enabled and available at no additional cost to investors who are managing money with us.

  • Optimizing the strategy.

    Tax Loss Harvesting+ looks for opportunities to harvest regularly and is designed to minimize tax impact.

Tax Loss Harvesting+ Traditional TLH
Automated algorithm that checks regularly
No extra trading costs to harvest losses
Every harvested dollar reinvested
No short-term capital gains tax
IRA harvest protection
Harvest rebalance
Customer-realized losses protected

Tax Loss Harvesting+ (TLH+) is not suitable for all investors. Consider your personal circumstances before deciding whether to utilize Betterment’s TLH+ feature.

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