Betterment uses a direct transfer process to transfer existing IRAs or employer-sponsored plans into Betterment IRA accounts. These transfers are non-reportable transactions, which avoids any tax consequences for the client. In a direct transfer, the current IRA provider generally sends Betterment a check or wire for the value of the account. When possible, Betterment will use ACATS to make the transfer process even more efficient. Review the IRAs we currently support with ACATS here.
If your client does not already have an IRA in their Betterment account to receive the funds, please add the IRA before proceeding through the rollover flow. Please follow the steps below to generate rollover instructions on behalf of your client:
- Log in to your advisor dashboard.
- Choose the Household that you are planning to roll the account into.
- Click ‘Client actions’ and then ‘Transfer or rollover’ from the dropdown menu.
- Choose the account type. All employer-sponsored plans should select 401(k).
- Select the contribution type.
- Select or search for the client’s current provider.
- Enter the account number, designate if it is a full or partial transfer, and provide the estimated balance of the account.
- Review the transfer details and generate the transfer request paperwork. Your client will receive an email to complete the account opening process and download the transfer paperwork.
- Have your client fill out the paperwork and send it in the mail to their current provider.
After the paperwork has been mailed, it may take up to 3 weeks to receive the funds from the current provider. We will email you and the client when the check has arrived.