Yes, you can transfer an Inherited IRA (sometimes known as a Beneficiary IRA) to Betterment. We recommend always using a trustee-to-trustee transfer. Your client’s current provider will send us a check of their funds directly, for your client’s benefit. We will assist you throughout the set up and transfer process. To get started, please email support with the following information:
1) Name of current provider:
2) Type of IRA (Traditional or Roth):
3) The IRA account number at the current provider:
4) Indicate "full" or partial transfer, and exact amount to transfer if partial:
5) Name of original IRA account holder:
Required Minimum Distribution Calculations
With Inherited IRAs, the owner may need to take Required Minimum Distributions (RMDs). At this time, Betterment does not calculate of RMDs for Inherited IRAs, though we hope to provide this feature in the future. However, we can provide guidance on how to do this calculation. Details are included in the “IRA beneficiaries” section of IRS Publication 590. We will provide the fair market value of the IRA as of December 31st of every year with the client’s tax forms.
Contributions to Inherited IRAs
According to IRS rules, clients cannot contribute further to their Inherited IRA at Betterment.