What does Betterment do for me when I roll a 401(k) over, and what will I pay?

By Kaz · Published 6 October 2026 · How this site checks figures

Summary

Betterment invests the rollover for you once it arrives, typically within 1 to 3 business days, and for "select providers" it also automates the request to the old plan; with any other provider you get an emailed checklist and make the calls yourself. Afterward you pay Betterment's advisory fee, which its pricing page, checked October 6, 2026, lists as 0.25% a year, or $5 a month on balances under $24,000 unless you set up deposits of $200 or more a month. The ETFs in the portfolio charge their own expense ratios on top of that fee, and moving the IRA out later costs $75.

How long each stage takes

Betterment publishes its own estimates for each step. Put in order, they look like this:

Stage	Who does it	Betterment's estimate
Asking the old plan for a rollover	Betterment, for select providers; you, for the rest	No estimate given
Old plan sells the funds and mails a check	The old plan	Ask them; Betterment suggests confirming "the liquidation date"
Check reaches Betterment and settles	Mail and Betterment	"7-10 business days after the funds have left your old provider"
Money is invested	Betterment	"typically invested within 1-3 business days"

A separate Betterment page puts the whole direct rollover at "3-4 weeks" when the old provider mails a check. Most of that time sits with the old plan, which is why Betterment points you at the liquidation date. For rollover status questions it gives an email address, rollovers@betterment.com.

What is automatic and what isn't

The investing is automatic. When money lands, Betterment Securities buys ETFs in the stock and bond mix you've set, keeping "a small operational cash allocation" that pays fees and withdrawals before any shares need selling. You don't place the trades.

The request to the old plan is automatic only sometimes. Betterment says the process "is currently automated for rollovers from select providers," without listing which. For everything else, the steps are the usual ones: the old provider sends a check "for your benefit" to Betterment, following instructions Betterment emails you.

The account type is not flexible. In Betterment's words, "Traditional funds must be rolled over into a Traditional IRA and Roth funds must be rolled over into a Roth IRA." If you aren't sure which kind of money you have, the old plan's statement or HR can tell you, and the page on whether a rollover is taxable explains what happens if the types get mixed.

The free help, and how it is paid

For moves of $20,000 or more, Betterment offers a call with its Licensed Concierge team at no charge. Its rollover page also discloses that the team "receives compensation based on transferred funds," while saying team members must act in the client's best interest. So the people advising on whether to move the money are paid more when it moves.

What you pay afterward

Balance in Betterment investing accounts	Yearly cost on the pricing page (checked October 6, 2026)
$15,000, no recurring deposit	$5 × 12 = $60, or 0.40%
$15,000, with $200+ a month deposited	0.25% = $37.50
$24,000	0.25% = $60
$100,000	0.25% = $250
$100,000 on the Premium plan	0.65% = $650

These are Betterment's advisory fees only; the ETF expense ratios are extra. The robo-advisor IRA fees in dollars puts Betterment next to six other services. For a 25-year view of 0.25% on your own balance, try the fee calculator.

One page doesn't match. Betterment's help article for people leaving a Betterment-run workplace 401(k) says a rollover into a Betterment IRA is subject to "$4 per month pricing unless your account balance exceeds $20,000" or there's a qualifying recurring deposit. The main pricing page says $5 and $24,000. Neither page refers to the other; if your balance is between $20,000 and $24,000, ask which applies to your account.

Leaving is $75 per account, on Betterment's transfer help page checked October 6, 2026. The transfer-out fees at ten brokers has the comparison. Current fees are on Betterment's pricing page.

Sources

Written by Kaz, an independent publisher.
Corrections: the contact form.