How to Close Betterment Account (2026 Guide) — Transfer Out Without Selling

Updated 2026-02-15 · 5 min read

Betterment charges 0.25% annually on your portfolio — the same as Wealthfront. On a $100,000 portfolio, that's $250/year. On $500,000 it's $1,250/year. When Schwab Intelligent Portfolios offers the same automated investing for $0 advisory fee, Betterment's value proposition has evaporated. Here's how to leave without a tax hit.

Option 1: ACATS Transfer (Recommended)

1. Open a new brokerage account (Fidelity, Schwab, or Vanguard)
2. From the new brokerage, initiate an ACATS transfer
3. Provide your Betterment account number (Settings → Account)
4. Select full account transfer
5. Wait 5-7 business days for the transfer to complete
6. Betterment account closes automatically once empty

Option 2: Close Account Directly

If you want to cash out (understand the tax implications):

1. Log in to Betterment
2. Go to Settings → Close Account
3. Betterment will sell all positions at market value
4. Cash will be transferred to your linked bank account (3-5 business days)
5. You'll receive a 1099 tax form for any capital gains

Betterment Fee Calculator

Special: IRA and 401(k) Rollovers

If you have a Betterment IRA, you can transfer it to another IRA via a trustee-to-trustee transfer — this is NOT a taxable event. Don't withdraw the money yourself (that's a distribution and triggers taxes + potential penalties if under 59½).

Free Alternatives to Betterment