Betterment Review

Betterment IRA Visit Site

Overview

Founded in 2008, Betterment is one of the pioneers in robo-advisory investment services. Its mission centers on democratizing access to goal-based investing through low-cost, automated portfolio management. The company has grown into one of the most prominent platforms in the robo-advisor space, managing billions in assets across taxable and retirement accounts.

Betterment’s IRA product suite includes Traditional, Roth, and SEP IRAs, all of which are managed using Betterment’s algorithm-driven investment strategies. With features like auto-rebalancing, dividend reinvestment, tax optimization, and integrated goal planning, Betterment simplifies retirement saving for individuals who prefer a hands-off approach.

What is Betterment?

Betterment’s IRAs are designed to help users save for retirement through tax-advantaged accounts while benefiting from a managed investment strategy. After selecting an IRA type, users are guided through a short questionnaire that gauges risk tolerance, age, income, and retirement goals. Based on this data, Betterment allocates investments across diversified ETFs that span U.S. and international stocks and bonds.

The platform offers flexibility in choosing between account types:

• Traditional IRA: Contributions may be tax-deductible, with taxes applied upon withdrawal.
• Roth IRA: Contributions are made post-tax, but withdrawals are tax-free if qualified.
• SEP IRA: Designed for self-employed individuals and small business owners, offering higher contribution limits.

Betterment also supports rollovers from 401(k)s or other IRA accounts and provides conversion options between Traditional and Roth accounts, enhancing its utility for consolidating retirement savings.

Suitable For?

Betterment’s IRA platform is ideal for:

• First-time investors and retirement savers who want a fully automated solution
• Individuals consolidating old 401(k) or IRA accounts
• Self-employed users seeking a SEP IRA option
• Investors who prefer low-cost, passive ETF investing without having to manage portfolios manually

It may be less suitable for:

• Users who want direct control over stock or bond selections
• Those seeking intensive tax planning or alternative asset classes

Features/Highlights

Product Choices and Terms

Betterment offers three core IRA types:

• Traditional IRA: Ideal for those seeking immediate tax deductions. Contributions and earnings are taxed upon withdrawal. Suitable for people expecting to be in a lower tax bracket in retirement.
• Roth IRA: Contributions are made with after-tax income. Earnings and withdrawals are tax-free if rules are met. This is often more advantageous for those expecting to be in a higher bracket later.
• SEP IRA: Best for freelancers or small business owners, allowing higher annual contributions than Traditional or Roth IRAs.

All IRAs are paired with Betterment’s ETF portfolios, which are automatically rebalanced and optimized for growth based on individual investor profiles. Optional features include access to human financial advisors (via the Premium Plan) and integration with external accounts for comprehensive planning.

How to Get Started with Betterment

Setting up a Betterment IRA is straightforward:

1. Visit Betterment’s website and select the IRA type.
2. Complete a goal-setting questionnaire, which covers risk appetite, age, income, and retirement target.
3. Betterment builds a personalized ETF portfolio.
4. Link a bank account to fund contributions.
5. Optionally roll over existing retirement accounts.

The platform’s intuitive interface guides users through setup in under 10 minutes. Rebalancing, tax features, and retirement tracking are included once funded.

Is There a Betterment App?

Yes. Betterment’s mobile app is available on both iOS and Android. It allows users to:

• Open and manage IRA accounts
• Monitor portfolio performance
• Make contributions or withdrawals
• Access retirement planning tools
• Chat with customer support (for Premium users)

The app is user-friendly, well-rated, and mirrors the full desktop experience.

How Safe Is It?

Betterment uses bank-level encryption and two-factor authentication to protect user data. Account assets are held at Betterment Securities, a member of FINRA and SIPC, which provides up to $500,000 in protection against broker failure (not against market loss). The platform is regulated by the SEC.

Betterment has earned positive reviews for transparency and consistently scores well with third-party reviewers such as NerdWallet and Investopedia.

Help & Support

Support is available via:

• Phone: 718-400-6898 (Mon–Fri, 9 AM–6 PM ET)
• Email/Web Chat: Through the Betterment Help Center
• Help Center: Contains detailed IRA FAQs and rollover guidance

While support hours are limited, Betterment offers thorough documentation and prompt email/chat responses. Premium users gain access to certified financial planners.

Betterment in a Nutshell

Betterment offers a hands-off, tech-driven approach to retirement investing through its IRA options, including Traditional, Roth, and SEP accounts. With no minimum investment required and a low annual advisory fee of 0.25% or $4/month, it's a practical option for cost-conscious savers.

Portfolios are diversified, automatically rebalanced, and tailored to personal retirement goals. Betterment supports rollovers and conversions, making it ideal for those consolidating retirement funds. While it lacks direct stock-picking features and premium human advisor access requires a $100k balance, the platform stands out for its simplicity, tax tools, and strong digital experience.

Whether you're a new investor or looking to streamline retirement savings, Betterment provides an efficient, low-maintenance solution for long-term planning.

Betterment IRA Visit Site

Physical Address

Betterment LLC 8 W 24th St, 6th Floor

New York, NY 10010

FAQs

Can I roll over an old 401(k) into Betterment?

Yes, Betterment supports 401(k) and IRA rollovers with detailed online guidance.

What are the contribution limits?

For 2024, individuals under 50 can contribute up to $7,000. Those 50+ can contribute $8,000.

Does Betterment offer human advisors?

Only with the Premium plan, which requires a $100,000 account minimum.

Methodology

This review was created with information from:

• Betterment's official website
• Betterment Help Center and product pages
• Independent reviews from NerdWallet, Investopedia, and others
• Customer service responses and public disclosures

Disclaimer

AI was used in the creation of this content, along with human validation and proofreading.