Transfer T-IRA from Betterment to Vanguard

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ff4930
Posts: 113
Joined: Fri Dec 30, 2016 3:33 pm

Transfer T-IRA from Betterment to Vanguard

Post by ff4930 » Fri Jan 06, 2017 7:19 pm

Hi,

After reading up a lot and learning from this community, I've decided to move my T-IRA from Bettrment into Vanguard for more flexibility in choosing funds and also to save on some fees. Have anyone who have gone through this process can guide me on what steps on needed to take? I figure I check here before emailing/live chatting with a rep on Betterment (can't imagine them too happy to hear I am leaving). Funny enough, their FAQ doesn't cover how to leave Betterment :D
I've searched a bit and couldn't find any topics of someone going through the process in detail.

Couple key questions:

1 - Currently my T-IRA is invested in 7-8 different ETF's, I want to change to mutual funds in Vanguard. Do I have to sell all my ETF's and then transfer over? Will I trigger any taxable event? I hope not, since I'm not withdrawing any money, just doing a direct transfer.

2 - There is 2 sides to the transfer: 1 on Betterment to cash out and 1 on Vanguard to initiate transfer. Which side do I do this first or do them both simultaneously?

Thanks for all your help so far!

Edit:
What you know, there is a FAQ item for transferring account out of Betterment - https://support.betterment.com/customer ... ?b_id=9042

Seems like I should start with Vanguard to initiate the transfer. If there is any helpful advice to this topic, please let me know!

Edit2:
Ugh, Just initiated a transfer online from Vanguard and it seems I need to get a Medallion signature. Sounds like a lot of trouble...Anyone have any experience with this?

ff4930
Posts: 113
Joined: Fri Dec 30, 2016 3:33 pm

Re: Transfer T-IRA from Betterment to Vanguard

Post by ff4930 » Fri Jan 06, 2017 8:47 pm

Just adding to this topic for others in future for reference.

I checked Betterment policy does not require Medallion Signature for accounts under $25,000. I called Vanguard and explain that to them and they told me I do not need to fill it out if I know Betterment does not require the Medallion Signature. I triple confirmed it with them that even if I do not have the Medallion Signature, Vanguard will still initiate the process.

Another note is that if I want to liquidate my funds, I have to call Betterment to liquidate it first otherwise Vanguard will just do a transfer in Kind.

nwffdiver
Posts: 56
Joined: Mon Oct 01, 2012 9:26 pm

Re: Transfer T-IRA from Betterment to Vanguard

Post by nwffdiver » Fri Jan 06, 2017 9:22 pm

I had a small taxable account with them. When I wanted to close it, I had to call them. You're right there is nothing on the site about closing an account. I know because they put you in several etf's at once, you will want to close it before transferring. I closed mine and put it all into VSTAX.


Good luck and be safe on shift

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