Betterment Now Offers IRA Accounts To Customers

by Hank Coleman

BettermentMany individuals who are saving for the future prefer to do so in an individual retirement account (IRA) because of the tax savings involved. And now, Betterment is offering its customers to do the same thing and allowing them to invest in IRAs. Betterment offers IRA to its customers now.

If you haven’t heard of Betterment or of a Betterment IRA, it is an online brokerage that is trying to simplify the way investing is done by automating the process and making it easy to invest in a diversified portfolio. Recently, Betterment lowered its fees for investors too which has been a great benefit to its customers.

Now, with retirement investing options, the offerings by Betterment just got better! Be sure to check out my complete review of Betterment. I’ve been using their services for almost seven months now and I have really enjoyed the exchange traded funds (ETFs) that Betterment picks for their investors.

Why Betterment Individual Retirement Account?

If you are considering saving for the long term, you should take advantage of an individual retirement account. Betterment offers both traditional and Roth IRAs, and offers all of the same perks as a normal Betterment account.

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If you want to get a tax break now, and don’t mind paying taxes when you retire, you should consider going with a traditional IRA.  If you want to have tax free withdrawals in retirement and want to use after-tax money now, then go with a Roth IRA.

Betterment even offers 401k rollovers into a rollover IRA. So, you can move that 401k retirement plan from your old employer over without any hassles. It is a great option to moving your money especially if you have changed jobs recently.

You may want to consider a partial rollover if you are still with your current employer. Check with your human resources department to see if your plan allows it. Get a $25 Account Bonus when you sign up for Betterment.

The Perks Of Betterment

Betterment is trying to do things different by automating the process, keeping your portfolio diversified automatically, and keeping things simple. Betterment also offers automatic deposits, which makes savings for retirement easier than ever.

For example, the current deposit rules for IRAs are that if you are under 50, the maximum deposit is $5,000 per year. If you are over 50, it jumps to $6,000 with a catch up contribution.

So, if you wanted to take advantage of Betterment’s automatic investing, you could invest $416 per month if you’re under 50, and Betterment will handle the rest.  Once the money was deposited, Betterment would automatically invest it, make sure that your portfolio was diversified, and rebalance as needed.

Quick, simple, and easy…that is what Betterment is trying to do by offering you individual retirement accounts. Get a $25 Account Bonus when you sign up for Betterment.

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About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 589 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


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{ 3 comments… read them below or add one }

Elizabeth @ Simple Finance

I’m actually shopping around for a new IRA, since my broker is charging outrageous fees. I’ll have to check Betterment out! Thanks for the tip 🙂

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SB @ One Cent At A Time

Since long I am contemplating on having a betterment account.

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Jai Catalano

I am pretty happy where I am but it is definitely good for those that are shopping around.

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