Help Center

How can using a flexible portfolio affect my taxes?

Betterment Editors — Wed, 12 Aug 2026 04:00:00 GMT

If you change an existing taxable goal’s portfolio to a Flexible Portfolio you may see an impact on your taxes. Betterment’s Tax Impact Preview will display the estimated impact.

Stocks and Bonds Investing Transactions

Betterment Editors — Wed, 12 Aug 2026 04:00:00 GMT

Any time there is a transaction in your Betterment account (like a deposit, withdrawal, or change in your allocation), we buy and sell shares of stocks and bonds on your behalf in the proper amounts. Betterment takes care of the trading for you. We also trade in order to rebalance your account, change investment options, or otherwise further the investment objectives that you specify through your account.

Employer Contributions FAQs

Betterment Editors — Mon, 10 Aug 2026 04:00:00 GMT

Does my company offer an employer contribution or employer match in our 401(k) plan?

What am I getting for Betterment’s investing fee?

Betterment Editors — Mon, 10 Aug 2026 04:00:00 GMT

Betterment’s investing fee provides value by offering a number of features under the hood that are designed to simplify your life as an investor and help maximize your returns. These features are available at no additional cost. Please be aware the following information only pertains to investment accounts.

What happens when I deposit money into an investment account at Betterment?

Betterment Editors — Mon, 10 Aug 2026 04:00:00 GMT

When you deposit money with Betterment, your money is transferred to Betterment Securities (a FINRA member broker-dealer) with instructions to buy ETFs based on your desired asset allocation between stocks and bonds (Betterment’s two investment baskets). You own shares in the stock and bond ETFs that Betterment recommends for these two baskets and Betterment manages buying and selling them for you.

How and when will my portfolio be rebalanced?

Betterment Editors — Fri, 07 Aug 2026 04:00:00 GMT

Why Rebalancing Is Necessary

How will I be notified when there are automatic adjustments to my allocation?

Betterment Editors — Fri, 07 Aug 2026 04:00:00 GMT

Any automatic adjustments to your target allocation will be recorded and stored within "Activity" under “Transactions." These adjustments will be noted as an “Automatic Allocation Change.”

Will using a flexible portfolio impact Betterment's tax features?

Betterment Editors — Tue, 04 Aug 2026 18:01:53 GMT

Flexible Portfolios are compatible with our tax-smart features, such as Tax Loss Harvesting, Tax Coordination, and Tax Impact Preview, but altering or removing individual asset classes may impact the effectiveness of these strategies relative to their effectiveness when used with the Betterment Portfolio Strategy.

What Refer a Friend rewards are available?

Betterment Editors — Tue, 04 Aug 2026 16:11:40 GMT

A qualifying referral can earn up to two rewards:

What happens if a referred friend withdraws money after receiving the investing bonus?

Betterment Editors — Tue, 04 Aug 2026 16:10:21 GMT

The $150 investing bonus for referred friends is subject to a 3-year holding period. If, during that period, withdrawals or transfers cause the eligible investing account balance to fall below $250, an Early Removal Fee may apply. The fee is capped at 80% of the amount withdrawn or transferred in a single transaction, and total Early Removal Fees cannot exceed $150 during the holding period.