Betterment makes rollovers simple and efficient—minimizing your time and keeping costs low so we can maximize your money’s growth.

KEY TAKEAWAYS

It only takes five minutes to set up a rollover account with Betterment.

Remember that a traditional, tax-deferred 401(k) should be rolled over to a traditional IRA (or else you will have to pay taxes on it).

Rolling over a 401(k) shouldn’t be a big headache, but for many people it is—and sheer dread (or lack of information) can lead you to avoid rollovers altogether.

In fact, when you want to roll over a 401(k), your company may put up roadblocks, according to a 2013 Government Accounting Office (GAO) report. Often, this study found, the company won’t explain all the possible alternatives; they might mislead you about account charges; or they might encourage you to rollover the 401(k) to an IRA within the same institution, whether or not that’s the best choice.

We have a better idea. Betterment makes rollovers simple and efficient—minimizing your time spent and keeping costs low, which is essential to maximizing your moneys growth.

How to Roll Over a 401(k)

Setting up a rollover IRA is free, and it takes five minutes or less with Betterment. If you dont already have one, create a Betterment account with an IRA goal to receive the funds (click “Rollover” at the top right-hand side of your Summary page).

We’ll send you a personalized email explaining how to set up the transfer. Then, contact your 401(k) provider and let them know that you’re rolling over the funds. Your provider will move the funds via check to us (or they may send a check to you directly and you would forward it to Betterment). The same applies for any other employer-sponsored plan.

Apples to Apples

Remember that a traditional, tax-deferred 401(k) should be rolled over to a traditional IRA (or else you will have to pay taxes on it). If you happen to have a Roth 401(k), you can roll over those funds to a Roth IRA. If you’re not sure what type of retirement account you have. and which rollover account to set up, our guide makes it really easy.

If you try to roll over a 401(k) to a Roth IRA, that’s considered a Roth conversion and you’d likely owe taxes on that money.

Note that Betterment is not a tax advisor, and nothing in this article constitutes tax advice. If you have tax questions, consult a tax professional.

(If you’re wondering about how to roll over an IRA. you can do that with Betterment, as well.)

Ask About Fees

It’s free to set up a Betterment rollover IRA. but your 401(k) provider may charge you for closing the account. If you’re doing a partial rollover of your 401(k) funds, ask whether you will incur any fees.

Once your Betterment rollover account is set up, remember that you enjoy some of the lowest investing fees in the industry.

Whatever you do, don’t let minor hurdles with your provider or former company prevent you from making the smart choice for your money. Keep it growing, with Betterment.

More From Betterment:

New to Betterment?  Betterment is the largest, fastest-growing automated investing service, helping people to better manage, protect, and grow their wealth through smarter technology. With more than 50,000 customers and $1 billion in assets under management, the service offers a globally diversified portfolio of ETFs, designed to help provide you with the best possible expected returns for retirement planning, building wealth, and other savings goals. Betterment is a CNBC Disruptor 50 and Webby award winner and has been featured in the New York Times, Forbes, and the Wall Street Journal. Betterment helps people to achieve a smarter financial future with minimal effort and at a fraction of the cost of traditional financial services. Learn more here .

Determination of largest automated investment service reflects Betterment LLC’s distinction of having the most accounts, based on Betterment’s review of account numbers self-reported in the SEC’s Form ADV, across Betterment’s survey of RIA automated investment services. Determination of fastest-growing automated investment service reflects Betterment LLC’s distinction of obtaining the largest number of new accounts since January 1, 2014, based on Betterment’s review of account numbers self-reported in the SEC’s Form ADV, across Betterment’s survey of automated investing services.

This article was published on April 4, 2014