Retirement accounts are not fixed in place. As your financial needs and preferences evolve, so might your choice of investment platform. The idea of transferring your Traditional IRA isn’t just about switching providers—it’s about finding a platform that better matches your investment philosophy and long-term financial goals.

At Carry, we want to make financial decisions feel more manageable, even if you’re handling them outside our platform. This guide breaks down the steps to transfer your Traditional IRA from Charles Schwab to Betterment smoothly and penalty-free. Please note that while we try to provide the most up-to-date information, these processes are subject to change without notice, so be sure to check with your provider before moving forward.

Table of contents

Step 1: Get Your Account Details Ready

Before starting the transfer, gather all necessary information from your existing Charles Schwab Traditional IRA. Having the correct documentation upfront helps prevent delays.

What You’ll Need:

✅ Your Charles Schwab Traditional IRA account number

✅ Personal identification information

✅ Betterment account login credentials

✅ Current Charles Schwab account balance

✅ Social Security Number

✏️ Hypothetical Example: John, who holds a Traditional IRA worth $15,000 at Charles Schwab, prepares his account details before starting the transfer to ensure the process goes smoothly.

Step 2: Choose Your Transfer Method

When moving your Traditional IRA from Charles Schwab to Betterment, you’ll primarily use a direct transfer, which helps preserve the tax-deferred status of your account. This method allows funds to move directly between institutions without you taking possession of the money.

Key considerations:

✅ Avoid taking personal possession of the funds

✅ Specify that this is a direct transfer between Traditional IRAs

✅ Confirm both institutions support this transfer type

📝 Tip: Most direct transfers complete within 3-4 weeks, so plan accordingly.

Step 3: Initiate the Betterment Transfer Process

Once your Betterment IRA is open, you can initiate the transfer through their platform:

✅ Log into your Betterment account

✅ Select the “Rollover” or “Transfer IRA” option

✅ Choose Charles Schwab as your current provider

✅ Complete the online transfer form and print the required documents

✅ Follow all instructions provided by Betterment

✏️ Hypothetical Example: Sarah used Betterment’s online transfer wizard, which automatically generated her personalized transfer paperwork.

Step 4: Prepare What You Might Need

When preparing your transfer documentation, have these items ready:

✅ Government-issued photo identification

✅ Most recent Charles Schwab IRA statement

✅ Completed and signed Betterment transfer form

✅ Notarized signature (if required)

✅ Current mailing address and contact information

Step 5: Understand Transfer Logistics

The transfer process involves several key steps:

  1. Betterment generates your transfer paperwork.
  2. You submit the signed form and required documents to Charles Schwab.
  3. Charles Schwab processes and liquidates the account (if applicable)
  4. Funds are sent to Betterment via direct transfer.
  5. Betterment invests your funds within 1-2 business days, according to your chosen strategy.

📝 Note: Always keep copies of all submitted forms and confirmations for your records.

Step 6: Be Aware of Potential Transfer Fees

While Betterment typically doesn’t charge transfer fees, be aware of potential costs:

  • Charles Schwab may charge a $50 full account transfer fee
  • Partial transfers typically do not incur charges
  • Notary services may have a small cost, if signature verification is required

Step 7: Tax Considerations

When executed correctly, a direct IRA transfer is a non-taxable event. To avoid any penalties or tax reporting errors:

✅ Use a direct transfer

✅ Ensure the receiving account is a Traditional IRA

✅ Retain records of the transfer and related documentation

📝 Tip: Consult a tax professional if you have specific concerns or complex income considerations.

Step 8: Final Verification & Confirmation

After initiating the transfer:

✅ Monitor both Charles Schwab and Betterment accounts for status updates.

✅ Confirm that the full amount was transferred

✅ Ensure your assets are properly allocated in Betterment

✅ Save all confirmations and transaction summaries

📌 If you need any additional guidance, be sure to check out these related articles:

Final Thoughts on Transferring Your Traditional IRA

Transferring a Traditional IRA from Charles Schwab to Betterment is generally straightforward but it requires careful preparation. The key takeaways are to choose a direct rollover method to avoid potential tax complications, carefully complete all necessary transfer forms, and be prepared for the process to take approximately 3-4 weeks. Timing and accuracy are crucial to ensure a smooth transfer and prevent any unintended tax consequences.

📌 Want to dive deeper? Here are some other helpful (and free) resources:

Disclaimer:

The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.

The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.

To access investment advisory services through Carry Advisors, you must be a client of Vibes on an eligible membership plan. For more information about Carry Advisors’ investment advisory services, please see our Form [ADV Part 2A] (https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=916200) brochure and [Form CRS] (https://reports.adviserinfo.sec.gov/crs/crs_323620.pdf) or through the SEC’s website at [www.adviserinfo.sec.gov] (http://www.adviserinfo.sec.gov/).