Moving a robo-advisor account is not taxable; selling is. How to transfer in-kind, what gets sold anyway, and the wash-sale trap.
Disclosure: KatchingStacks is reader-supported. If you open an account through links on this page, we may earn a commission at no extra cost to you. See our affiliate disclosure and editorial policy. Educational only, not financial or tax advice.
Short answer: Moving an account is not itself a taxable event. Selling is. In a taxable account, the bill comes from investments sold along the way, either by you before the move or by the old firm because the new one can’t accept them. In an IRA, a direct transfer between custodians (trustee-to-trustee) isn’t treated as a rollover and isn’t taxed.
Last checked: September 30, 2026. Provider rules change, so confirm with both firms before you start.
| Method | What happens | Tax effect | Main downside |
|---|---|---|---|
| In-kind (ACATS) | Eligible holdings move as-is | No sale, so no gain/loss from the move | Some holdings may not be accepted |
| Cash | Old firm sells everything, sends cash | Taxable account: realizes all gains and losses | You’re out of the market while it settles |
| Partial | Some holdings move, the rest are sold | Only the sold portion is taxed | Easy to miss what got sold |
ACATS is the standard system US brokerages use to move eligible securities between firms. In the usual process, the receiving firm starts the request. Both Betterment and Wealthfront say so on their help pages.
Ask both firms for the list before you start. This one question prevents most surprises.
Betterment’s page says it charges a flat $75 per investing account transferred out, and the receiving firm may charge its own fee. Wealthfront’s page says it charges no fee for in-kind transfers. Both figures are from the firms’ pages as of the date above; confirm the current number before you transfer.
If a position is sold for $1,000 and its cost basis is $800, the realized gain is $200. The IRS says that if you hold an asset more than one year before you sell it, the gain or loss is long-term; one year or less is short-term (IRS Topic 409).
Cost basis for transferred securities normally moves electronically. Betterment says basis information arrives within about 15 days after a transfer. Check that basis and purchase dates arrived intact; don’t assume.
If your old robo sold something at a loss (tax-loss harvesting) and you buy the same or a “substantially identical” security within 30 days before or after that sale, the IRS can disallow the loss. The disallowed amount is added to the basis of the replacement shares, so it’s deferred rather than lost (IRS Pub. 550). Switching mid-harvest is a real way to trip this, because the new firm may buy a similar fund right away.
Whether tax-loss harvesting is worth anything to you depends on your tax situation, so this page doesn’t say either way. This section is about taxable accounts. If you also own related funds in an IRA, ask a tax professional how the rule applies.
Sometimes you’re switching because you want a different portfolio, or a holding won’t transfer. Then a sale may be unavoidable. Work out the gain before you do it. Losses can offset gains.
Transfers can take days to weeks; you may lose provider-specific features; fees and fund expenses at the new firm may be higher or lower than what you pay now; and errors in basis records are possible.
Who this isn’t for: People with large unrealized gains, inherited shares, or complex lots should talk to a tax professional first. This guide can’t judge your situation.
How this guide was made: I haven’t completed a transfer between these providers. This guide is based on the firms’ published help pages and IRS publications linked here, as of September 30, 2026.
Does transferring a brokerage account create a tax bill? Not by itself. Sales do.
Can every investment transfer in-kind? No. Fractional shares and cash are common exceptions.
Should I sell everything first? Usually not until you know what can transfer.
Who starts the transfer? Usually the new firm.
Best Robo-Advisors · Betterment vs Wealthfront · Robo-advisor vs financial advisor