Getting Started

Welcome to Your 529 Education Savings Benefit Use this step-by-step guide to get started We’re excited you’re here and ready to get set up with a 529! You can enroll in a new 529 plan, select plan-specific investments, connect existing 529 accounts, and automate payroll deductions all within the Betterment app. Use the step-by-step guide below to get started. Setting up a new 529 Get started Log in to your account, and choose: Add new goal. Click on 529 Plan. Answer a few questions about your savings goals. Choose your 529 plan Betterment will display one or more 529 plans you might be interested in based on your location, your beneficiary’s age, and any income tax benefits that may be available to you. You can pick one of those, or review all other options. If you choose a plan that can be integrated within the Betterment experience, you’ll move on to the steps below. Note that integrated 529 accounts and their plans are not managed by Betterment and instead are held and managed by program administrators of each 529 plan. If your selected plan is not eligible to integrate, you can still access and connect it to Betterment manually, and take advantage of Betterment’s other products alongside your education savings account. Select a portfolio Within each plan, there are two types of investment options: Choose a portfolio that’s managed for you by the plan investment manager and automatically adjusts over time. Choose to manage your own portfolio to reflect your time frame and desired risk level. This option gives you more direct control. Enroll in a plan Complete paperwork: Confirm details about yourself and any beneficiaries. All set! Check out your new goal in your Betterment dashboard! Connecting an existing 529 account Get started Log in to your account, and choose: Add new goal. Click on the 529 Goal. Click on Connect an existing 529 (If you choose a plan that can be integrated within the Betterment experience, you’ll move on to the steps below. Note that integrated 529 accounts and their plans are not managed by Betterment and instead are held and managed by program administrators of each 529 plan. If your selected plan is not eligible to integrate, you can still access and connect it to Betterment manually, and take advantage of Betterment’s other products alongside your education savings account.) Tell us your account number. Read and sign our Terms and Conditions. Authorize Betterment to access your account. In the Betterment app, you will now see your 529 plan in your dashboard. Set up contributions Navigate to set up contributions or deposits. You have two ways to contribute toward your 529 account: through payroll deductions or by linking a bank account within Betterment: Payroll deductions (post-tax): These payments are eligible for an employer match, if your employer offers one. Select Payroll deduction to have contributions automatically come out of your paycheck. Choose a 529 account to contribute to. Decide how much money you want to contribute per pay period. Review and approve your contribution rate. Linked bank account: Select Linked bank account Choose a 529 account to contribute to. Decide how much you want to contribute and at what frequency. Review and approve your contribution rate. Dashboard overview Overview tab: View all of your 529 accounts and balances. Note that payments typically take 5-7 days to process. Activity tab: See your Betterment payment activity. Settings tab: See your 529 account details and link your Betterment account directly to your 529 plan account in order to navigate back and forth seamlessly.

How to pick a 401(k) contribution rate Your 401(k) contribution rate - also known as a deferral rate or savings rate - is a key part of a successful retirement strategy. You’ve taken that first step and have set up your Betterment 401(k) account - well done! One important piece to consider next is your contribution rate - how much from each paycheck will go into your account? With your Betterment 401(k), you could use a percentage or a fixed dollar amount, whichever you prefer. Here are a few other things to consider: Were you automatically enrolled? Many employers choose to automatically enroll their employees in the plan with a default contribution rate of 3% – if you're not sure, please check with your employer or take a look in your Retirement goal. Keep in mind, whatever the default contribution rate is, it’s just a starting point. You can (and probably should) increase that contribution rate at any time in your account. At least a decade without a paycheck Most experts recommend contributing 10%–15% of your paycheck to have enough to last you through retirement - which could be 20-30 years considering how long people are living! If you retire at age 65, with a healthy lifestyle and no major risk factors, you could live well into your 80s or 90s. That means you'll want to set yourself up for living off your personal savings and investments for about 20 years! Starting small is better than nothing If 10-15% of your paycheck sounds absurd to you right now - deep breath, think of that as something to aim for. You can start with something smaller, maybe 5 or 6%, and slowly but surely increase your savings rate every year – your birthday? Give yourself a gift and increase it by 1%. Your work anniversary? Cheers to you, bump it up again. And those 1% increases can actually be a big deal. Go for the max Because of its tax benefits, the IRS sets a limit on how much you can put into your 401(k) every year. So you could aim to contribute as much as the IRS allows! For people 50 and over, the limit is higher, which is referred to as “catch-up contributions.” And if you really want to be an over-achiever, you can also contribute to an IRA, an individual retirement account, to save even more. Tax considerations With your Betterment 401(k), you can make contributions into a traditional 401(k) account and/or a Roth 401(k). There are tax benefits to both: Traditional 401(k): Contributions are deducted from your paycheck before taxes are withheld, which can lower your taxable income. Both your contributions and investment earnings are “tax-deferred,” meaning you won’t pay taxes on what you contributed to the account as well as any earnings until you withdraw the money at retirement. In other words, save on taxes now, pay taxes later. Roth 401(k): Contributions are made with after-tax dollars so your withdrawals—both the contributions and earnings—are tax-free once you decide to retire (minimum age, 59½), and as long as you’ve held the Roth account for at least five years. In other words, pay taxes now, no taxes later. Remember that you can use both! Say you want to contribute 10% towards your retirement? You can put 5% into a traditional 401(k) and 5% into the Roth 401(k). This is one way you can balance your tax exposure. If you already have your account set up, log in today to adjust your contribution rate or reassess your traditional and Roth contributions. Haven’t started saving in your Betterment 401(k) yet? Check your email for an access link from Betterment, or get in touch: Send us an email: support@betterment.com Give us a call: (718) 400-6898, Monday through Friday, 9:00am-6:00pm ET

When’s the best time to invest for retirement? Now. Should you start saving for retirement? Unless you are on one of those richest-people-in-the-world lists - then the answer is, most likely, yes. From paying the rent or mortgage, credit card bills, student loans, daily living expenses - there are a lot of things competing for your money’s attention! The idea of saving for retirement can easily be pushed to the backburner for all of those other - completely understandable! - reasons. But we’re here to say - hold the phone. Even a little bit into a 401(k) can make a huge difference for your retirement. Rock and roll When a rock rolls down a hill, it goes faster and faster on its way down. It has something to do with momentum and physics – we’re not scientists here, we’re investment professionals. But the same concept applies to your 401(k) - not because of physics, but because of compounding interest. Compounding interest means that not only are your original dollars growing based on potential stock market gains, but that newly earned money also grows whenever the stock market goes up! See how it works with this calculator tool. Give compounding time to shine If the magic of compounding interest isn’t enough to get you going right away, there is one other factor to consider. If someone starts saving 6% of their paycheck at age 25, they are expected to end up with more money at age 65 than someone who contributes 10% starting at age 40. And here’s the real kicker - the person who’s doing 10% starting at age 40 will put in more of their own dollars, and is still expected to end up with less by the time they reach age 65. How is that possible? The 6% contributions had more time to grow – more time to roll down that hill gathering speed – or in this case – money. If you already have an account, log in today to view your contribution rate and consider giving it a bump – even a 1% increase can make a difference in your retirement years! Haven’t started saving in your Betterment 401(k) yet? Check your email for an access link from Betterment, or get in touch: Send us an email: support@betterment.com Give us a call: (718) 400-6898, Monday through Friday, 9:00am-6:00pm ET

Getting started with your Betterment 401(k) Your employer chose Betterment as its 401(k) provider - so come on in and be invested for your future. Traveling around the world. Taking up a new hobby. Spending more time with family and friends. Whatever your retirement dreams are, a 401(k) can help you make them a reality. And luckily for you, your employer chose Betterment to manage its 401(k) plan. Top 3 perks of a 401(k) Participating in your employer’s 401(k) plan is a good idea for many reasons – here are the top three. With a 401(k), you can: Contribute via convenient, automatic payroll deductions (one less thing to think about!). Save on taxes, whether those savings happen today with a traditional 401(k) or at retirement with a Roth 401(k) (and the cool thing is that you can use both!). Invest more than with other retirement vehicles (individual retirement accounts (IRAs) have lower caps on how much you can put in). All said, saving for retirement with a 401(k) is basically a no-brainer. Without a regular paycheck in retirement, you’re going to rely on your own savings. And we’re not talking about cash-under-the-mattress savings or even safe-in-the-bank savings - but invested savings, which is what you get with a 401(k). (Why is it so critical to invest for long-term goals, rather than simply saving money in the bank? To tackle one word: Inflation.) Top Betterment features Betterment offers several features to help you pursue your retirement goals: Goal based – Your 401(k) will automatically be a “Retirement” goal on the Betterment platform (you could add additional goals for other things if you want). Our goal-based platform looks at your timeline until retirement and the desired amount you want to save, to help you invest in an expert-built portfolio. Low cost – Our approach uses low-cost exchange-traded funds (ETFs) so more of your money stays invested in your account. High tech –Certain portfolio strategies and goal types are automatically rebalanced and adjusted over time, and our tax-smart tools are available to you at no added management fee. Personalized – Betterment helps you work towards your long- and short-term financial goals with personalized advice. It’s easy to get started Betterment will contact you via email to set up your account via a secure link that’s unique to you. If you haven’t received an invitation from us to set up your account, please contact us. Once you’ve set up your account, be sure to set a contribution rate to help you pursue your goals (although starting with anything is far better than nothing!) and you’ll want to initiate a rollover of any old 401(k)s into your new Betterment 401(k). Were you automatically enrolled in your plan? If so, you still need to set up your account with a username and password. If your employer has determined an automatic contribution rate for your organization, know that you can adjust this in your account at any time. Betterment strives to make saving and investing for retirement easy. But we know you still might have questions, so we’re here to help: Explore our 401(k) employee resources Send us an email: support@betterment.com Give us a call: (718) 400-6898, Monday through Friday, 9:00am-6:00pm ET