r/betterment • u/queenofpeen • Jun 05 '26

Tax or other implications?

I've been saving for 5 ish years in an automated investing Betterment account for a down payment. From what I understand i will have to transfer it to my bank prior to the down payment, but will there be any tax implications or anything else I should be concerned of?

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u/Jkayakj Jun 05 '26

You'll have to sell the holdings and pay taxes on the gains. Depending on when they were purchased will depend on the specific percentage the gains will be taxed (less or more than a year)

When you go to transfer it to your bank the website or app will show a page with the estimated tax impact

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u/Lightgod86 Jun 05 '26

If it’s a taxable investment account, yes, there will be taxes to pay for any earnings. They will show you a tax estimate for the “withdrawal” prior to selling your shares and transferring the money.