Updated 2026-03-20
Merrill vs Betterment 401(k) Comparison
Compare Merrill Lynch (#8, 8.0/10) and Betterment at Work (#20, 6.7/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Merrill | Betterment |
|---|---|---|
| Overall Score | 8.0/10 | 6.7/10 |
| Rank | #8 | #20 |
| AUM | $3.0 trillion | $45 billion |
| Participants | 5 million | 400,000 |
| Plan Sponsors | 2,500+ | 1,500+ |
| Founded | 1914 | 2010 |
Ratings Comparison
| Category | Merrill | Betterment |
|---|---|---|
| Fees & Costs | 3.3/5 | 4.0/5 |
| Investment Options | 4.5/5 | 3.2/5 |
| Customer Service | 4.1/5 | 4.0/5 |
| Mobile App | 4.2/5 | 4.4/5 |
Fee Comparison
| Fee Type | Merrill | Betterment |
|---|---|---|
| Admin Fees | Varies by plan size | $150/month + $6/employee |
| Expense Ratios | 0.03% - 1.5% | 0.03% - 0.15% |
| Trading Fees | $0 - $6.95 | $0 |
| Advisory Fees | 0.45% - 1.5% | Included in platform fee |
Merrill Strengths
- Bank of America Preferred Rewards benefits
- Strong advisory and guidance services
- complete financial planning
- Wide investment selection
Betterment Strengths
- Fully automated portfolio management
- Tax-loss harvesting and tax-smart strategies
- Clean, modern user interface
- Low-cost ETF portfolios
Rollover, Loans & Withdrawals
| Feature | Merrill | Betterment |
|---|---|---|
| Rollover Platform | Benefits OnLine | Betterment App |
| Loans Available | Yes | No |
| Withdrawal Methods | Online via Benefits OnLine, Phone (888-968-4015), Bank of America branches | Online via Betterment app, Email support |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Merrill if you want:
- BofA customers
- Advice seekers
- Large employers
- Full-service needs
Choose Betterment if you want:
- Tech companies
- Startups
- Hands-off investors
- ESG-conscious employers
Our Verdict: Merrill vs Betterment
Merrill Lynch wins this comparison with a score of 8.0/10 vs 6.7/10. Merrill excels with bank of america preferred rewards benefits, making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Merrill vs Betterment: Complete 401(k) Comparison for 2026
Choosing between Merrill Lynch and Betterment at Work for your 401(k) is an important decision that affects your retirement savings. Merrill offers bofa integration while Betterment is known for robo-advisor. In terms of fees, Merrill charges 0.03% - 1.5% expense ratios compared to Betterment's 0.03% - 0.15%. Merrill manages $3.0 trillion in assets and serves 5 million participants, while Betterment has $45 billion AUM and 400,000 participants.
Key Differences: Merrill vs Betterment
When comparing Merrill and Betterment, consider their core strengths: Merrill excels with bank of america preferred rewards benefits, while Betterment stands out for fully automated portfolio management. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Merrill's customer service rating is 4.1/5 compared to Betterment's 4.0/5. For mobile experience, Merrill scores 4.2/5 while Betterment scores 4.4/5.
Which Provider is Right for You?
Choose Merrill if you prioritize bofa customers. Choose Betterment if you're looking for tech companies. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Merrill and Betterment provider pages.
Frequently Asked Questions
Merrill Lynch scores higher in our 2026 rankings with 8.0/10. Merrill is best for bofa customers, while Betterment is best for tech companies. The right choice depends on your employer's plan and your priorities.
Merrill charges expense ratios of 0.03% - 1.5% with admin fees of Varies by plan size. Betterment charges 0.03% - 0.15% expense ratios with admin fees of $150/month + $6/employee. Merrill's fees rating is 3.3/5 compared to Betterment's 4.0/5.
Yes, you can roll over between Merrill and Betterment. Merrill uses Benefits OnLine for rollovers, while Betterment uses Betterment App. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Merrill offers 401(k) loans. Betterment does not offer 401(k) loans.
Merrill scores 4.5/5 for investment options, while Betterment scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. Merrill's investment options include Mutual Funds, ETFs, Stocks. Betterment offers ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios.
For small businesses, consider plan minimums and per-participant costs. Merrill is best for bofa customers, advice seekers, large employers, full-service needs. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Compare admin fees: Merrill charges Varies by plan size vs Betterment's $150/month + $6/employee.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-20