Updated 2026-03-20
TIAA vs Betterment 401(k) Comparison
Compare TIAA (#9, 7.9/10) and Betterment at Work (#20, 6.7/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | TIAA | Betterment |
|---|---|---|
| Overall Score | 7.9/10 | 6.7/10 |
| Rank | #9 | #20 |
| AUM | $1.3 trillion | $45 billion |
| Participants | 5 million | 400,000 |
| Plan Sponsors | 15,000+ | 1,500+ |
| Founded | 1918 | 2010 |
Ratings Comparison
| Category | TIAA | Betterment |
|---|---|---|
| Fees & Costs | 4.0/5 | 4.0/5 |
| Investment Options | 4.0/5 | 3.2/5 |
| Customer Service | 4.3/5 | 4.0/5 |
| Mobile App | 3.9/5 | 4.4/5 |
Fee Comparison
| Fee Type | TIAA | Betterment |
|---|---|---|
| Admin Fees | Varies by institution | $150/month + $6/employee |
| Expense Ratios | 0.05% - 1.0% | 0.03% - 0.15% |
| Trading Fees | $0 for TIAA funds | $0 |
| Advisory Fees | 0.30% - 1.0% | Included in platform fee |
TIAA Strengths
- Dominant in education sector
- Strong lifetime income/annuity options
- Mission-aligned for nonprofits
- Excellent retirement income planning
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 | TIAA | Betterment |
|---|---|---|
| Rollover Platform | TIAA.org | Betterment App |
| Loans Available | Yes | No |
| Withdrawal Methods | Online via TIAA.org, Phone (800-842-2252), TIAA offices | Online via Betterment app, Email support |
| Distribution Options | Lump sum, Partial withdrawal, Lifetime income annuity, Systematic withdrawals, Rollover to IRA | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose TIAA if you want:
- Educators
- Nonprofits
- Healthcare workers
- Income-focused retirees
Choose Betterment if you want:
- Tech companies
- Startups
- Hands-off investors
- ESG-conscious employers
Our Verdict: TIAA vs Betterment
TIAA wins this comparison with a score of 7.9/10 vs 6.7/10. TIAA excels with dominant in education sector, 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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TIAA vs Betterment: Complete 401(k) Comparison for 2026
Choosing between TIAA and Betterment at Work for your 401(k) is an important decision that affects your retirement savings. TIAA offers education focus while Betterment is known for robo-advisor. In terms of fees, TIAA charges 0.05% - 1.0% expense ratios compared to Betterment's 0.03% - 0.15%. TIAA manages $1.3 trillion in assets and serves 5 million participants, while Betterment has $45 billion AUM and 400,000 participants.
Key Differences: TIAA vs Betterment
When comparing TIAA and Betterment, consider their core strengths: TIAA excels with dominant in education sector, 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. TIAA's customer service rating is 4.3/5 compared to Betterment's 4.0/5. For mobile experience, TIAA scores 3.9/5 while Betterment scores 4.4/5.
Which Provider is Right for You?
Choose TIAA if you prioritize educators. 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 TIAA and Betterment provider pages.
Frequently Asked Questions
TIAA scores higher in our 2026 rankings with 7.9/10. TIAA is best for educators, while Betterment is best for tech companies. The right choice depends on your employer's plan and your priorities.
TIAA charges expense ratios of 0.05% - 1.0% with admin fees of Varies by institution. Betterment charges 0.03% - 0.15% expense ratios with admin fees of $150/month + $6/employee. TIAA's fees rating is 4.0/5 compared to Betterment's 4.0/5.
Yes, you can roll over between TIAA and Betterment. TIAA uses TIAA.org for rollovers, while Betterment uses Betterment App. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
TIAA offers 401(k) loans. Betterment does not offer 401(k) loans.
TIAA scores 4.0/5 for investment options, while Betterment scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. TIAA's investment options include TIAA Funds, CREF Variable Annuities, Target Date Funds. Betterment offers ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios.
For small businesses, consider plan minimums and per-participant costs. TIAA is best for educators, nonprofits, healthcare workers, income-focused retirees. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Compare admin fees: TIAA charges Varies by institution 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