Updated 2026-03-20
Transamerica vs Betterment 401(k) Comparison
Compare Transamerica (#11, 7.5/10) and Betterment at Work (#20, 6.7/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Transamerica | Betterment |
|---|---|---|
| Overall Score | 7.5/10 | 6.7/10 |
| Rank | #11 | #20 |
| AUM | $300 billion | $45 billion |
| Participants | 6 million | 400,000 |
| Plan Sponsors | 35,000+ | 1,500+ |
| Founded | 1904 | 2010 |
Ratings Comparison
| Category | Transamerica | Betterment |
|---|---|---|
| Fees & Costs | 3.6/5 | 4.0/5 |
| Investment Options | 3.7/5 | 3.2/5 |
| Customer Service | 3.8/5 | 4.0/5 |
| Mobile App | 3.5/5 | 4.4/5 |
Fee Comparison
| Fee Type | Transamerica | Betterment |
|---|---|---|
| Admin Fees | $750 - $3,000/year | $150/month + $6/employee |
| Expense Ratios | 0.25% - 1.2% | 0.03% - 0.15% |
| Trading Fees | Plan dependent | $0 |
| Advisory Fees | 0.35% - 0.85% | Included in platform fee |
Transamerica Strengths
- complete financial wellness programs
- Flexible plan design options
- Strong educational resources and tools
- Integrated workplace benefits platform
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 | Transamerica | Betterment |
|---|---|---|
| Rollover Platform | Transamerica.com | Betterment App |
| Loans Available | Yes | No |
| Withdrawal Methods | Online via Transamerica.com, Phone (800-755-5801) | 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 Transamerica if you want:
- Mid-sized companies
- Integrated benefits seekers
- Financial wellness focus
Choose Betterment if you want:
- Tech companies
- Startups
- Hands-off investors
- ESG-conscious employers
Our Verdict: Transamerica vs Betterment
Transamerica wins this comparison with a score of 7.5/10 vs 6.7/10. Transamerica excels with complete financial wellness programs, 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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Transamerica vs Betterment: Complete 401(k) Comparison for 2026
Choosing between Transamerica and Betterment at Work for your 401(k) is an important decision that affects your retirement savings. Transamerica offers workplace benefits while Betterment is known for robo-advisor. In terms of fees, Transamerica charges 0.25% - 1.2% expense ratios compared to Betterment's 0.03% - 0.15%. Transamerica manages $300 billion in assets and serves 6 million participants, while Betterment has $45 billion AUM and 400,000 participants.
Key Differences: Transamerica vs Betterment
When comparing Transamerica and Betterment, consider their core strengths: Transamerica excels with complete financial wellness programs, 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. Transamerica's customer service rating is 3.8/5 compared to Betterment's 4.0/5. For mobile experience, Transamerica scores 3.5/5 while Betterment scores 4.4/5.
Which Provider is Right for You?
Choose Transamerica if you prioritize mid-sized companies. 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 Transamerica and Betterment provider pages.
Frequently Asked Questions
Transamerica scores higher in our 2026 rankings with 7.5/10. Transamerica is best for mid-sized companies, while Betterment is best for tech companies. The right choice depends on your employer's plan and your priorities.
Transamerica charges expense ratios of 0.25% - 1.2% with admin fees of $750 - $3,000/year. Betterment charges 0.03% - 0.15% expense ratios with admin fees of $150/month + $6/employee. Transamerica's fees rating is 3.6/5 compared to Betterment's 4.0/5.
Yes, you can roll over between Transamerica and Betterment. Transamerica uses Transamerica.com for rollovers, while Betterment uses Betterment App. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Transamerica offers 401(k) loans. Betterment does not offer 401(k) loans.
Transamerica scores 3.7/5 for investment options, while Betterment scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. Transamerica's investment options include Mutual Funds, Target Date Funds, Stable Value. Betterment offers ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios.
For small businesses, consider plan minimums and per-participant costs. Transamerica is best for mid-sized companies, integrated benefits seekers, financial wellness focus. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Compare admin fees: Transamerica charges $750 - $3,000/year 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