How does Later Match work?

Article author
Alexander G.
  • Updated

You might have heard of a 401(k) match before — Later Match is similar. A 401(k) match is when an employer puts money in an employee's 401(k) retirement account based on what the employee contributes themself. With Later Match, Acorns will be the one putting money into your IRA!

For every new contribution you make to your Acorns Later retirement account, up to the annual contribution limit, Acorns will match a percentage of your contribution and automatically invest it into your Acorns Later retirement account.

How much will be matched by Acorns depends on your subscription tier.

Match Rate Breakdown:

Subscription Tier Match Rate On New Contributions

$6 Personal Plus

(For more info on the recent price change for the $6 Personal Plus tier, check out our FAQ for more info)

1%

$9 Premium 

(existing customers before 7/1/2024)

3%

$12 Premium

(customers who upgrade on or after 7/1/2024 - check out our FAQ for more info)

3%

 

Here's how that works. Say you contribute $100 to your Acorns Later retirement account: 

  • If you're in the $6 Personal Plus tier, Acorns will match and invest 1% of $100 — or $1 — automatically in your Acorns Later retirement account. What this means is that after your contribution and Acorns’ match, you'll have $101 invested in your Later IRA.
  • If you're in the $12 Premium tier, Acorns will match and invest 3% of $100 — or $3 —  automatically in your Acorns Later retirement account. What this means is that after your contribution and Acorns’ match, you'll have $103 invested in your Acorns Later retirement account.

Please note, if you have a SEP IRA, we'll use the traditional and Roth IRA contribution and match limits outlined above.

 

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