Can I withdraw IRA matches from my Acorns Later retirement account?

Thanks for asking about Later Match. We require that you keep all funds in your Acorns Later retirement account for 4 years of a match deposit to retain the Match. 

This is for a couple reasons:

1. We want you to stick to your long-term retirement goals
2. There are potential penalties enforced by the IRS for withdrawing funds from an IRA

If you make a withdrawal from your IRA before the end of the 4-year holding period, Acorns will remove certain match amounts from your account balance. We will calculate the deducted amount during the withdrawal process. 

Here's how this works. Say you contributed $100 and we matched 1%, or $1, on July 31st, 2024. This means any deposit made must remain in your account until July 31st, 2028, to avoid the match being removed.

• If you withdraw $50 before the 4-year holding period is up, we'll remove 1% of $50, or $0.50.
• If you withdraw $100 before the 4-year holding period is up, we'll remove 1% of $100, or $1.
• If you withdraw more than $100 before the 4-year holding period is up, we’ll remove only up to the match amount, which is $1 in this example.

This deduction applies to the removal of any funds within the 4-year holding period, except in the case of a deceased customer. It does not apply as a result of a change in investment value or market fluctuation.

To learn more about the value of long-term investing, check out this article.

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