Will I be taxed on the Later match if I withdraw my money?

You may owe taxes on the match under certain situations.

If you withdraw any contribution before the 4-year holding period is up, Acorns will automatically remove the match amount you received. Since the match will be removed, you won’t owe taxes on the match.

If you withdraw your match after the 4-year holding period is up, owing taxes depends on your IRA type. 

• Traditional IRA: You'll owe taxes on the match because it's considered earnings
• Roth IRA: The match will be tax-free at retirement (age 59 1/2 & account open for at least 5 years)
• SEP IRA: You'll owe taxes on the match because it's considered earnings

Heads up, you may owe taxes if you withdraw from your Acorns Later retirement account retirement account before you reach age 59 1/2 — but it depends on a few factors. Learn more here.

Acorns does not provide tax advice, and this information is not a full presentation of tax regulations that may be applicable to Match Amounts or any Acorns Later retirement account. Please consult a tax advisor for individualized advice.