How do I withdraw my funds from Acorns Later?

How to withdraw your Acorns Later funds

What happens to my money when I make a withdrawal request?

Important tax information

Your Acorns Later account is an IRA (individual retirement account). IRA plans can come with some big potential tax benefits — like being able to defer paying taxes until you're ready for your retirement and you meet certain IRS requirements.

But on the flip side, that means early withdrawals or transfers could have tax implications for some people, with only a few exceptions. Withdrawing funds early from your Acorns Later account could result in a penalty (generally an additional 10% tax, and possibly income taxes and other penalties). You can learn more from the IRS website. 

How to withdraw your Acorns Later funds

First, make sure you have a verified checking account linked to your Acorns account so we can transfer your money. Here's how to see your linked accounts. 

Then, you can make a withdrawal request from your Acorns app or from acorns.com. 

1. Log in to your Acorns account
2. Tap or click "Later"
3. Tap or click "Withdrawal"
4. After reviewing the facts about withdrawals, tap or click "Next"
5. Select the reason for your withdrawal and tap or click "Next"
6. Enter the amount you're withdrawing and tap or click "Next"
7. Under the dollar amount, there is an option to select the bank account you'd like your funds to be transferred to. Select the desired account.
8. Review your requested withdrawal and tap or click "Withdraw"

Please note that a withdrawal doesn't close your account. Here's how to close your Later account.

What happens to my money when I make a withdrawal request?

When you make a withdrawal request from your Later account, Acorns will sell your shares. It can take 3-6 business days for withdrawals to be fully reflected in your bank account.

If you make a request to sell your shares before 11am PT on a day the stock market is open, the request — also known as a "sell order" — is usually processed the same day. If your request was made after 11am PT on a market day or or on a day the market is closed, like the weekend, Acorns will sell your shares the following market day. 

Then, we're required by federal regulations to include a mandatory 2-day settlement period before we can start processing your request.

Withdrawing IRA matches from my Later Account

We require that you keep all funds in yourAcorns Later retirement account for 4 years of a match deposit. This is because we want you to stick to your long-term retirement goals! In addition, this 4-year holding period helps protect Acorns from losing money. 

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 user. It does not apply as a result of a change in investment value or market fluctuation.

For more information, check out our FAQ: Can I withdraw IRA matches from my Acorns Later retirement account?

Important tax information

If you make a withdrawal or choose to close your account, you may receive important tax forms from Acorns that you'll need for filing your taxes. We'll email you more information when it's close to tax time, or you can check for tax forms under Settings. 

Even if you’ve closed your Acorns account, you can still access your tax forms. Using your computer or a mobile browser, please login here and select “Tax Reports” from the “Documents and Statements” dropdown menu. 

Your tax situation is unique, so please consult a tax advisor or visit www.irs.gov with any questions before making a withdrawal or removing funds. Acorns doesn't provide tax advice, but if you have any questions or concerns about your account, please contact us.