Is Acorns Later an IRA?

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Yes, Acorns Later is our IRA (or "Individual Retirement Account"). An IRA may provide you with tax benefits while you invest for your retirement.

We offer 3 different types of IRA plans: traditional, Roth, and SEP. 

Each of these IRA plans has different rules. There are conditions you need to meet to be eligible, limits on how much you can contribute, and rules about how much you can earn. Plus, if you take money out too early, you might have to pay penalties from the IRS.

We can help by recommending an IRA plan for you and your long-term goals. Our Later portfolios are age-based, which means we'll adjust your investments on your timeline to retirement.

Here are the basics for our Later IRA plans:

Traditional IRA: A traditional IRA plan lets your money grow tax-free until you start making withdrawals at retirement age (59 ½ according to the IRS). Depending on your current income, you may be able to deduct your contributions to a traditional IRA from your tax return. 

  • Roth IRA: With a Roth IRA, you put in money that's already been taxed by the IRS. But at retirement age, you can take out that money without having to pay taxes on your investments and earnings. 
  • That means your money will have had the chance to grow in the market for as long as you've had it invested — and you won't be taxed on those earnings!
  • SEP IRA: A SEP IRA stands for "Simplified Employee Pension IRA". It’s for small-business owners and anyone who's self-employed. A SEP IRA can be a great option if you don't have a 401(k) through work

Check out Learn in your Acorns app to find out more about Acorns Later and how it works.

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