The 1099-R form is a tax form that's used to report any money withdrawn from a retirement account — like your Later account — to the IRS. Taking money out of a retirement account is known as a "distribution."
It's one of a few different kinds of 1099 forms, which generally report different kinds of income you earned in a year to the IRS (usually for payments that come from other sources than a typical employer).
Who receives a 1099-R form?
If you're an Acorns Later investor and you made a withdrawal from your Later account last year, you'll receive a 1099-R form.
Your Acorns Later account is an IRA (individual retirement account), and it 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 Later account could result in a penalty — generally an additional 10% tax, and there could possibly be income taxes and other penalties, too.
Where is my 1099-R form?
If you qualify for a 1099-R form, we'll email you a 1099-R form that lists those withdrawals by February 1, 2024. You can also check for tax forms under Settings.
Here's the full schedule for the different types of tax forms you may receive from Acorns this tax season, following the deadlines set by the IRS.
Important tax information
Your tax situation is unique, so you may want to talk to a tax professional or visit www.irs.gov to figure out what applies to you and what you may need to report.
Acorns doesn't provide tax advice, but if you have any questions or concerns about your account, please contact us.
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