How to Get Money Out of Your Acorns Accounts

Understanding how to access funds from your Acorns accounts is an important financial step. This guide outlines the various withdrawal options and procedures.

Understanding Your Acorns Accounts and Withdrawal Options

Acorns offers different account types, each influencing the withdrawal process. Acorns Invest is a taxable brokerage account where funds are invested in diversified portfolios of Exchange Traded Funds (ETFs). Withdrawing from an Acorns Invest account involves selling these underlying investments, which can have tax implications.

Acorns Later provides Individual Retirement Accounts (IRAs), including Traditional and Roth options, designed for long-term retirement savings. Withdrawals from Acorns Later accounts are subject to specific Internal Revenue Service (IRS) rules regarding age and taxability, often incurring penalties if taken before retirement age. Acorns Spend functions as a checking account, offering a debit card and features like direct deposit. Funds in an Acorns Spend account are readily accessible and typically involve simpler bank transfers for withdrawal. A verified linked bank account is a prerequisite for all fund transfers.

Step-by-Step Withdrawal Process

Initiating a withdrawal from your Acorns account is a straightforward process accessible through both the mobile application and the website. Users first need to log into their Acorns account and navigate to the “Invest” section. From there, select the specific account from which funds are to be withdrawn, such as Acorns Invest or Acorns Later.

Upon selecting the desired account, locate and tap or click the “Withdraw” or “Transfer Out” option. The system will then prompt the user to enter the specific dollar amount they wish to withdraw, with a minimum withdrawal amount typically set at $5.00. After specifying the amount, the user must select the linked bank account where the funds will be deposited. Review all the withdrawal details for accuracy before confirming the request.

Key Considerations for Withdrawals

The time it takes for withdrawn funds to reach a linked bank account varies depending on the Acorns account type. Withdrawals from Acorns Invest and Acorns Later accounts typically take approximately 3 to 6 business days to process. This timeframe includes the necessary sale of investments and a mandatory 2-day settlement period required by federal regulations before funds can be transferred. Transfers from an Acorns Spend checking account are generally quicker, usually completing within 1 to 3 business days. Withdrawal requests submitted on weekends or holidays will not begin processing until the next business day.

Tax implications are a significant consideration, particularly for investment and retirement accounts. For Acorns Invest, any profits realized from selling investments are subject to capital gains tax. Short-term capital gains (investments held for one year or less) are taxed as ordinary income. Long-term gains (investments held for over a year) may receive preferential tax rates (0%, 15%, or 20% depending on income).

For Acorns Later (IRA) accounts, withdrawals made before age 59½ generally incur a 10% IRS penalty in addition to being taxed as ordinary income, unless an exception applies, such as for qualified medical expenses or a first-time home purchase. While contributions to a Roth IRA can typically be withdrawn tax-free and penalty-free at any time, earnings withdrawn before age 59½ or prior to the account being open for five years may face taxes and penalties. Any matching contributions received in an Acorns Later account may be forfeited if withdrawn before a specified four-year holding period. Acorns itself does not charge a direct fee for withdrawals from any of its accounts.