How to Open an IRA Account on Acorns

If you’re ready to take control of your retirement savings, Acorns offers a user-friendly platform that allows you to open an IRA account quickly and begin investing with ease. In this comprehensive guide, we will walk you through every step of the process to open an IRA account on Acorns, from creating your account to setting up automatic contributions and selecting your investment portfolio. Whether you’re new to investing or simply looking for a convenient way to plan for the future, this tutorial will provide you with everything you need to get started.

What is Acorns?

Acorns is an investment app that simplifies saving and investing. It helps users build wealth through features like automated investing, round-ups from everyday purchases, and goal-based retirement accounts such as IRAs (Individual Retirement Accounts). With tiered subscription plans offering various tools, including retirement planning and even investment accounts for kids, Acorns is a great option for hands-off investors.

Step 1: Create Your Acorns Account

To open an IRA account on Acorns, you’ll first need to create a standard Acorns account. Here’s how:

1. Visit Acorns.com or download the Acorns mobile app.
2. Click “Get Started”.
3. Enter your email address and create a password.
4. Verify your phone number by entering it and confirming the code you receive via SMS.
5. Enter your first name, last name, and date of birth.
6. Add your residential address and click continue.
7. You’ll be prompted to verify your identity using your Social Security Number (SSN).

Note: If you have a Plaid account, Acorns can connect your bank instantly. However, you can also proceed manually if you prefer.

Step 2: Connect Your Bank Account

Acorns offers two ways to connect your bank:

• Instant Connection via Plaid (recommended)
• Manual Setup

Choose your bank (e.g., Bank of America), log in, and allow Acorns to access your account. Select the account you want to fund your Acorns with, and click Continue.

Step 3: Choose Your Subscription Plan

Acorns offers three subscription levels:

• Bronze ($3/month): Includes a basic investment account and an IRA for retirement.
• Silver ($6/month): Adds a checking account and 1% monthly match on retirement contributions.
• Gold ($12/month): Includes everything from the lower tiers plus:
  • 3% monthly match on IRA contributions
  • Investment account for kids
  • Life insurance
  • Will preparation

Select the plan that best matches your financial goals. For demonstration, we’ll proceed with the Bronze plan.

Step 4: Set Up Your Investment Account

Next, answer a few questions about your financial background and investment experience:

• Are you familiar with or work for a broker-dealer?
• Have you been notified by the IRS about backup withholding?
• Are you a 10% shareholder or director in a public company?

Then, provide:

• Your employment status
• Your annual income
• Your net worth
• Your investment goals
• Your financial knowledge level

Don’t feel pressured to choose “expert” if it doesn’t apply to you. Being honest ensures your portfolio suits your needs.

You’ll then be asked if you’re interested in investing for kids. Make your selection and move on.

Step 5: Review Your Suggested Portfolio

Acorns will recommend a portfolio based on your financial profile. For example, if you choose “Investment Growth,” your suggested allocations might be:

• 55% VOO (S&P 500 index fund)
• 30% IUS (International stocks)
• 10% IG (Mid-size U.S. companies)
• 5% IGR (Small U.S. companies)

This portfolio has an estimated average annual return of 6.5%, with potential swings from -2% to +16%. You can review this and proceed.

Step 6: Set Up Round-Ups and Recurring Investments

Acorns encourages regular investing through round-ups:

• When you spend, Acorns rounds up the purchase to the nearest dollar and invests the difference. For example, if you spend $5.29, Acorns rounds up to $6.00 and invests $0.71.

You can set this feature to run automatically or manually. Next, choose the account(s)—bank or credit card—from which Acorns will collect round-ups.

Then, select how much you want to invest weekly, starting from $5 up to $100. This can be changed later.

Step 7: Download the Acorns App

To easily track and manage your investments, download the Acorns app on your mobile device. Once installed, log in to access your dashboard.

How to Open an IRA Account on Acorns

Now that your Acorns investment account is active, let’s move forward and open an IRA account on Acorns. Follow these steps:

1. On the left-hand menu, click “Investing”, then select “Later”.
2. Click Next to begin.
3. Answer the short questionnaire that determines the best IRA for you (Traditional or Roth).
4. Based on your answers, Acorns will recommend an account type. For most people, a Roth IRA is suggested if you expect your income to rise over time.

Step 8: Review Your IRA Portfolio

Acorns will show a recommended retirement portfolio based on your age and retirement timeline. For example:

• 47% VOO (Large U.S. companies)
• 24% IUS (International companies)
• 20% Bonds (Stable, income-generating)
• 9% in Small and Mid-Cap U.S. Stocks

Unfortunately, Acorns does not currently allow you to customize the fund distribution within your IRA. If you prefer more control, this limitation is worth considering. For example, if you want a Traditional IRA instead of a Roth IRA or want a different mix of ETFs, you might feel restricted.

Step 9: Set Your IRA Contribution Amount

On the next screen, enter how much you want to contribute to your IRA. You can:

• Make a one-time contribution
• Set up recurring monthly deposits

You’ll also be informed about your annual IRA contribution limit (e.g., $7,000 for individuals under 50 as of 2025).

After entering the amount, confirm and proceed. Congratulations! You now open an IRA account on Acorns.

Step 10: Monitor and Manage Your Retirement Account

To view your new IRA account:

1. Go to the Investing tab in the main dashboard.
2. You’ll now see two accounts:
   • Your standard investment account
   • Your “Later” account, which is your IRA

Track your performance, adjust contributions, and monitor your retirement progress all in one place.

Why Open an IRA Account on Acorns?

Here are some reasons users choose to open an IRA account on Acorns:

• Simplicity: The entire process is intuitive, beginner-friendly, and mobile-based.
• Automation: Features like round-ups and recurring deposits ensure consistent saving.
• Low Barrier to Entry: Start with as little as $5.
• Smart Portfolios: Professionally designed portfolios tailored to your goals and timeline.
• Matched Contributions: With the Silver or Gold plans, Acorns adds up to 3% on your retirement deposits.

Final Thoughts

Learning how to open an IRA account on Acorns is a smart step toward securing your financial future. The platform is designed with simplicity and automation in mind, making it ideal for new investors or anyone who prefers a hands-off approach. While the inability to customize certain features may frustrate more experienced users, the convenience and automated investing tools make it a solid choice for many.

If you’re ready to start building your retirement savings, take a few minutes today to open an IRA account on Acorns and begin investing in your future.