Acorns Early 1% Match on Kid Custodial Accounts / Acorns Later 3% Match on IRA Contributions

Acorns, known for their “Round-Ups” on purchases that encourage recurring small savings of spare change and beyond, also has a match program for IRA contributions. They also just added a new match program for UTMA/UGMA custodial accounts for kids.

Acorns Early is their UTMA/UGMA custodial account for minors, and they will give a 1% match on contributions for Acorns Gold subscribers. These UTMA/UGMA custodial accounts have a few different wrinkles. They are a flexible brokerage account, not like 529 plans where you have to pick from a menu. They can be spent more flexibly as well, not just for qualified educational expenses. A certain amount of income is tax-free each year. However, money in a custodial account is the property of the minor and they assume full control of the account when they become of age.

For 2024, the gift tax exclusion if $18,000 per person ($36,000 from a couple), so the 1% match could be worth up to $180/$360 per kid per year (you can give more, but this is without potentially triggering a gift tax). Friends and family are allowed to contribute as well.

Acorns Later is their IRA account, and they give a 3% match on contributions for Acorns Gold subscribers. Per the 2024 contribution limits, $7,000 x 3% = $210 and $8,000 x 3% = $240 (Age 50+). There is a 4-year hold period.

Acorns Gold costs $12 a month (first month free) and is their highest premium tier with other various perks. So you’d have to balance it all out for your situation.