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Business & farm
Yes, if you withdraw pre-tax investments, you will pay tax on the amount withdrawn. You should receive a 1099 form to report the distribution.
However, if this is a retirement account, and you are under retirement age, you may also pay a penalty in addition to the tax, unless you meet one of the Hardship Withdrawals exceptions.
Not knowing anything about your pre-tax contributions, or what type of account you have, and not being financial advisors, we can't advise you for or against a withdrawal.
You should probably discuss this with someone at Acorns.
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‎January 17, 2025
2:32 PM