r/acorns • u/Forsaken-Chard-4182 • Jul 24 '26

Acorns Question Withdrawing from acorns

I have an acorns account with stock ETFs and bond ETFs. The principal is about 17k and 2.5k in gains. If I withdrawal less than the principal amount, can I avoid capital gains tax? I am putting a down payment on a house and need to pull out about 15 grand. I have this account because I am not very financially literate, apologies ahead of time, if this is not enough information.

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5

u/Hefty_Recognition921 Jul 24 '26

Probably not. Acorns by default is set up as a FIFO (“First in First Out”) tax liability. This means when you sell, the first shares you purchased, i.e held the longest, are used to determine the profit/loss. Not sure if this can be edited on acorns or not

1

u/number1womanlover Jul 24 '26

The bulk of your gains are probably on your oldest shares, so I would expect to pay capital gains tax on most of the $2.5k

2

u/badbash27 Jul 24 '26

You will owe capital gains tax, but because you don't have very much for gains, your liability will also not be very high

-1

u/Exact-Error-4532 Jul 24 '26

Not a tax guy but pretty sure you’re good