Why are the investing and retirement products being discontinued?
We have made the decision to retire our investing and retirement products to allow us to focus on innovating our core Savings product and to bring budgeting functionality (such as the ability to set up recurring goals) into a more streamlined Savings experience. Retiring these products means we’ll be able to make our signature Savings product (now called “Set & Save”) even better. We hope you’ll stay with us and continue saving for the things that matter most to you.
Below please find your options for closing, transferring or rolling over your account(s). There are important tax considerations to be aware of. If you have specific questions regarding how this might impact your tax situation, please consult your tax advisor.
What are the options for my Investing account?
Transfer the funds to another firm
Please note that after February 20th, 2024, we are no longer able to accept requests to transfer Investing funds to another financial institution's investment account.
However, you can still perform an indirect rollover (within 60 days of receiving funds), and those instructions are detailed further below.
If you have questions or concerns, please email help@oportun.com and we’ll be happy to assist.
Close account
You can choose to close the account and receive the funds via ACH to the bank account on file for Savings members. Once you request the closure it can take 5-7 business days for the funds to be sent to your bank.
There are full instructions here on how to close the account.
Tax Considerations for your Investing account
Investment gains and dividends or distributions in your investing account may be subject to taxes. You can see more information regarding this here. You can withdraw funds from your investing account at any time without tax penalty.
What are the options for my Retirement account?
Direct rollover of funds to another firm
Please note that after February 20th, 2024, we are no longer able to accept rollover forms or requests.
However, you can still perform an indirect rollover (within 60 days of receiving funds), and those instructions are detailed further below.
If you have questions or concerns, please email help@oportun.com and we’ll be happy to assist.
Indirect rollover of funds to another firm
An indirect rollover can be done after you receive the funds. Funds received will be sent via ACH to the bank account on file for Savings members or to the Spending account for Banking members. Once you request the closure it can take 5-7 business days for the funds to be sent to your bank.
Per IRS rules you have 60 days once you receive the funds to deposit them to another IRA account. Please note that you can only perform an indirect rollover once every 12 months, so if you have done one of these in the last 12 months you cannot do this again.
If this is the option you choose, once you receive the funds you will need to contact the firm you want to deposit them to for instructions on completing the 60 day indirect rollover of the funds.
You should make sure to handle this correctly; if not done properly there can be substantial tax costs. You should also consult your tax advisor before deciding what to do. You can read more about this option here: IRS 60 day rollover
Close account
You can choose to close the account and receive the funds via ACH to the bank account on file for Savings members. Once you request the closure it can take 5-7 business days for the funds to be sent to your bank.
There are full instructions here on how to close the account.
Per IRS rules you have 60 days once you receive the funds to deposit them to another IRA account to avoid taxes and penalties.
Tax considerations for your Retirement account
Money saved towards your retirement account that hasn’t been invested yet into your retirement account can be withdrawn back to your checking account without any tax penalty.
Invested funds in your Retirement IRA can still be withdrawn, but they may be subject to early withdrawal penalties from the IRS if you’re withdrawing from your IRA before you turn 59 and 1/2 years old. More information from the IRS here.
If you have a Traditional IRA, your deductible contributions and earnings (including dividends, interest, and capital gains) will be taxed as ordinary income. The IRS typically applies a 10% penalty on early withdrawals from a Traditional IRA, and a state tax penalty may also apply.
If you have a Roth IRA, you can withdraw the contributions (i.e. - the cash you deposited into your retirement account) you made to your Roth IRA anytime, tax and penalty-free. However, you may have to pay taxes and penalties if you withdraw earnings or investment gains from your Roth IRA.
Invested funds in your Retirement IRA can still be withdrawn, but they may be subject to early withdrawal penalties from the IRS if you’re withdrawing from your IRA before you turn 59 and 1/2 years old. More information from the IRS here.
If you have a Traditional IRA, your deductible contributions and earnings (including dividends, interest, and capital gains) will be taxed as ordinary income. The IRS typically applies a 10% penalty on early withdrawals from a Traditional IRA, and a state tax penalty may also apply.
If you have a Roth IRA, you can withdraw the contributions (i.e. - the cash you deposited into your retirement account) you made to your Roth IRA anytime, tax and penalty-free. However, you may have to pay taxes and penalties if you withdraw earnings or investment gains from your Roth IRA.