Q. What is a custodial account?
A custodial account allows a parent (or grandparent, other family member, or friend) to open a savings/investing account for a minor*. Until the minor reaches the “age of majority” (usually 18 or 21 depending on the State), only the adult or ‘Custodian’ who opened the account can manage the funds. Think of the age of…
Q. What are the Stash fees for a custodial account?
For balances of $5,000 or less, your first custodial account will cost $1 per month and additional custodial accounts will cost half as much—$1 every two months. All custodial accounts with balances over $5,000 will cost 0.25% per year of assets. There are no add-on fees or commissions for a custodial account. It’s always free…
Q. Can I open a Stash Invest account for my child?
You can now open a custodial account on Stash for any minor.* A custodial account allows a parent (or grandparent, other family members, or friend) to invest in a minor’s name. The minor receiving the funds is referred to as the ‘beneficiary,’ and the person investing in the minor’s name is referred to as the…
Q. Can I link a custodial account to a different bank account than my Stash Invest and Retire account(s)?
You can only link one bank account to Stash at this time, so the bank account you use for custodial accounts will need to be the same account you use for Invest and/or Retire. To find out more about how to unlink your bank account click here.
Q. How is a custodial account different from a 529 plan or a Coverdell plan?
Custodial accounts have more flexibility than 529 or Coverdell plans with regard to how the funds can be used when withdrawn. The funds from a custodial account can be withdrawn to be used at any time as long as they are being used for the benefit of the minor. Funds being withdrawn from 529 and…
Q. What are restrictions for withdrawing money from a custodial account?
Money deposited into a custodial account immediately becomes the property of the minor. The assets cannot be taken back or given to someone else. However, withdrawals can be made if the money will be used for benefit of the minor for whom the account was opened. Examples of eligible expenses include education and childcare. This…
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