Saving Investing for a Child custodial IRA youth 529 ABLE accounts
Saving & Investing for a Child custodial, IRA, youth, 529 & ABLE accounts Fidelity Please enter a valid email address Please enter a valid email address Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: " Your email has been sent.
Save smartly for a child's education, with tax-deferred growth and federal income tax-free withdrawals for education expenses that qualify.
Save on behalf of a child—or give a financial gift—with no contribution limit.
Teens ages 13 to 17 can learn to spend, save, and invest in this brokerage account―with a free debit card and no subscription fees.1
Invest for your child's future retirement, with tax-deferred growth and potential tax-free withdrawals.
Save and pay for qualified disability expenses, including federal income tax-free withdrawals for expenses that qualify, without potentially impacting benefits like Supplemental Security Income (SSI).
Annual maximum contribution of $6,000 per child, per year for 2021 and 2022. Investment options Our full range of investments, including stocks, options, mutual funds, bonds, CDs, and fractional shares Withdrawals No federal income tax will be owed on withdrawals of contributions, which can be taken at any time. Earnings can be withdrawn tax-free once the account has been opened for 5 years and one of the following conditions is met: child reaches age 59½, death, disability, or qualified first-time home purchase.
Start teaching kids about money early with our age-appropriate lessons.
Learn ways to explore college investment options and potential tax advantages.
Learn the ins and outs of the Roth IRA for Kids. Questions?
800-343-3548 529 assets may have a relatively small effect on federal financial aid eligibility because they are considered assets of the parent in the Expected Family Contribution (EFC). Conversely, accounts that are considered assets of the child, such as an UGMA/UTMA account, tend to have a greater effect on federal financial aid eligibility in the EFC calculation. A 529 account owned by a grandparent or another person who is not the parent of the beneficiary could have more of an effect on financial aid. Generally, retirement accounts do not impact financial aid, unless there is a distribution which counts as income. Consult with a tax advisor on your specific situation. 1. Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See for further details. 2. Gift tax exclusion limits apply to gifts. Consult with a tax advisor. An accelerated gift transfer to a 529 plan (for a given beneficiary) of $80,000 (or $160,000 combined for spouses who gift split) will not result in federal transfer tax or use of any portion of the applicable federal transfer tax exemption and/or credit amounts if no further annual exclusion gifts and/or generation-skipping transfers to the same beneficiary are made over the five-year period and if the transfer is reported as a series of five equal annual transfers on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. If the donor dies within the five-year period, a portion of the transferred amount will be included in the donor's estate for estate tax purposes. 3. The PSA must be the designated beneficiary's parent, legal guardian, or agent acting under Power of Attorney (POA). The PSA has full control and authority over the account and must use the account for the benefit of the designated beneficiary. If the PSA is a guardian or has POA, additional documentation will be required to be submitted at account opening. If there is a PSA on the account, the designated beneficiary/eligible individual cannot act on the account. Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation. Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read . Supporting documentation for any claims, if applicable, will be furnished upon request. The Attainable Savings Plan is offered by the Massachusetts Educational Financing Authority and managed by Fidelity Investments. Qualified ABLE programs offered by other states may provide their residents or taxpayers with state tax benefits that are not available through the Attainable Savings Plan. If you are not a resident of Massachusetts, you should consider whether your home state offers its residents or taxpayers state tax advantages or benefits for investing in its qualified ABLE program before making an investment in the Attainable Savings Plan. The UNIQUE College Investing Plan, U.Fund College Investing Plan, DE529 Education Savings Plan, AZ529, Arizona's Education Savings Plan, and the Connecticut Higher Education Trust (CHET) 529 College Savings Plan - Direct Plan are offered by the state of New Hampshire, MEFA, the state of Delaware, and the state of Arizona with the Arizona State Treasurer's Office as the Plan Administrator and the Arizona State Board of Investment as Plan Trustee, and the Treasurer of the state of Connecticut respectively, and managed by Fidelity Investments. If you or the designated beneficiary is not a New Hampshire, Massachusetts, Delaware, Arizona or Connecticut resident, you may want to consider, before investing, whether your state or the beneficiary's home state offers its residents a plan with alternate state tax advantages or other state benefits such as financial aid, scholarship funds and protection from creditors. Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation. Before investing, consider the investment objectives, risks, charges, and expenses of the mutual fund, exchange-traded fund, 529 plan, Attainable Savings Plan, or annuity and its investment options. Contact Fidelity for a prospectus, offering circular, Fact Kit, disclosure document, or, if available, a summary prospectus containing this information. Read it carefully. 957263.7.0
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
796549.1.0
Mutual Funds and Mutual Fund Investing - Fidelity Investments
Clicking a link will open a new window.h1 Saving & investing for a child
Build more than a nest egg for a child. Together, build the saving and investing skills that will carry them through life.Get started today with a Fidelity account that fits the specific saving needs of you and your child or grandchild—all with no account fees or minimums to open an account 1
br 529 college savings plan
Save smartly for a child's education, with tax-deferred growth and federal income tax-free withdrawals for education expenses that qualify.
br Custodial account UGMA UTMA
Save on behalf of a child—or give a financial gift—with no contribution limit.
br Youth Account
Teens ages 13 to 17 can learn to spend, save, and invest in this brokerage account―with a free debit card and no subscription fees.1
br Roth IRA for Kids
Invest for your child's future retirement, with tax-deferred growth and potential tax-free withdrawals.
br Attainable Savings Plan ABLE
Save and pay for qualified disability expenses, including federal income tax-free withdrawals for expenses that qualify, without potentially impacting benefits like Supplemental Security Income (SSI).
br Ready to get started
Open the account of your choice below.529 college savings plan
Account control Adult controls the account for the benefit of the beneficiary (child). Child eligibility Must have a Social Security number. A beneficiary can be any age. Contribution & gifting limits No annual contribution limits. Overall contribution cap varies by plan. Contribute up to $16,000 per individual ($32,000 for a married couple) free of gift tax in 2022.2 Investment options 2 choices at Fidelity: Age-based investment strategies managed by Fidelity. A custom investment mix from pre-set portfolios made up of Fidelity mutual funds, index funds, and bank deposit accounts. Withdrawals May be taken at any time. No federal income tax will be owed on withdrawals, including any earnings, if the money is used for qualified education expenses.Custodial account UGMA UTMA
Account control Money in the account belongs to the child, with the adult acting as custodian until the child reaches a certain age (between 18 and 25, depending on the state), at which point the assets must be transferred to the child. Child eligibility Must be younger than 18. Contribution & gifting limits No limit on maximum contributions or gifts. Contribute up to $16,000 per individual ($32,000 for a married couple) free of gift tax in 2022. Investment options Our full range of investments, including stocks, options, mutual funds, bonds, CDs, and fractional shares. Withdrawals May be taken at any time, but must be for the benefit of the minor.Youth Account
Account control Money in the account belongs to the teen; it is not a joint or custodial account. Parent/guardian can monitor activity online and through monthly statements, trade confirmations, and debit card transactions. Child eligibility For children aged 13 to 17, a parent/guardian with an existing Fidelity account may open this account on their behalf. Child must have a Social Security card, plus one other form of ID. At age 18, account will be transitioned to a retail brokerage account for free. Contribution & gifting limits Fidelity suggests a $30,000 deposit limit per calendar year. Deposits will be monitored by Fidelity. If the suggested limit is exceeded, we reserve the right to restrict additional deposits and trading capabilities. Investment options Investments are limited to most US stocks, ETFs, and Fidelity mutual funds. Fractional shares are available. Withdrawals May be taken at any time by the account owner (teen). Parent/guardian may not withdraw from this account.Roth IRA for Kids
Account control Money in the account belongs to the child, with the adult acting as custodian until the child reaches a certain age (between 18 and 25, depending on the state), at which point the assets must be transferred to the child. Child eligibility Must be under the age of 18 and must have employment compensation (e.g., babysitting, mowing lawns, shoveling snow, or W-2 income). Contribution & gifting limits Cannot exceed a minor's earnings; e.g., if a minor earns $1,000, then only $1,000 can be contributed to the account.Annual maximum contribution of $6,000 per child, per year for 2021 and 2022. Investment options Our full range of investments, including stocks, options, mutual funds, bonds, CDs, and fractional shares Withdrawals No federal income tax will be owed on withdrawals of contributions, which can be taken at any time. Earnings can be withdrawn tax-free once the account has been opened for 5 years and one of the following conditions is met: child reaches age 59½, death, disability, or qualified first-time home purchase.
Attainable Savings Plan ABLE
Account control The account owner is the eligible individual, or designated beneficiary. If they are a minor, a ) must be designated on the account.3 Child eligibility Must already be receiving benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI). If not, to be eligible, they must be certified blind or disabled by a licensed physician. In all cases, the disability must have begun prior to age 26. Contribution & gifting limits Eligible individual owns the account. Annual contributions may not exceed the federal gift tax exclusion amount, which is $16,000 for 2022 (up to $28,880 per year for a designated beneficiary who is employed and has employment income). Investment options A range of professionally managed investment portfolios. Withdrawals May be taken at any time. No federal income tax will be owed on withdrawals, including any earnings, if the money is used for qualified disability expenses.h2 Additional resources
Start teaching kids about money early with our age-appropriate lessons.
Learn ways to explore college investment options and potential tax advantages.
Learn the ins and outs of the Roth IRA for Kids. Questions?
800-343-3548 529 assets may have a relatively small effect on federal financial aid eligibility because they are considered assets of the parent in the Expected Family Contribution (EFC). Conversely, accounts that are considered assets of the child, such as an UGMA/UTMA account, tend to have a greater effect on federal financial aid eligibility in the EFC calculation. A 529 account owned by a grandparent or another person who is not the parent of the beneficiary could have more of an effect on financial aid. Generally, retirement accounts do not impact financial aid, unless there is a distribution which counts as income. Consult with a tax advisor on your specific situation. 1. Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See for further details. 2. Gift tax exclusion limits apply to gifts. Consult with a tax advisor. An accelerated gift transfer to a 529 plan (for a given beneficiary) of $80,000 (or $160,000 combined for spouses who gift split) will not result in federal transfer tax or use of any portion of the applicable federal transfer tax exemption and/or credit amounts if no further annual exclusion gifts and/or generation-skipping transfers to the same beneficiary are made over the five-year period and if the transfer is reported as a series of five equal annual transfers on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. If the donor dies within the five-year period, a portion of the transferred amount will be included in the donor's estate for estate tax purposes. 3. The PSA must be the designated beneficiary's parent, legal guardian, or agent acting under Power of Attorney (POA). The PSA has full control and authority over the account and must use the account for the benefit of the designated beneficiary. If the PSA is a guardian or has POA, additional documentation will be required to be submitted at account opening. If there is a PSA on the account, the designated beneficiary/eligible individual cannot act on the account. Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation. Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read . Supporting documentation for any claims, if applicable, will be furnished upon request. The Attainable Savings Plan is offered by the Massachusetts Educational Financing Authority and managed by Fidelity Investments. Qualified ABLE programs offered by other states may provide their residents or taxpayers with state tax benefits that are not available through the Attainable Savings Plan. If you are not a resident of Massachusetts, you should consider whether your home state offers its residents or taxpayers state tax advantages or benefits for investing in its qualified ABLE program before making an investment in the Attainable Savings Plan. The UNIQUE College Investing Plan, U.Fund College Investing Plan, DE529 Education Savings Plan, AZ529, Arizona's Education Savings Plan, and the Connecticut Higher Education Trust (CHET) 529 College Savings Plan - Direct Plan are offered by the state of New Hampshire, MEFA, the state of Delaware, and the state of Arizona with the Arizona State Treasurer's Office as the Plan Administrator and the Arizona State Board of Investment as Plan Trustee, and the Treasurer of the state of Connecticut respectively, and managed by Fidelity Investments. If you or the designated beneficiary is not a New Hampshire, Massachusetts, Delaware, Arizona or Connecticut resident, you may want to consider, before investing, whether your state or the beneficiary's home state offers its residents a plan with alternate state tax advantages or other state benefits such as financial aid, scholarship funds and protection from creditors. Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation. Before investing, consider the investment objectives, risks, charges, and expenses of the mutual fund, exchange-traded fund, 529 plan, Attainable Savings Plan, or annuity and its investment options. Contact Fidelity for a prospectus, offering circular, Fact Kit, disclosure document, or, if available, a summary prospectus containing this information. Read it carefully. 957263.7.0
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Person with signature authority PSA
Per federal law, a PSA must be a parent, legal guardian, or have Power of Attorney for the account owner. The PSA must neither have nor acquire any beneficial interest in the account and must administer the account for the benefit of the account owner. Important Information Virtual Assistant is Fidelity’s automated natural language search engine to help you find information on the Fidelity.com site. As with any search engine, we ask that you not input personal or account information. Information that you input is not stored or reviewed for any purpose other than to provide search results. Responses provided by the virtual assistant are to help you navigate Fidelity.com and, as with any Internet search engine, you should review the results carefully. Fidelity does not guarantee accuracy of results or suitability of information provided. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
796549.1.0