The Uniform Transfers to Minors Act (UTMA) provides a simple, inexpensive way to transfer ownership of cash and other financial assets to children. Many people have questions about custodial accounts for minors. Our extensive guide deals with many of the most important issues. Custodial Accounts 10...
There are two types of custodial accounts:Uniform Transfers to Minors Act (UTMA)andUniform Gift to Minors Act (UGMA). Each type of account has its pros and cons, but the main difference is the type of assets that can be used in each account. ...
Custodial accounts, known as Uniform Transfer to Minors (UTMA) or Uniform Gift to Minors (UGMA) are different from college savings accounts. Learn more from our comparison table.Mobile access anytime, access anywhere Wells Fargo Advisors empowers your investment. Use your smartphoneOpens Dialog or...
In the U.S., the Internal Revenue Service (IRS) allows some tax advantages to custodial accounts. Because the minor child is legally the owner of the account, special tax rate rules apply. In 2024, the first $1,250 in earnings in a UGMA or UTMA account — which are deemed “unearned...
(redirected fromCustodial Accounts) Dictionary Financial Graphic Thesaurus🔍 DisplayON AnimationON Legend Synonym Antonym Related </>embed</> cash account custodial... noun Words related to custodial account nouna brokerage firm account that parents have created for a minor ...
Money put into custodial accounts becomes the property of the child and can only be used for their benefit. The state legislation that allows for gifts to children is the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). One or both of those acronyms are ...
One way to do that is to establish a custodial account Roth IRA, or what is known at Fidelity as a Roth IRA for Kids, and more generally as a Roth IRA for minors. A Roth IRA for Kids provides all the benefits of a regular Roth IRA, but is geared toward children under the age ...
Some accounts, such asCoverdell education savings accounts(ESAs) are designed for education expenses, but most custodial accounts, namely uniform transfer to minors accounts (UTMA) and uniform gift to minors accounts (UGMA) can be used for anything benefiting the minor. UGMA and UTMA accounts do ...
A custodial IRA created for the purpose of paying for education expenses may not be the best idea. You should also compare withCoverdell Education Savings Accountsand529 Plans, if your long-term goal is to help the child save for education. ...
However, the rule will not affect custodial accounts. “The Department of Labor [which enforces ERISA rules] does not have jurisdiction over UGMA or UTMA accounts, so [the new] Retirement Security Rule does not have any impact on custodial accounts,” said Phil Korenman, head of individual i...