to save and invest for a specific purpose (education), while investments in a custodial account can be used for any purpose. Second, assets in a 529 plan are the legal property of the parent, or whomever opens
At its simplest, a custodial IRA is an IRA for a minor with earned income. The IRA is opened in the name of the minor (under their Social Security number), but is managed managed by custodian (usually a parent, grandparent, or legal guardian), generally until the minor reaches age 18 ...