Custodial IRA FAQs
Only Traditional IRAs and Roth IRAs can be Custodial IRAs.
Yes, you can transfer a Custodial IRA to Schwab from another institution.
No. All contributions made into the Custodial IRA are considered irrevocable transfers for the benefit of the child.
No. The same contribution and distribution rules that apply to Traditional and Roth IRAs also apply to Custodial IRAs.
Yes. The funds can be used to cover qualified higher education expenses, as long as the educational institution is eligible to participate in the Department of Education's student aid programs. Learn more about additional options including Education Savings Accounts
and the 529 Savings Plan
This tax information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends that you consult with a qualified tax advisor, CPA, financial planner, or investment manager.