Custodial IRA

Help your child get a head start on their savings and investments by opening a Schwab Custodial IRA. 
Open a Custodial IRA today.

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View important information about our online equity trades and Satisfaction Guarantee


1. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.

2. If you are not completely satisfied for any reason, at your request Charles Schwab & Co., Inc. ("Schwab"), Charles Schwab Bank, SSB ("Schwab Bank"), or another Schwab affiliate, as applicable, will refund any eligible fee related to your concern. No other charges or expenses, and no market losses will be refunded. Refund requests must be received within 90 days of the date the fee was charged. Schwab reserves the right to change or terminate the guarantee at any time. Go to schwab.com/satisfaction to learn what’s included and how it works.


What is a Custodial IRA?

A Custodial IRA is an Individual Retirement Account that a custodian (typically a parent) holds for a minor with an earned income. Once the Custodial IRA is open, all assets are managed by the custodian until the child reaches age 18 (or 21 in some states). All funds in the account belong to the child, allowing them to get started early on saving money. In addition to reaping the benefits of compounded growth, your child may be able to use the funds for future expenses like college tuition or even to buy a first home. You can open either a Custodial Roth IRA or Custodial Traditional IRA, and the respective account benefits and rules apply.

Ready to get your child on the right track toward their future savings? Read on for more account details and what you need to know before opening a Custodial IRA. 

Custodial IRAs at a glance:

  • Can be either a Traditional IRA or a Roth IRA.
  • Must be transitioned to the child when he or she reaches the "age of majority," typically 18 or 21 years old.
  • Can give children a head start on saving for future needs, such as college tuition or retirement.

Advantages of a Custodial IRA

  • Control of the account until your child turns 18 (or 21 in some states)

    You can choose from  a Roth IRA or a Traditional IRA.

  • Penalty-free withdrawals

    The funds can be used to cover qualified higher education expenses.

Fees and commissions

Open an account with a $0 minimum deposit plus get $0 online listed equity trade commissions3, regardless of your account balance or how often you trade.

View important information about our fees and commissions


3. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc.



This tax information

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. Depending on the type of account you have, there are different rules for withdrawals, penalties, and distributions.  Please understand these before opening your account.


Benefits of a Custodial IRA with Schwab

  • Retirement planning tools and resources

    Schwab offers planning resources, calculators and retirement income strategies, to help you plan for the future.

  • Investing insights

    Stay informed with the latest market commentary, insights, and investing ideas from Schwab experts. 

  • Get support 24/7 + convenience of 300+ branches

    Call our financial professionals anytime. Plus get local support at a branch near you.

Common questions

Have questions about our Custodial IRA? Here are responses to some of the most common questions we hear. If you have a specific question that's not answered here, please call us at 866-855-5635.
 

It's quick and easy to open a Schwab Custodial IRA. Download a Schwab Custodial IRA application. It helps to have the following information on hand before you open an account:

  • Your Social Security number
  • Your driver's license number
  • Your employer's name and address (if applicable)
  • Statement information for funds you may want to transfer

Once you have completed your application, mail it to:

Charles Schwab & Co., Inc. 
Attn: IS Document Control 
P.O. Box 982600 
El Paso, TX 79998-2600 

We'll send you your account number as soon as your application is completed and approved. You can use your account number to log in to Schwab.com to manage your account.

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 Education Savings Accounts and the 529 Savings Plan.

As the custodian, you control the assets in the Custodial IRA until your child reaches the age of 18 (or 21 in some states). At that time, you must turn the assets over to the minor. 

Take the next step

  • Take the next step

    Download a Custodial IRA application, complete, and send it to: 

    Charles Schwab & Co., Inc. 
    Attn: IS Document Control 
    P.O. Box 982600 
    El Paso, TX 79998-2600
     

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