Saving & investing for a child

Build more than a nest egg for a child. Start the saving and investing habits 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

529 College
Savings Plan

Custodial Account
(UGMA/UTMA)

Roth IRA
for Kids

Attainable Savings
Plan (ABLE)

Suited for

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Education

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Financial gifts

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Retirement

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Disability expenses

Overall

Build an education nest egg for a child, 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. 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).

Account control

Adult controls the account for the benefit of the beneficiary (child). 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. 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. The account owner is the eligible individual, or designated beneficiary.

If they are a minor, a person with signature authority (PSA) must be designated on the account.2

Child eligibility

Must have a Social Security number.

A beneficiary can be any age.
Must be younger than 18. Must be under the age of 18 and must have employment compensation (e.g., babysitting, mowing lawns, shoveling snow, or W-2 income). 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

No annual contribution limits. Overall contribution cap varies by plan. Gift tax limits apply.3 No limit on maximum contributions or gifts. Contribute up to $15,000 per individual ($30,000 for a married couple) free of gift tax in 2021. 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 2020 and 2021.
Eligible individual owns the account.

Annual contributions may not exceed the federal gift tax exclusion amount, which is $15,000 for 2021.

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.
Our full range of investments, including stocks, options, mutual funds, bonds, CDs, and fractional shares. Our full range of investments, including stocks, options, mutual funds, bonds, CDs, and fractional shares. 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 education expenses.
May be taken at any time, but must be for the benefit of the minor. 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. 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.

Learn more

Learn more

Learn more

Learn more

Additional resources

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Tips for raising a saver


Start teaching kids about money early with our age-appropriate lessons.

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The ABCs of 529 savings plans


Learn ways to explore college investment options and potential tax advantages.

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Turbocharge your child's retirement


Learn the ins and outs of the Roth IRA for Kids.

Ready to get started?

Questions?
800-343-3548