When can you withdraw money from a custodial account?
As the custodian, you can withdraw money from a custodial account if you need to use it to pay for something that will benefit the minor. You can’t take the money back yourself, or give it to someone else. Some examples of eligible expenses include college or high school tuition, extracurricular activities, sports or music classes, etc.
Please note that this differs from 529 and Coverdell plans. With 529 plans, you can only withdraw for eligible higher education expenses. In the case of Coverdell plans, withdrawals can only be made for the purposes of K-12 and higher education expenses.
If you are the beneficiary of the custodial account, you can withdraw funds once you legally become an adult.
Need to use some custodial money for a young person? Contact Support and they’ll help you get started with a withdrawal.
The adult (or Custodian) who opens the account can manage the money and investments until the minor reaches the “age of majority.” That age is usually 18 or 21, depending on the Custodian’s state. The money in a custodial account is the property of the minor. Money in a custodial account can be used by the parent or legal guardian, but only to do things that benefit the child.
Related questions View all Custodial
Q. When will my trades get executed in my Smart portfolio?
Once your money has completed the transfer and arrived in your account, we’ll execute your trades. Typically, this takes 1-2 business days. Please note that a business day is Monday through Friday, excluding weekends and US market holidays. DISCLOSURES This type of account is a Discretionary Managed Account.…0
Q. Once I deposit money into my Smart portfolios, do I need to do anything?
Nope! We’ll handle the rest—this is smart investing, after all. You might want to consider investing (depositing money) regularly, though. That way your investments can grow through the magic of compound interest. DISCLOSURES This type of account is a Discretionary Managed Account.…0
Q. How much can I withdraw from my smart portfolio?
You can request a withdrawal from your smart portfolio for up to the total value of your Smart portfolio — minus any pending withdrawals. For example, if your Smart portfolio is worth $1,000, you can request a withdrawal for the full balance of $1,000 or any number up to $900.…0
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