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. 

Making a withdrawal from a Custodial account

Follow these steps to make a partial withdrawal from a Custodial account:

Looking to close your Custodial account? Please give us a call at 800-205-5164 from 8:00 a.m.-8:00 p.m. ET Monday-Friday, or email us at support@stash.com.

1. Link your external bank account. Get help linking your bank account here
2. Sell a portion of your investments held in your Custodial account, then wait up to three business days for the sales to settle. Find out how to sell an investment here
3. Wait up to an additional five days for any recent deposits on hold to become available to withdraw.
4. After the sale has settled, contact us to make the withdrawal at 800-205-5164 from 8:00 a.m.-8:00 p.m. ET Monday-Friday, or email us at support@stash.com.

DISCLOSURES

“Kids Portfolio” is a custodial UGMA / UTMA account. Money in a custodial account is the property of the minor. This type of account is a Non-Discretionary Managed account.