Saving & investing for a child

Compare your options.

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)

Youth
Account

Roth IRA
for Kids

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Education

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Financial gifts

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Teaching good habits

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Retirement

Save smartly for a child's education, 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. Teens ages 13–17 can learn to make, manage, and invest in the Fidelity Youth™ app—with a free debit card2 and no subscription fees, account fees, or minimums to open.1 Invest for your child's future retirement, with tax-deferred growth and potential tax-free withdrawals.

Account ownership

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 teen; it is not a joint or custodial account. Parent/guardian can monitor activity online and through monthly statements, trade confirmations, and debit card transactions. 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.

Child eligibility

Must have a Social Security number.

A beneficiary can be any age.
Must be younger than 18. For children aged 13 to 17, a parent/guardian with an existing Fidelity account may open this account on their behalf. Child must have the last four digits of their Social Security number, plus one form of ID. At age 18, account will be transitioned to a retail brokerage account for free. Must be under the age of 18 and must have employment compensation (e.g., babysitting, mowing lawns, shoveling snow, or W-2 income).

Contribution & gifting limits

No annual contribution limits. Overall contribution cap varies by plan. Contribute up to $18,000 per individual ($36,000 for a married couple) free of gift tax in 2024.3 No limit on maximum contributions or gifts. Contribute up to $18,000 per individual ($36,000 for a married couple) free of gift tax in 2024. Fidelity suggests a $30,000 deposit limit per calendar year. Deposits will be monitored by Fidelity. If the suggested limit is exceeded, we reserve the right to restrict additional deposits and trading capabilities. 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 per child of $7,000 for 2024.

Investment options

Fidelity offers 2 strategies: 1) Age-based automatically adjusts asset allocation based on beneficiary's age. 2) Custom allows you to allocate to static, individual, bank deposit and age-based portfolios. Our full range of investments, including stocks, options, mutual funds, bonds, CDs, and fractional shares. Investments are limited to most US stocks, ETFs, and Fidelity mutual funds. Fractional shares are available. Our full range of investments, including stocks, mutual funds, bonds, CDs, and fractional shares.

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. May be taken at any time by the account owner (teen). Parent/guardian may not withdraw from this account. 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.
 

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Attainable Savings Plan (ABLE)

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Account control 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.4

Child eligibility 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 Eligible individual owns the account. Annual contributions may not exceed the federal gift tax exclusion amount, which is $18,000 for 2024.

Investment options 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 disability expenses.

Additional resources


Tips for raising a saver


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


The ABCs of 529 savings plans


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


Turbocharge your child's retirement


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

Questions?
800-343-3548