Merrill A Bank of America Company Merrill A Bank of America Company Open an account Login Open Menu bar Find answers to common questions at MerrillSchedule an Open an accountwith Merrill Select toOpen an account Question: Who can contribute to a custodial account? Answer: Anyone can contribute to a custodial account, including family members and friends. Find out how much you may need to save for college with our College Planning Calculator and prepare for the cost of higher education. Select toTry our College Planning Calculator Select toOpen an account Find your preferred way to invest, whether you're interested in simple stock trades, mutual funds, ETFs or fixed income and bonds. Select to learn more aboutStocksSelect to learn more aboutMutual FundsSelect to learn more aboutETFsSelect to learn more aboutFixed Income Merrill offers transparent pricing for trades, account services and investment advisory programs. Select toOpen an account or call us at 888.637.3343 Expand all The Uniform Gift to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) are custodial accounts that allow you to invest for a college education or any other expense that benefits the minor. Funds in the account are considered an irrevocable gift that becomes the minor's assets once they reach age of termination. Assets in a UGMA/UTMA custodial account are treated as an asset of the beneficiary, which is weighted at 20% towards the federal financial aid calculation. This is based on current interpretation of federal financial aid rules. Financial aid rules may change, and the rules in effect at the time the beneficiary applies may be different. For more complete information, please go to the Department of Education's website at Go to third-party website www.ed.govpopup. In 2023, the first $1,250 of a child's income generally is tax-exempt, the next $1,250 of unearned income generally is taxed at the child's tax rate, and unearned income over $2,500 generally is taxed at the parent's tax rate if the child is under 18, or the child is age 18 and does not have earned income that is more than half of his or her financial support, or is a full-time student who is at least age 19 and under age 24 and who does not have earned income that is more than half of his or her financial support if at least one parent is living at the end Access a full range of investments choices, including: stocks, exchange-traded funds (ETFs), bonds and thousands of well-known mutual funds. The account is owned by a custodian until the child inherits the assets upon age of termination. The custodian has the responsibility to transfer the assets to the minor upon the attainment of the age of termination. Beneficiaries cannot be changed because contributions into the account are considered an irrevocable gift. There's no limit to the amount you can contribute. And there's no age limit for making contributions and withdrawals, but account ownership will be transferred to the minor upon age of termination. You can contribute up to the annual gifting limits of $17,000 (or $34,000 for couples) annually gift tax-free. Anyone can contribute to a custodial account, including family members and friends. Footnote Certain banking and brokerage accounts may be ineligible for real-time money movement, including but not limited to transfers to/from bank IRAs (CD, Money Market), 529s, Bank of America Advantage SafeBalance Banking™, Credit Cards and transfers from IRAs, Loans (HELOC, LOC, Mortgage) and accounts held in the military bank. Accounts eligible for real-time transfers will be displayed online in the to/from drop down menu on the transfer screen. MAP5752197-06302024 Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets. Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF). Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp"). Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp. Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Investment products offered through MLPF&S and insurance and annuity products offered through MLLA: Privacy|Security|Glossary|Advertising practicespopupAdvertising Practicespopup © 2024 Bank of America Corporation. All rights reserved. 4326521
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A custodial account allows you to invest on behalf of a minor for a college education or any other expense that benefits them.
Custodial Account Features
Choose how you want your account managed
Make contributions up to annual gift tax limits
Enjoy the flexibility of a cash management account
Manage the account until the minor is of age
Do you know how much you may need to save for college expenses?
See what else your Merrill account has to offer
Discover your investment choices
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Frequently Asked Questions
Custodial Accounts FAQs
What are some key features of a custodial account?
How does investing in a UGMA/UTMA custodial account impact financial aid?
What are the tax advantages of a custodial account?
What are the investment choices for a custodial account?
Who controls a custodial account?
How much can I contribute to a custodial account?
Can anyone else contribute to a custodial account?
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity
Decide How You Want to InvestMake your own investments or have Merrill investment professionals manage your portfolio for you, with the option to work with an advisor.Select toCompare your optionsManage Investments on the GoAccess your Merrill accounts, make transfers and invest from wherever you are, all from the convenience of your mobile device.Footnote1Select toDiscover mobile capabilitiesInvest For College ExpensesSave for college expenses while enjoying tax advantages and high contribution limits when you invest with a 529 plan.Select toLearn more about 529 Plans
