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What Is a Custodial Account?

By Kristi WaterworthUpdated Aug 7, 2025 at 7:01 PM

Key Points

  • Custodial accounts let adults invest for minors, with tax benefits if related.
  • Unlike 529 plans, custodial accounts have no contribution limits or penalties.
  • Assets in custodial accounts can impact a minor's eligibility for student aid.

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