Custodial IRA

Help your child get a head start on their savings and investments by opening a Schwab Custodial IRA. 
Open a Custodial IRA today.

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What is a Custodial IRA?

A Custodial IRA is an Individual Retirement Account that a custodian (typically a parent) holds for a minor with an earned income. Once the Custodial IRA is open, all assets are managed by the custodian until the child reaches age 18 (or 21 in some states). All funds in the account belong to the child, allowing them to get started early on saving money. In addition to reaping the benefits of compounded growth, your child may be able to use the funds for future expenses like college tuition or even to buy a first home. You can open either a Custodial Roth IRA or Custodial Traditional IRA, and the respective account benefits and rules apply.

Ready to get your child on the right track toward their future savings? Read on for more account details and what you need to know before opening a Custodial IRA. 

Custodial IRAs at a glance:

  • Can be either a Traditional IRA or a Roth IRA.
  • Must be transitioned to the child when he or she reaches the "age of majority," typically 18 or 21 years old.
  • Can give children a head start on saving for future needs, such as college tuition or retirement.

Advantages of a Custodial IRA

  • Control of the account until your child turns 18 (or 21 in some states)

    You can choose from  a Roth IRA or a Traditional IRA.

  • Penalty-free withdrawals

    The funds can be used to cover qualified higher education expenses.

Fees and commissions

Open an account with a $0 minimum deposit plus get $0 online listed equity trade commissions3, regardless of your account balance or how often you trade.

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This tax information

This tax information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends that you consult with a qualified tax advisor, CPA, financial planner, or investment manager. Depending on the type of account you have, there are different rules for withdrawals, penalties, and distributions.  Please understand these before opening your account.

Benefits of a Custodial IRA with Schwab

  • Retirement planning tools and resources

    Schwab offers planning resources, calculators and retirement income strategies, to help you plan for the future.

  • Investing insights

    Stay informed with the latest market commentary, insights, and investing ideas from Schwab experts. 

  • Get support 24/7 + convenience of 300+ branches

    Call our financial professionals anytime. Plus get local support at a branch near you.

Common questions

Have questions about our Custodial IRA? Here are responses to some of the most common questions we hear. If you have a specific question that's not answered here, please call us at 866-855-5635.

Take the next step

  • Take the next step

    Download a Custodial IRA application, complete, and send it to: 

    Charles Schwab & Co., Inc. 
    Attn: IS Document Control 
    P.O. Box 982600 
    El Paso, TX 79998-2600

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