Custodial accounts are taxed based on the income of the account. An investment account can earn income from dividends, bond payments, or buy selling stock. Custodial accounts have different tax rules than a brokerage account owned by an adult. The custodial account rate can depend on the tax rate of both the child and the adult who set up the custodial account.
Onu does not provide tax advice. Please consult with a tax professional regarding your personal circumstances.
The custodial account's income can be taxed differently at different stages of the child's life. Tax rates also depend on the account's growth. You should always ask your tax advisor for details if you want more clarity.
This information is educational, and is not an offer to sell or a solicitation of an offer to buy any security. This information is not a recommendation to buy, hold, or sell an investment or financial product, or take any action. This information is neither individualized nor a research report, and must not serve as the basis for any investment decision. All investments involve risk, including the possible loss of capital. Past performance does not guarantee future results or returns. Before making decisions with legal, tax, or accounting effects, you should consult appropriate professionals.