Fidelity Youth Account Agreement

When it comes to saving money, it`s never too early to start. So have you considered opening a Fidelity Youth Account for your child? Before you do, it`s important to understand the terms of the agreement.

The Fidelity Youth Account agreement outlines the terms and conditions of the account, including eligibility, contributions, and withdrawals. Here are some important points to keep in mind:

Eligibility: To open a Fidelity Youth Account, the child must be a U.S. citizen or resident, under the age of 18 and have a valid Social Security number. The account must also be opened in the child`s name, and a parent or legal guardian must be listed as the custodian.

Contributions: The account has no minimum contribution requirement, but the maximum annual contribution limit is $6,000. Contributions can come from the custodian or any other individual, such as grandparents or other family members. However, the contribution must be made in cash or cash equivalents, such as a check or electronic transfer.

Withdrawals: Withdrawals from the account can only be made by the custodian on behalf of the child. The custodian must provide proof of the child`s age and identity and must use the funds for the child`s benefit. Withdrawals may be subject to taxes and penalties if not used for qualified education expenses or if taken before the age of 59 ½.

Fees: There are no annual account fees or minimum balance requirements for the Fidelity Youth Account. However, custodians may incur fees for certain transactions, such as wire transfers or foreign currency exchanges.

In conclusion, opening a Fidelity Youth Account can help teach your child the importance of saving money and investing for the future. Just be sure to read and understand the account agreement before opening the account and making any contributions or withdrawals.