To start saving for your child’s education or building that nest egg with a Firstrade custodial account. Firstrade makes it easy to open and manage with no custodian income limits or minimum deposit requirements.

What exactly is a custodial account you ask?

It’s an investment account set up for a minor under the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) based upon your state of residence. So unlike popular education accounts such as a 529 plan, you don’t have to be 18 years old or older to own them.

For that up-and-coming financial genius in your life, a custodial account is set up for a minor with money that is gifted to the child. The assets held in the account are owned by the minor under his or her name and social security number. And, the money can be used for any purpose, not just tuition, as long as it’s legally used for the benefit of the child.

The account is administrated by a custodian (usually a parent), who will manage the account for the minor’s benefit until he or she reaches the age of majority (18 or 21 depending on the state).

For the parent, a custodial account not only lets you manage your child’s assets, it provides a gift tax advantage (up to the maximum contribution allowed)  and the flexibility to invest in any combination of investment products. Here’s how:

• You can contribute up to $15,000 per person annually.

• The first $1,050 in earnings is tax-free, the next $1,050 of earnings is taxed at the child's tax rate, and the earnings over $2,100 is taxed at the adult's tax rate.

• You can invest in stocks, ETFs, mutual funds, bonds, and up to level 2 options trading.

• You can withdraw the money for any purpose without time restrictions, as long as it’s for the benefit of the minor.

• When the maximum allowed contribution exceeds $15,000, a gift tax could be incurred.

To enroll and learn more about a Firstrade custodial account, go here.