Why should I open a UNest account?

UNest makes it easy for parents to invest in their children's future with a simple, flexible, and tax-advantaged custodial account* for minors.

What can I use the funds I save in UNest for?

UNest is more flexible than other saving accounts that can only be used for education. Funds saved can be used across any of your child's life events like college, their first car, down payment on the house, wedding day or any other important milestones.

What are the tax benefits of a UNest account for my child?

In 2025, up to $2,700 in annual earnings in a UNest Investment Account for Kids may grow in a tax-advantaged way. The first $1,350 of the earnings may be completely tax-free. The next $1,350 is taxed at the child's tax rate. Anything exceeding $2,700 is taxed at the parents' tax rate. This threshold applies only to gains in the account and not to the original contributions.

These thresholds are based on the IRS guidelines for the "kiddie tax," which apply to unearned income for children under certain age limits. It's important to note that these amounts are subject to change, and consulting a tax professional is recommended.

Where is my money held?

Investment accounts are held with our trusted partner and custodian, Apex Clearing Corporation, a third-party SEC registered broker-dealer and member of FINRA and Securities Investor Protection Corporation (SIPC). This means the investments in your account are protected up to $500,000 in total.

When can my child access the money?

Children can access funds in their UNest account when they reach adulthood. This may be anywhere from 18 to 25. Your state of residence will determine which rules apply to you.

Is my account insured?

All UNest investment accounts are insured by Securities Investor Protection Corporation (SIPC) for up to $500,000 (up to $250,000 for cash claims).

Why invest in a UNest custodial account instead of a 529 plan?

Both 529 plans and UNest custodial accounts provide a great tax-advantaged way for parents to help save for a child's future. UNest offers greater flexibility—you can use the funds for any expense that benefits the child, not just education. If 529 funds are used for non-education expenses, you lose tax advantages and earnings are subject to a 10% penalty.

Is my money safe?

Security is a priority for UNest. All accounts are protected with 256-bit SSL encryption and continually monitored for suspicious activity. Investment accounts are held with Apex Clearing Corporation, a member of FINRA and SIPC, meaning your investments are protected up to $500,000.

Is UNest an investment advisor?

Yes, UNest Advisers, LLC is a registered investment adviser (RIA) with the U.S. Securities and Exchange Commission (SEC).

What is UTMA/UGMA?

They are investment accounts with a custodian for the minor. The Uniform Gift to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) allows a custodian to open an account for a beneficiary. UNest Investment Account for Kids leverages the benefits of UTMAs.

Which is better, UGMA or UTMA?

The biggest difference is that UTMAs allow for more types of assets including real estate, art, patents, and cars, while UGMAs are typically limited to stocks, bonds, and mutual funds.

How will the funds be made available to the child?

On reaching the age of majority (usually 21 years), UNest will convert the account to an individual brokerage account in the child's name.

What happens if the custodian dies?

A new custodian must be named. The custodian may designate a successor by contacting UNest customer support. If the minor passes before reaching majority, the account becomes part of their estate.

What do I need to open a UNest Investment Account for Kids?

To open a UNest account you need the following for both you and the child:

• Legal name
• Date of Birth
• Social Security Number or ITIN
• Address of residency
• U.S. Citizenship or legal residency information

You also need to connect a U.S.-based, verified, personal bank account in the name of the custodian.

Why do I need to provide my social security number?

Financial institutions use your SSN to verify identities and report investment income or losses to the IRS. This information is securely encrypted with restricted access.

Can I open the account if I (or the child) is not a US citizen?

If either you or the child are not U.S. Citizens, you both need: a residential U.S. address, a Social Security Number or ITIN, and be a Permanent Resident Card holder (Green Card).

How much does it cost to open a UNest account?

Our goal is to democratize investment for all. See our pricing for current options.

Who can I open an account for?

You can open an account for any child (minor) under the age of 17. The child does not have to be related to you.

Can I open an account for each of my children?

Yes! And you can manage multiple accounts easily through UNest's iOS or Android apps.

Can I open an account for a future child?

Yes, you may open an account for an expecting child in the name of the custodian. Once the child has a Social Security number, an account will be created for them.

Can I open more than one account per child?

You can only open one account per child, but other people can also open accounts on behalf of the child and act as custodian.

What is the minimum amount I can contribute each month?

The minimum contribution is $25 per month.

Am I required to set up a monthly contribution when I sign up?

UNest recommends starting with disciplined and consistent monthly contributions. We start you off for as little as $25 per month. You may increase or temporarily pause contributions at any time.

What is the maximum annual contribution?

In 2025, you can contribute up to $19,000 per individual (or $38,000 for a married couple) annually without incurring federal gift tax. The lifetime estate and gift tax exemption is $13.99 million per individual in 2025. Consult a tax professional for personalized information.

Can I add money to my account at any time?

Yes, in addition to recurring contributions, you can make one-time deposits at any time.

How will the contribution be made?

After opening an account, you'll securely connect a verified bank account. Funds transfer via ACH for one-time deposits or monthly contributions.

How do I connect my bank account to UNest?

You can securely connect your bank account via instant verification with our partner, Plaid.

What are additional ways to receive funds?

UNest Rewards lets you earn investments by shopping with partner brands. You can also refer friends—you'll each receive $50 when they open and fund an account for at least 60 days.

Can I pause contributions at any time?

Yes, you may temporarily pause recurring monthly contributions via the UNest app.

Are gifts from family and friends tax-deductible?

No, these are considered cash gifts set aside for investment into the UNest account.

Can I change the bank I use to make contributions?

Yes, update your funding source anytime in the UNest app: Home screen → "My Profile" → "Bank Details" → "Change Accounts".

Can I roll over a 529 into my UNest account?

Due to 529 legal requirements, you cannot rollover 529 funds automatically. However, you can open a UNest account with greater flexibility. There are no restrictions on having multiple investment accounts for the same child.

How is my money invested?

UNest offers various investment strategies, from very conservative to very aggressive. Our portfolios include age-based options and socially responsible options that become more conservative as the child gets older. All portfolios invest in low-cost ETFs.

To see your current portfolio: Open the app → Tap child's account → Tap "Portfolio".

What investment options are available?

UNest currently offers eight portfolios:

• A conservative option (fixed income and bond ETFs)
• Three age-based options (conservative, moderate, aggressive)
• Three socially responsible age-based options (conservative, moderate, aggressive)
• An aggressive option (100% equity ETFs)

Can I create a custom investment portfolio?

Unfortunately, this is not a feature UNest supports.

Can I change my portfolio selection?

Yes, you can change portfolios at any time. Note there may be tax implications as we'll need to sell investments to invest in the new portfolio.

What are the tax benefits?

You can contribute up to $19,000 per individual ($38,000 for married couples) annually in 2025 without federal gift tax. The first $1,350 of annual earnings is tax-free, the next $1,350 is taxed at the child's rate, and earnings above $2,700 are taxed at the parents' rate.

Are my own contributions tax-deductible?

No, contributions are made with after-tax dollars, so there is no income tax deduction.

Are the earnings taxed?

In 2025, up to $2,700 in annual earnings may grow tax-advantaged. The first $1,350 is tax-free, the next $1,350 at the child's rate, and anything above at the parents' rate. This applies only to gains, not contributions.

How can I claim my tax benefits?

UNest will provide you with a 1099 form. You can claim your child's income on IRS Form 8814 attached to Form 1040. UNest does not give tax advice—please consult a tax professional.

Will I be penalized when I withdraw money?

No penalty to withdraw. Remember, any funds withdrawn must be used to benefit the child named on the account.

What is Gifting?

UNest Gifting is being redeveloped and is currently unavailable. We will let you know when we launch our next version.

What is "UNest Rewards"?

UNest Rewards lets you earn cash into your child's account by purchasing products and services with our partners via the UNest app.

What information do you share with partners?

We share the bare minimum to confirm reward eligibility. We pass an alphanumeric code when you click an offer—no email, phone number, or personal information is shared.

How long will it take to receive my reward?

It may take up to 60 days for rewards to reach your account. You must have a funded UNest account to be eligible.

What is the reward for referring UNest to my friends?

We will deposit $50 into both of your UNest accounts after your friend's account has been funded for at least 60 days. Please read the full terms and conditions here.

How much does it cost to invest with UNest?

Our goal is to democratize investment for all at a much lower cost than traditional financial advisors. See our pricing page for current options.

What is the fee if I have multiple children?

UNest's pricing is flat-rate per-user. A user may open an account for multiple children under the same subscription. See our pricing page for current options.

Can I use an online bank to make contributions?

Yes. We use secure online instant verification with Plaid. Over 2,000 financial institutions are supported.

What if I experience a problem connecting my bank?

First, login to your bank's online site to check your credentials. Multiple invalid attempts can lock your account or trigger a cool-down period. If credentials are correct and errors persist, your bank may be experiencing downtime. Contact support in your UNest app for help.

How do I close my account?

1. Open the UNest app and log in
2. Tap on the child's account you want to close
3. Tap the "gear" icon and choose "Withdraw Funds"
4. Select "Close Account"

Funds will be returned to your connected bank within 10-15 business days. Some exceptions may take longer.

Is there any holding period to withdraw?

In some cases there may be a holding period for newly created accounts, recent deposits or gifts, or if you've recently changed your connected bank account.

Can I withdraw whenever I want? Are there penalties?

Yes, you can withdraw penalty-free at any time. Remember, funds must be used to benefit the child named on the account. Consult your tax professional for requirements.

Crypto trading is no longer available via UNest as of November 4, 2024.