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. Plus, your family and friends can contribute funds to your child’s UNest Investment Account for Kids through a shareable gift link.
What can I use the funds I save in UNest for?
UNest is way 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 milestone .
What are the tax benefits of a UNest account for my child?
Up to $2,200 in annual earnings in a UNest Investment Account for Kids grow in a tax-advantaged way. The first $1,100 of the earnings is completely tax-free. The next $1,100 is taxed at the child’s tax rate. Anything exceeding $2,200 is taxed at the parents’ tax rate. This threshold is only applicable to gains in the account and not to the original contributions.
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. Gift funds received but not yet invested are FDIC insured up to $250,000 with our bank partner, First Horizon Bank, Member FDIC.
When can my child access the money in their UNest Investment Account for Kids?
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 FDIC insured?
All UNest tax-advantaged Investment Account for Kids are SIPC-insured up to $500,000 (up to $250,000 for cash claims), with our broker-dealer Apex Clearing Corporation, Member SIPC. Gift funds received but not yet invested are FDIC insured up to $250,000 for your benefit with our bank partner, First Horizon Bank, Member FDIC.
Why invest in UNest instead of 529 plan?
Both 529 plans and UNest custodial accounts provide a great tax-advantaged way for parents and others to help save for a child’s tuition and other educational expenses. UNest’s Investment Account for Kids offers a significant benefit to parents that are looking for a flexible way to save for all the future life stages your child will experience. This may or may not include education.
In contrast to 529 plans that can only be used for qualified educational expenses, you can use the funds you invest in UNest for any expense that benefits the child named on the account. If an account holder uses funds from a 529 plan for non-education related expenses, they lose tax advantages and earnings are subject to a 10% penalty.
Is my money safe?
Security is a priority for UNest. UNest provides the highest levels of security to ensure your information and data is safe. All accounts are protected with 256-bit SSL encryption and continually monitored for extraordinary or suspicious activity by our Compliance team.
In addition, 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 total. Gift funds received but not yet invested are FDIC insured up to $250,000 with our bank partner, First Horizon Bank, Member FDIC.
Is UNest registered as a financial advisor?
Yes, UNest is a registered investment advisor (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 or Uniform Transfers to Minors Act allows the custodian, such as a parent, grandparent, relative, or friend, to open an account for a beneficiary, such as a child or grandchild. When the custodian sets up the account, the custodian picks what age the beneficiary will take control of the account. This is normally between 18 and 25, depending on the state the custodian resides. This investment account for children receives up to $2,200 in annual tax benefits on the earnings portion. UNest Investment Account for Kids leverages the benefits of UTMAs.