PALO ALTO, Calif., June 23, 2026 (GLOBE NEWSWIRE) — Wealthfront Company (Nasdaq: WLTH), a tech-driven monetary platform serving to digital natives flip their financial savings into wealth, as we speak introduced the growth of its household wealth administration choices with the launch of its Custodial Account. This new product offers a versatile approach for fogeys to save lots of for his or her baby’s future and is among the solely custodial accounts designed to mechanically decrease the kid’s future tax burden via Tax-Achieve Harvesting. To kickstart wealth constructing for the following technology, Wealthfront is providing $100 in seed funding for shoppers who open and fund both a brand new Custodial Account or a 529 Training Financial savings Plan by July 23, 2026.
“Compounding over time is among the strongest methods to develop wealth, and fogeys who begin investing early for his or her youngsters’ futures can provide them a significant head begin by benefiting from as much as an additional 18 years of market development,” stated David Fortunato, CEO of Wealthfront. “Including Custodial Accounts to our rising household wealth administration choices will enable us to ship extra worth to our shoppers as they change into dad and mom and start constructing a monetary basis for the following technology.”
Wealthfront’s latest household wealth administration product comes as dad and mom face a posh financial panorama. Elevating a baby to 18 within the U.S. is estimated to price greater than $300,000, and is predicted to proceed growing with inflation. Investing early is a brilliant technique to counter rising prices and set kids up for monetary success. With a $500 minimal and a low, annual 0.25% advisory payment, Wealthfront’s Custodial Account offers dad and mom with an automatic technique to steadily spend money on a globally diversified portfolio that is designed to melt the impression of the market’s ups and downs.
Designed for busy dad and mom, this totally automated account handles the heavy lifting of portfolio development, rebalancing, and tax optimization. It affords a easy, versatile different for fogeys whose kids are ineligible for the federal seed funding at present supplied via 530A Trump Accounts, in addition to these saving for objectives past training or retirement. Custodial account funds can be utilized for virtually something that advantages the kid (with the exception of fundamentals like meals and housing) and there are not any contribution caps or early withdrawal penalties. Dad and mom handle the account till the kid reaches the age of switch (sometimes between 18 and 25, relying on the state), at which level management shifts fully to the kid.
Wealthfront knowledge exhibits that digital natives with kids are closely targeted on constructing wealth for his or her household’s future. Shoppers recognized as dad and mom (through account utilization or in-product exercise) keep a median of $91,000 throughout their funding accounts, versus about $27,000 held by these with out kids. That is partially pushed by investments for future training bills: shoppers who held a 529 account over the past 5 years (from June 1, 2021, to June 1, 2026) doubled their common stability from $30,000 to $60,000 over that interval.
“Our product roadmap stays targeted on increasing our choices to assist and develop alongside our shoppers via completely different life phases. The Wealthfront Custodial Account is the newest instance of this focus, and we’re excited to present households extra choices to save lots of for his or her kids and supply the following technology with a robust monetary basis for no matter path they select,” stated Dave Myszewski, VP of Product. “As a dad or mum myself, it’s thrilling to supply an automatic, tax-efficient Custodial Account that can assist households assist their baby’s future, whether or not it’s saving for a down cost, introducing them to investing, or constructing a nest egg.”
The corporate’s new providing is among the solely custodial accounts designed to decrease a baby’s future taxes. Wealthfront’s software program automates a Tax-Achieve Harvesting technique designed to reap the benefits of the favorable federal tax remedy obtainable to kids, serving to notice as much as $1,350 in tax-free development every year with out requiring a federal tax return submitting, whereas additionally looking for to keep away from triggering state tax submitting necessities based mostly on the beneficiary’s state of residence. It does this by mechanically promoting appreciated investments yearly to appreciate beneficial properties whereas the kid is in a low or 0% federal tax bracket, then shopping for alternative Trade-Traded Funds (ETFs) to keep up the portfolio’s goal threat and return traits. The following, greater buy value will increase the funding’s price foundation and thereby reduces the quantity of realized acquire when the funding is bought later. Due to this technique, when the funds are ultimately withdrawn by the kid years later, they’ve much less taxes to pay and might maintain extra of their returns.
This launch is the newest instance of Wealthfront’s give attention to utilizing expertise to assist digital natives earn extra on their financial savings, borrow at decrease charges, and maintain extra of their returns. The Custodial Account provides one other good saving choice for households that enhances the corporate’s 529 Training Financial savings Plans in addition to its Joint and Belief Money and Investing Accounts. Going ahead, Wealthfront plans to proceed constructing merchandise that develop alongside shoppers via completely different life phases, together with increasing Wealthfront House Lending and enhancing goal-based saving options in its Money Account, the place money earns as much as 4.20% Annual Proportion Yield (APY) via present incentives. (The Money Account affords a 3.30% base APY which is supplied by program banks and is topic to vary).
About Wealthfront
Wealthfront is a tech-driven monetary platform serving to digital natives flip their financial savings into wealth. Since pioneering the automated investing class in 2011, the corporate has grown into a number one client fintech that helps shoppers obtain their monetary objectives with progressive saving, investing, borrowing, and lending merchandise. Wealthfront’s increasing suite of high-quality, low-cost choices helps digital natives earn extra on their financial savings, borrow at decrease charges, and maintain extra of their returns. To study extra and get began, go to www.wealthfront.com or obtain the Wealthfront app.
Contacts
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Investor Relations: ir@wealthfront.com
Disclosures:
Funding administration and advisory providers are supplied by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered funding adviser. Monetary planning instruments are supplied by Wealthfront Software program LLC (“Wealthfront Software program”).
The Money Account is obtainable by Wealthfront Brokerage LLC (“Wealthfront Brokerage”), Member of FINRA/SIPC. Neither Wealthfront Brokerage nor any of its associates are a financial institution, and the Money Account itself will not be a deposit account. The Annual Proportion Yield (“APY”) on money deposits as of 01/30/26, is consultant, requires no minimums, and should change at any time. References to the APY for the Wealthfront Money Account, together with any APY enhance, are to the APY paid by insured depository establishments that take part in our money sweep program (the “Program Banks”). Wealthfront Brokerage doesn’t pay curiosity. Wealthfront sweeps obtainable money balances to Program Banks the place they earn the variable APY.
The knowledge contained on this communication is supplied for common informational functions solely, and shouldn’t be construed as funding or tax recommendation. Nothing on this communication needs to be construed as a solicitation, provide, or suggestion, to purchase or promote any safety. Any hyperlinks supplied to different server websites are supplied as a matter of comfort and usually are not supposed to suggest that Wealthfront Advisers or its associates endorses, sponsors, promotes and/or is affiliated with the house owners of or members in these websites, or endorses any data contained on these websites, until expressly said in any other case.
Custodial accounts (UGMA/UTMA) come with important limitations. Contributions to a custodial account are irrevocable presents, which means as soon as property are moved into these accounts, they belong to the beneficiary and can’t be reclaimed by the donor for any purpose. You can also’t rename the beneficiary or use the property for one more particular person. Custodians have a fiduciary responsibility to make use of funds completely for the beneficiary’s profit. Authorized management of the property mechanically transfers to the beneficiary upon reaching the age of termination (sometimes 18 to 25, relying on the state), at which level they might use the funds for any objective, whatever the custodian’’s unique intent. These accounts may negatively impression monetary support eligibility as a result of the property are owned by the beneficiary. They’re weighted extra closely than parental property in monetary support formulation, which can considerably cut back eligibility for need-based monetary support.
From a tax perspective, Custodial accounts usually are not tax-deferred; they’re topic to “Kiddie Tax” on unearned revenue above sure thresholds. For the 2026 tax 12 months, the primary $1,350 of a kid’s unearned revenue is tax-free, the following $1,350 is taxed on the kid’s marginal fee, and any quantity over $2,700 is taxed on the dad and mom’ marginal fee. Contributions should adhere to federal present tax guidelines ($19,000 for people or $38,000 for a married couple in 2026). Any contributions over the present tax exclusion could also be topic to present tax. Have in mind, these figures can change. Wealthfront Advisers and associates don’t present authorized or tax recommendation and usually are not responsible for tax penalties of shopper transactions. Please seek the advice of a private tax advisor relating to your particular person scenario.
Tax-Achieve Harvesting is meant to assist a beneficiary make the most of the 0% federal long-term capital beneficial properties tax fee obtainable below the Kiddie Tax guidelines to doubtlessly cut back future federal tax legal responsibility. The effectiveness of this technique is fully depending on the beneficiary’s whole unearned revenue for the tax 12 months (this consists of any unearned revenue exterior of Wealthfront) and their present qualification below the Kiddie Tax guidelines (age, any earned revenue, and pupil standing). For the 2026 tax 12 months, the primary $1,350 of unearned revenue is tax free on the Federal degree because of the beneficiary’s normal deduction. Any quantity over would set off a Federal tax submitting requirement for the beneficiary (in some instances, it may be included on the dad and mom’ tax return). The subsequent $1,350 of unearned revenue could also be taxed on the beneficiary’s personal fee (this will even depend upon if it’s long-term capital beneficial properties and the way a lot different revenue the beneficiary might have). Any unearned revenue above $2,700 is taxed on the dad and mom’ marginal tax fee. The profit achieved could also be restricted or eradicated by a shopper’s particular tax scenario. Whereas the technique goals to appreciate beneficial properties federal-tax-free, state and native taxes should still apply. Wealthfront will harvest much less for Shoppers with beneficiaries residing in states with decrease unearned revenue thresholds to assist keep away from creating extra state tax submitting necessities. The transaction, which entails promoting and instantly reinvesting, might end in beneficial properties exceeding the shopper’s chosen harvesting restrict resulting from market volatility or late-arriving dividends. Wealthfront Advisers doesn’t present tax recommendation. Seek the advice of a tax skilled to your particular scenario.
The $100 Seed Funding promotion is for brand spanking new and present shoppers of Wealthfront Advisers and requires opening a brand new Custodial or 529 Account through the “Account Opening Window” (June 23, 2026, via 11:59pm EST on July 23, 2026) and assembly the minimal preliminary deposit by the “Funding Deadline” (11:59pm EST on August 23, 2026). Further Phrases and Situations apply. For full particulars, please evaluate the Custodial & 529 Incentive promotion at wealthfront.com/promo-terms.
The Wealthfront 529 School Financial savings Plan (the “Plan”) is run by the Board of Trustees of the School Financial savings Plans of Nevada (the “Board”), chaired by the Nevada State Treasurer. Ascensus Dealer Vendor Companies, Inc. (“ABD”) serves because the Program Supervisor. Wealthfront Advisers, an SEC-registered funding adviser, serves because the funding adviser to the Plan. Wealthfront Brokerage serves because the distributor and the underwriter of the Plan. Earlier than you make investments, think about whether or not your or the beneficiary’s dwelling state affords any state tax or different state advantages corresponding to monetary support, scholarship funds, and safety from collectors which can be solely obtainable for investments in that state’s certified tuition program.
You additionally ought to seek the advice of your monetary, tax, or different advisor to study extra about how state-based advantages (or any limitations) would apply to your particular circumstances. You additionally might want to instantly contact your own home state’s 529 plan(s), or every other 529 plan, to study extra about these plans’ options, advantages and limitations. Understand that state-based advantages needs to be one among many appropriately weighted elements to be thought-about when investing determination. Earnings on nonqualified withdrawals are topic to federal revenue tax and could also be topic to a ten p.c federal tax penalty, in addition to state and native revenue taxes. The supply of tax and different advantages could also be contingent on assembly different necessities.
For extra details about the Plan, obtain the Plan Description and Participation Settlement or request one by calling 844-995-8437 or emailing assist@wealthfront.com. Funding aims, dangers, prices, bills, and different essential data are included within the Plan Description and Participation Settlement; please learn and think about it rigorously earlier than investing. An funding within the Plan will not be insured or assured by the FDIC or any federal or state authorities or company. You might lose all or portion of your funding.
Part 530A Accounts (Trump Accounts) usually are not obtainable via Wealthfront. They’re supplied by the US Division of the Treasury, via its designated monetary brokers. These accounts contain monetary dangers and structural limitations. For extra data, please go to trumpaccounts.gov.
Wealthfront Advisers, Wealthfront Brokerage, and Wealthfront Software program are wholly-owned subsidiaries of Wealthfront Company.
© 2026 Wealthfront Company. All rights reserved.
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