Withdraw penalty-free¹ any time for:
Tuition |
Sports equipment |
Art classes |
Tutoring |
Band uniforms |
Any child-related expense |
Prior to the age of majority, the money is available for anything that directly benefits the minor. Examples include tuition, tutoring, extracurriculars, or other child-related expenses.
UGMA accounts are irrevocable, meaning once money is contributed, it belongs to your child and must be used for their benefit. There are a few important rules to keep in mind:
The money must be used only for your child — not for yourself or another child
It can’t replace basic support (like food, housing, or essential clothing)
Expenses should clearly benefit your child — not be shared or indirect
Keep records of how the money is used, in case you need to show how funds were spent
Once your child reaches the age of majority, they can use the money for any purpose.
Want to learn more? Check out these articles:
¹ Custodian can make withdrawals and use the funds for any purpose that directly benefits the account holder (the minor). Once the account transfers to the account holder, they may use funds for any purpose.