Joint accounts provide an opportunity to contribute to shared, taxable assets. There is no limit to the amount that can be purchased and withdrawals can be made at any time. Earnings, gains and redemptions are all taxable events recorded in the year in which they occur.
Joint accounts can be owned by two or more different people and are popular among married couples. As with any ownership held jointly, the owners can make most decisions together. This includes the ability to pick any type of investment option based on your risk tolerance and investment goals.
This type of taxable account is a form of joint ownership between two or more individuals, each of whom has an undivided interest. Owners share the assets completely. This doesn't necessarily mean the account is funded equally by each individual. Upon the death of one owner, the entire account passes to the survivor(s).
This type of account has many of the same benefits and features of other taxable accounts. The legal term for this type of account is called Joint Tenants with Rights of Survivorship (JT WROS) and it is generally the most widely used account type for multiple owners, including spouses.
Community Property (COMM PROP) is another type of account with more than one owner, but it’s only found in certain states. The ownership is between spouses; all property acquired during the marriage is generally presumed to be community property, unless otherwise designated. In the event of death, the decedent’s portion passes to their estate, rather than directly to the surviving spouse.
Tenants in Common (TEN COM) is a type of joint account that consists of two or more individuals or entities, each of whom has a divisible interest. This means they own equal portions of the account. Sometimes this is split two, three or four ways. Upon the death of one owner, that portion of the account passes to their estate.
For any joint account, all owners must be at an age of majority for their state of residency.
Is a Joint Account right for you?
A joint account gives the owners the flexibility to make all the investment and other important decisions about when and how to use the proceeds of the account.
Tax Features and Investments
Withdrawals and Helpful Information
Open a Joint Account
Use the College Planner to assess tuition and fees, room and board and other expenses for a variety of colleges and universities across the U.S.