Bank Trust Custodial Account

AAA

DEFINITION of 'Bank Trust Custodial Account'

A type of Individual Retirement Account (IRA) allowed by the Employee Retirement Income Security Act of 1974 (ERISA) in which contributions are paid into the bank's interest-bearing financial instruments or a self-directed account. The difference between a self directed account and the bank's interest bearing financial instrument is that the investor is in charge of investment decisions. Self-directed accounts are usually set up by a brokerage and the investor is charged an amount above trading costs.

INVESTOPEDIA EXPLAINS 'Bank Trust Custodial Account'

ERISA is federal legislation enacted to ensure that pension/retirement plans of employers are fair and secure. It is the law that established rules and regulations to govern private pension plans, including vesting requirements, funding mechanisms, and general plan design and descriptions.

RELATED TERMS
  1. Vesting

    The process by which employees accrue non-forfeitable rights ...
  2. Assets Under Administration - AUA

    Financial properties that are managed by a bank or financial ...
  3. Natural Guardian

    A child's parent. In divorce situations, the parent with custody ...
  4. Guardian IRA

    An IRA held in the name of a legal guardian or parent on behalf ...
  5. Traditional IRA

    An individual retirement account (IRA) that allows individuals ...
  6. Elective-Deferral Contribution

    A contribution arrangement of an employer-sponsored retirement ...
Related Articles
  1. Budgeting

    Managing Income During Retirement

    Learn some sensible strategies for making your hard-earned savings last for as long as you need them.
  2. Taxes

    Avoiding "Prohibited Transactions" In Your IRA

    To avoid jeopardizing your IRA assets, find out what transactions are prohibited.
  3. Taxes

    Avoiding IRS Penalties On Your IRA Assets

    The best way to avoid additional charges and taxes is to know which transactions have expensive consequences.
  4. Taxes

    Recharacterizing Your IRA Contribution Or Roth Conversion

    Learn why you might make such a transaction and find out how to calculate how it will affect you.
  5. You need to be patient, diligent and perseverant to be successful at investing, but more importantly, you need to start early.
    Investing Basics

    Why You Should Start Investing Early?

    You need to be patient, diligent and perseverant to be successful at investing, but more importantly, you need to start early.
  6. Many of us fantasize about winning a big lottery jackpot. Let’s say that actually happened? What would you do with the money? How would you manage it?
    Professionals

    Tips For Managing A Cash Windfall

    Many of us fantasize about winning a big lottery jackpot. Let’s say that actually happened? What would you do with the money? How would you manage it?
  7. Retirement

    Planning Ahead for 2015's Tax Law Changes

    Increased 401(k) limits can help savers put away more money for retirement in 2015—but some new restrictions are coming for IRAs.
  8. Professionals

    Ways To Cut 401(k) Expenses

    You might need to be vigilant and a bit creative to lower overall 401(k) expenses, but the payoff can be big. Here's a quick guide.
  9. Compelled to rollover your retirement plan? Beware of bad advice, unsuitable options and 'toxic' tactics.
    Professionals

    Tread Carefully With Retirement Plan Rollovers

    Compelled to rollover your retirement plan? Beware of bad advice, unsuitable options and 'toxic' tactics.
  10. For many retirees with IRAs and other retirement plans, the end of the year means taking a minimum distribution. Here's what you need to know.
    Professionals

    Required Minimum Distributions: A Reminder

    For many retirees with IRAs and other retirement plans, the end of the year means taking a minimum distribution. Here's what you need to know.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center