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Do I have to live in the state of Washington to open an account?

No, all U.S. persons (citizens and legal residents) over the age of majority* with a Social Security Number or Taxpayer Identification Number can open an account for either themselves or for a beneficiary. 

*The age of majority is based on your state of residence. For most states it is 18, with the following exceptions: Alabama (19), Mississippi (21), Nebraska (19).