how to open a roth ira in granchildren's names--low fee, min. contributions, etc.?

[Guest waylons]

I'm interested in opening roth iras for each of seven grandchildren with approx. $100 deposits for special occasions and/or achievements. I need low or no annual fee accounts with low or no minimum contributions.

[Guest PensionAdministrator]

It is my understanding that the owner of a Roth IRA must have sufficient income during the year that the contribution is made to cover the contribution deposit. Are your Grandchildren old enough to work?

[Guest waylons]

Three work and four are under age and don't have an income. What about a regular ira for those under age?

[Mary Kay Foss]

Earned income is necessary for all IRA contributions, traditional or Roth.

In various cases, the IRS has ruled that children can have earned income if they work in a parent's business. I believe one of the examples was a 10 year old emptying waste baskets and sweeping floors. If a child can really work and get paid for it, a Roth contribution can be made.