Guest dells Posted January 4, 1999 Posted January 4, 1999 A major mutual fund company will let me open a Roth IRA for my 17 yr old daughter (most interpret the eligibility as one must be of legal age). She has eligible 1998 W-2 earnings. Is it beneficial to use my after-tax money to open a Roth IRA account in her name? After all, if she were open it with her money, she would virtually pay no income tax on the initial amount (since the earnings are less than the standard deduction of $4250). She does not currently have the funds, but I don't want her to miss this opportunity to bypass all future taxes on this investment vehicle.
Guest lars Posted January 11, 1999 Posted January 11, 1999 im looking into starting a new Roth and need any suggestions as to what kind to get or where to get one or any other important info i should know thanks ------------------ send emails to: funkymonkey@hempseed.com
Guest John R Grossmann Posted January 12, 1999 Posted January 12, 1999 Not every brokerage or mutual fund group allows a minor child to have a Roth IRA. I do know that Schwab does. A parent or other relative can "fund" the Roth, which falls below the $10k gift level. Another good idea is to help younger relatives pay the tax on a Roth conversion. Do the math. With so many years of compounding, both of these ideas will produce spectacular wealth for the lucky kid. Grandparents can incourage investing and shift $ to a younger generation in a positive way.
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