NE SD | junk fun - 3/14/2021 14:07
I believe the child has to have earned income to set up an IRA, otherwise a Roth is a great idea. I was going to suggest contributing to the PARENT'S Roth with it earmarked for the child's college, home down payment, etc. The advantage is that anything in the child's name will count 100% against financial aid, whereas the parent's retirement might not be included in financial aid calculations.
Under 18 has to be a custodial Roth, and the child has to have earned income. But I think your idea is a good one if the parent doesn’t plan to contribute to their own as you can’t double up. But of course you get into gifting and all that, dependent on the amount I suppose. |
grandchild savings acct
