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|Subject: Re: 16 Year old and an IRA||Date: 10/20/2000 11:10 PM|
|Author: RicsAst||Number: 25624 of 78012|
My broker says they can't have a minor as the owner of an equity account
Hi caisprices, I guess the easy answer is that you need to get a different Broker.
I am sure that there are many brokers to choose from. I had not problem with mine. I work with USAA (https://www.usaa.com/). Although they cater to the military for their banking and insurance, their brokerage house is open to the public. They are pricey ($24 per online trade) but I don't trade frequently to make it a big issue…it makes up for the good service.
Anyway, I asked them about setting up IRAs for my kids and they had no problem. The only issue was that I had to sign an account application addendum for establishing of the IRA account by a parent for the benefit of a minor child. This document indemnifies my brokerage company (USAA Investment Management Company) as the custodian and then the classic legalese about suites and liabilities (i.e. they hold you accountable for abiding by the rules). I am sure each brokerage house will have a similar letter to sign.
There may better brokerage houses out there that may cater to your individual needs….shop around and ask specifically about Roth IRAs for your kids.
Hope this helps,
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