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Family Life / Family Fool
|Subject: Re: account for a minor||Date: 12/1/2011 3:00 PM|
|Author: JAFO31||Number: 6767 of 6773|
BetterThanGold: "I'm planning to set up a brokerage for my daughter and cant seem to decide what kind of account to set up. what is best coverdell account, a 529 plan, a traditional IRA or a Roth IRA, UTMA or UGMA custodial account?"
reallyalldone: <<<It depends on your purpose and your financial situation now and in the future.>>>
In addition to what rad wrote, your minor cannot open a traditioal IRA or Roth IRA unless the minor has earned income.
Coverdell accounts and 529 plans are intended to used primarily to fund education.
Whose money is it now? Why do you want to open it in your daughter's name? If it is your money, are you making a gift? In what do you want to invest? etc.
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