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Author: thirdgrp Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Grandma's Roth IRA for Kids Date: 3/13/2000 12:51 AM
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**At another web site I happened upon what seems to be a feasible way to set aside long-term money for the kids and let it build tax-free. I can't see any catch but would like to know what fools here think of the idea.

Grandma lives with us and takes care of the kids before and after school. Grandma is paid for this service, hence she has earned income, and wants to invest the money in a Roth IRA naming the kids as beneficiaries.

Initially, I was surprised to think that someone in their 80's could establish Roth IRA but find nothing prohibiting it.

Anyone see any gotcha's with this arrangement? Sure seems like a good idea to me?


Thanks in advance,
Bill

** Lots of problems, are you witholding social security, medicare, state tax, etc.... She is your employee now, etc... Ugly...
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