I think the main issue with IRA/ROTH IRA is that DD would be able to do something foolish, as opposed to Foolish, once she hit 18.With 529, it must go to educational expenses.I have also been doing some digging at my companies annual benefits fair... NY State 529 had a booth.They explained it much like some of the posts here. By moving the money from her savings account (I am custodian) to the 529 I have set up, it would essentially by her giving money to me. They (like the previous post) suggested I talk to a tax attorney for actual legal advice. What I came away from that discussion was that it "could" be consider her 'gifting' the money to me--though it would be put into an account for her benefit.OTOH, if I was able to set up a 529 in HER name as owner, with me as custodian, financial aid formulas would penalize her for having more assets. This is where funding a retirement account would be preferable...Thanks for the continuing conversation here! This is both fascinating and infuriating stuff :-)
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