No. of Recommendations: 0
My understanding is that if I contribute to a Roth IRA then I have to start taking distributions in my seventies, no?

No, at least not under current law. That can certainly change over 2-3 generations.

To accomplish your goal, you would likely need an irrevocable trust. You would likely need to higher a third party administrator to ensure the trust rules are followed.

A Roth could come close to accomplishing your goal but there are some tax consequences and always the possibility to a change in the tax law that could completely invalidate your goal so I would look to the trust.

As an alternative, there are scholarship services that allow you to create and fund your own scholarship with your own rules so you could create a legacy fund via those services (at a fee) and establish rules by which they invest the money and by which they pay it out. In my experience, such services typically work with a specific universtity but I assume that there are some that do not have such restrictions.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.