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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: infant income IRA? Date: 4/6/2011 1:21 PM
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To recap, child is 1 years old, earned $300 in 2010 (modeling). Currently in a savings account at a local bank earning practically nothing.

I had previously got some recommendations to open a Roth IRA for him, which I tried to do. Unfortunately with only $300 it didn't meet the account minimums of anywhere I tried.


I'm surprised that the bank which has the account currently won't let you retitle it as a Roth IRA.

So I am trying to figure out what is the best thing to do with it now.
Do I just leave it in the savings account and let him spend it at some point when he gets older?
Is there another way to get it invested for some long term growth?
Can I combine it with some money of my own and invest it that way for him?


You can combine it with money that you give him (gift) and invest it in via a UGMA/UTMA account, but the money will be his when he gets older and you will have no legal control over it when he reaches the age of majority.

My goals are to get some growth. I also would like to avoid having to deal with filing taxes for him.

On a $300 investment you don't have to worry about filing for a few years. <vbg> What the future will bring is uncertain.

Ira
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