Skip to main content
No. of Recommendations: 0
I have looked a little but have not found a place for a 16 year to open an IRA.
She worked this summer and I want to help her with getting started (like up to her earned income) in an IRA.
In other words I will give her a gift of $600 and she will decide to put the $600 she earned into an IRA.

My broker says they can't have a minor as the owner of an equity account.

Any suggestions / ideas welcome
Print the post Back To Top
No. of Recommendations: 0
My broker says they can't have a minor as the owner of an equity account

===================================================

Hi caisprices, I guess the easy answer is that you need to get a different Broker.

I am sure that there are many brokers to choose from. I had not problem with mine. I work with USAA (https://www.usaa.com/). Although they cater to the military for their banking and insurance, their brokerage house is open to the public. They are pricey ($24 per online trade) but I don't trade frequently to make it a big issue…it makes up for the good service.

Anyway, I asked them about setting up IRAs for my kids and they had no problem. The only issue was that I had to sign an account application addendum for establishing of the IRA account by a parent for the benefit of a minor child. This document indemnifies my brokerage company (USAA Investment Management Company) as the custodian and then the classic legalese about suites and liabilities (i.e. they hold you accountable for abiding by the rules). I am sure each brokerage house will have a similar letter to sign.

There may better brokerage houses out there that may cater to your individual needs….shop around and ask specifically about Roth IRAs for your kids.

Hope this helps,

Rics
Print the post Back To Top
No. of Recommendations: 0
I have looked a little but have not found a place for a 16 year to open an IRA.
She worked this summer and I want to help her with getting started (like up to her earned income) in an IRA.
In other words I will give her a gift of $600 and she will decide to put the $600 she earned into an IRA.

My broker says they can't have a minor as the owner of an equity account.

Any suggestions / ideas welcome


This is a very good idea.

I know it can be done from post at the fool. Vanguard Mutual fund maybe one place to look. Try all the large mutual funds on the net. It can be done.
Print the post Back To Top
No. of Recommendations: 0
I believe I did this about nine years ago with Pax when my daughter was a young teenager.
Print the post Back To Top
No. of Recommendations: 0
When our daughter was 16 and he started working we set an IRA (Custodial) up for her with American Century. As parents we had to sign the agreement. Last year when she turned 18 American Century automatically sent us new applications to establish an IRA for our Daughter in her name only. They know what to do.
Print the post Back To Top