I had this board as a "Favorite" for several months and then I deleted it from my folder when I saw zilch in activity. Glad to see there are Fools in PA. I was beginning to think I was alone.A question to my fellow Pennsylvanians:Can the under 18 crowd have IRAs in this state? I was told by a CFP that I could start IRAs for my boys; however, a gentleman that I work with said his CFP tells him a different story. According to the second CFP, PA prohibits children from having IRAs. Which CFP knows his stuff?Any and all comments welcomed.julean
<Can the under 18 crowd have IRAs in this state? I was told by a CFP that I could start IRAs for my boys; however, a gentleman that I work with said his CFP tells him a different story. According to the second CFP, PA prohibits children from having IRAs. Which CFP knows his stuff?>Julean:Welcome to Pa Fooldom. I've been following the motley fool for awhile now ,but only recently have been looking at the interactive boards.My kids are in my employ after school and weekends and receive taxable income for such. For several years they have had regular IRAs fully funded. The kids have them set up as self-directed accounts at a regional brokerage house (before I was a Fool!.... ); now I would probably check out Waterhouse Secuities for online investing for our IRAs. I'm looking to do the same for their educationIRAs.If you're looking for S&P investing ...check out IRA through Vanguard index fund. As far as I'm aware, nobody ( i.e. CPA or broker ) has indicated that IRA for kids in Pa are illegal.Good luck and keep on Fooling around!!
I concur with CasuaFool, age is irrelevant to IRA's. The key ingredients are:1. Must Have Taxable income2a. Not covered by a company pension2b. If you are covered by a company pension you must have an adjusted gross income below the cutoff. You maximum tax deduction is gradually reduced as you approach the cutoff (30K for single in 97 I think)As contracts with minors have special rules it may be hard to find a place to start the account, but as competative as financial services have gotten it shouldn't be too problematic. Good luck with it. Max
IRAs are fedreal law. Generally, Federal law preempts state law.
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