IRA Age 13 limitation?
Grandmother passed away and named her 6 grandchildren (ages 6-15) as beneficiaries on her IRA. Her IRA is at company X. We successfully opened beneficiary-controlled IRA’s for each of the 6 grandchildren at company Y with no problems. Upon submitting a death claim form to company X to issue 6 checks to company Y as rollovers to beneficiary controlled IRAs, company X is now saying that kids can’t have IRAs until they turn 13. I’ve never heard of this.
1) Is there an age 13 limit for IRAs?
2) If so does the limit also apply to beneficiary controlled IRAs or just IRAs you contribute to?
3) Again company Y opened the IRAs just fine, so I wouldn’t think company X would even care because they wouldn’t be the custodian of the beneficiary controlled IRAs for beneficiaries under age 13, company Y would.
Please provide your thoughts — thanks.
Permalink Submitted by mk foss on Mon, 2009-09-21 21:53
There is no minimum age for IRAs. The company may have an internal rule that they will not open a traditional IRA for someone under age 13 but there is not an IRS requirement. To open the traditional IRA, you must have earned income. Actors and models under age 13 qualify and beneficiaries would certainly qualify.
You need to talk to someone higher up in the organization.