I am trying to establish a self-directed Roth IRA for my son; however, I do not want him to have access to the money when he reaches 18.
Can I create a self-directed Roth IRA and then place the Roth IRA into some sort of trust?
While I agree, the earnings are based on their income. If I invest in a company that produces significant dividends, I am uneasy that he will have access to potentially a substantial amount of money by the time he reaches 18/21/15.Is there any device that will allow me to control his access?
A trust that establishes this control cannot own an IRA account, it can only be the beneficiary. Usually, a child’s IRA balance limited by the child’s earned income contributions does not generate large enough gains to be very significant by the time the child reaches majority. Most families accept the risk of the child raiding the IRA, but in extreme cases an IRA might not be the best account choice.
Permalink Submitted by William Tuttle on Thu, 2019-05-02 16:33
Check your state UTMA or UGMA (only SC) laws. Only two KY and SD require an 18 age of termination. The remaining 48 states (+ DC) allow at least to age 21 and eight (8) states allow to age 25. A well raised child is better than direct control of their money. It is after all, their money based on their earned income.