Apr 16

I understand the UTMA regulations for my state (Maryland), and the age of majority for equities is 21 for custodial and individual accounts. Do these regulations apply in the same manner to IRAs? What other restrictions would minors have in an IRA or Roth IRA, as limited by UTMA, brokers/firms, or other unforeseen limitations?

3 comments so far...

  • Kristen Banker Said on April 16th, 2010 at 5:43 pm:

    In pa, any individual over the age of 18 is eligible for an IRA account. I believe other states (MD) have similar age restrictions, so a UTMA IRA account is out of the question.

    Brokerage accounts are a different story, and I have seen stocks & mutual funds with a UTMA designation.

  • jueyanz Said on April 16th, 2010 at 5:59 pm:

    Minors can’t open IRAs.

  • Jerry Said on December 4th, 2010 at 4:39 pm:

    Parents of minors can open IRAs for the minor if the minor has taxable income for the year. The account can be transferred to the person for whom it was originally opened (the minor) once the person reaches the age of majority (18 or 21 depending on the state). Check out Charles Schwab, Vanguard, and certain other brokerages and mutual funds that offer this option. Schwab has a minimum investment of $100 as of this writing.

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