The IRS only has one stipulation for an individual to contribute to an IRA: you need to have earned income. That doesn’t mean money received as financial gifts for babies and kids, nor from money you earn from chores, mind you.
When a minor has an investment account, it is usually in the name of the child’s parents or other guardian. These types of accounts go by the name “custodial account” or guardian accounts because the custodian makes decisions on behalf of the beneficiary. In this case, a minor child.
There is no black and white when it comes to “the best account,” but there are some considerations that can help you make a decision for what will work best for your individual financial situation.- Fees.- Account minimums.- Investment options.- Investment support.
The company has long sought to lower investing costs for retail investors by offering market index investments for increasingly affordable rates.
Further, they want to make investing more accessible to the masses, including through a custodial Roth IRA.