This is not the case with a custodial account. The other disadvantage is that contributions are capped every year. The disadvantage is that the minor has to have earned income equal to or greater than the amount of contributions. The advantage is that the IRA is tax deductible.
Aptly named the Minor IRA, this account is an alternative to the traditional custodial account. TD Ameritrade also has an Individual Retirement Account for juveniles. Other Brokerage Accounts for Persons Under Age 18 $0 commissions + transfer fee reimbursement. Just submit the required details on Ameritrade's online application (this will include information on both the custodian and the minor) and the new account will be open in no time.
Here, you'll see a link for UGMA/UTMA accounts. At the top of the list is a group of the most popular account types. Click on the link and you'll get TD's list of accounts. Just head over to the broker's homepage and find the Open New Account link. Speaking of opening the account, TD Ameritrade has a really easy online form for this. The minor can't open the account by himself, for example. But that adult definitely has to be on the account. It could be the minor's brother or sister, and that would satisfy the legal requirement of having an adult on the account. In all cases, the assets have to eventually be turned over to the minor, and the funds don't have to be used to pay for education, either.īut there has to be a custodian/guardian in the picture who is at least 18 years old. In some states, it's possible to choose the exact age. The age at which this occurs varies by state. Like any beneficiary, the minor on a custodial account will eventually receive the account's assets. TD Ameritrade offers the custodial account. That is opened by an adult who serves as the custodian (hence the name), while a minor (who isĪlso listed on the account) serves as the beneficiary. The custodial account is the brokerage industry's answer to this situation. $150 cash bonus when you transfer funds into TradeStation.
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