[WSBAPT] SEP-IRA for kids? Pre-Tax?

[John Creahan]

Yes, an account for a minor would be established as a custodial account, subject to UTTM. Schwab’s Custodial IRA Account application<http://www.schwab.com/public/file/P-221471/APP13589-15_WB.pdf>, for instance, specifically references state law and requires the custodian to indicate the termination age.

John Creahan
206-621-5848
www.cairn-law.com<http://www.cairn-law.com/>


From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of David Moe
Sent: Thursday, March 26, 2015 3:23 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] SEP-IRA for kids? Pre-Tax?

Thanks for the great topic/question.  Please reply to list.
Assuming other requirements (earned income, etc.) are met, can the IRA account be also in the forms of an RCW 11.114 Custodial/UTTM account?  An IRA in the sole name of a minor lacking legal capacity seems problematic.  Or would the account holder have to be an IRA Beneficiary Trust?
Dave Moe


From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Victor R
Sent: Thursday, March 26, 2015 3:04 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] SEP-IRA for kids? Pre-Tax?

what i was thinking is if it mattered whether they were a minor or not.
also, if the sep-ira limits would be the same for them, too?

On Thu, Mar 26, 2015 at 2:38 PM, John Creahan <john at cairn-law.com<mailto:john at cairn-law.com>> wrote:
If someone does not have any earned income, he or she cannot use pre-tax dollars to fund an IRA (except for certain non-working spouses), so I don’t see how a company cannot establish an IRA for an employee’s child. If the child is also an employee, she could, of course, participate if she met the eligibility requirements.
I suppose some business owners might “hire” their kids and fund the child’s IRA with salary, but the SEP rules limit the benefits of this approach.
A child who earns wages – even working part time – is eligible to set up a traditional or Roth IRA, which, in most cases, would be funded by parents.
I don’t know if this answers your question, but feel free to follow up.
John


John Creahan
john at cairn-law.com<mailto:john at cairn-law.com>
1325 4th Ave., Suite 940
Seattle, WA 98101
206-621-5848
www.cairn-law.com<http://www.cairn-law.com/>
[cid:image001.png at 01CE636C.3EB992D0]

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>] On Behalf Of Victor R
Sent: Thursday, March 26, 2015 2:09 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] SEP-IRA for kids? Pre-Tax?

Members:

Any of you ever hear of this type of investment vehicles for employees for their kids?

... or even something similar?




--

Victor Ro, Esq.
THE RO FIRM, P.S.C.
A Professional Services Corporation
5400 Carillon Point
Bldg. 5000, 4th Floor
Kirkland, WA 98033
Tel:  (206) 319-7072
Fax: (206) 319-4470
This communication is CONFIDENTIAL - ATTORNEY WORK PRODUCT - PRIVILEGED.  You are responsible for any damages arising in any way from its use.  Do not construe this correspondence or contents, thereof, as legal advice or as an engagement between an attorney and client.  If you received this communication in error, delete it immediately and permanently from all existing files.  NOTICE and PROHIBITION:  Do not copy, transmit, retransmit, distribute, or disclose this information contained, herein.

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--

Victor Ro, Esq.
THE RO FIRM, P.S.C.
A Professional Services Corporation
5400 Carillon Point
Bldg. 5000, 4th Floor
Kirkland, WA 98033
Tel:  (206) 319-7072
Fax: (206) 319-4470
This communication is CONFIDENTIAL - ATTORNEY WORK PRODUCT - PRIVILEGED.  You are responsible for any damages arising in any way from its use.  Do not construe this correspondence or contents, thereof, as legal advice or as an engagement between an attorney and client.  If you received this communication in error, delete it immediately and permanently from all existing files.  NOTICE and PROHIBITION:  Do not copy, transmit, retransmit, distribute, or disclose this information contained, herein.
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