Although Fidelity Management Trust Company (FMTC), the custodian of my IRA, is (and its successor custodian may be) a bank, I recognize that neither Fidelity Distributors Company LLC nor any investment fund in which this IRA can be invested are banks and that mutual fund shares are NOT (i) deposits or obligations of, or The custodian maintains control of the child's Roth IRA, including decisions on contributions, investments and distributions. In addition, the statements are sent to the custodian. However, the child is still the effective account holder and the funds in the account must be used for the child's benefit. When the minor reaches a certain required age, usually 18 or 21 in most states, the assets must be transferred to a new account in their name.
Before you begin, you'll need the details of your current IRA accounts, including the name and account number. Convincing a child to hand over their hard-earned money to invest in a Roth IRA can be difficult, but remember that as long as the child has earned income from work to be able to receive Roth IRA contributions, it doesn't matter where the contributions come from. In addition, at the time of retirement, the account owner must have had a Roth IRA open for at least 5 years, counting from the start of the first calendar year in which a Roth IRA was opened. Only through a self-directed IRA with checkbook control can you invest in alternative investments, such as real estate, private placements, tax liens, precious metals, cryptocurrencies, and just about anything else you can think of.
If you're interested in transferring an existing IRA and it's still in the hands of another trustee or custodian, then you're in the right place. Compare savings options for a child Understand the differences between a 529 account with custody, a Roth IRA for children, a youth account, and an ABLE account. Next, if you don't already have a Fidelity IRA, you'll need to open one. This way, you can transfer money from your current IRA to this Fidelity IRA.
You can quickly and easily transfer online or over the phone to a Fidelity IRA with a direct transfer from trustee to trustee. If your former IRA custodian sends you a check, you can deposit the money directly into your Fidelity IRA. One way to do this is to establish a Roth IRA with custody, or what Fidelity is known as a Roth IRA for children and, more generally, as a Roth IRA for minors. For example, a Roth IRA allows the account owner to withdraw 100% of what they have contributed at any time and for any reason, without taxes or penalties.
There are countless opportunities beyond stocks, bonds and mutual funds, and a self-directed IRA with checkbook control opens the door to investing in alternative assets that belong to your area of expertise, without you making the decision. Be sure to exercise due diligence on this and other important aspects of self-directed IRA companies when you're in the process of choosing one for yourself. We'll contact your current IRA depositary to release the assets, and then deposit them directly into the Fidelity account of your choice. Broad Financial not only specializes in creating an IRA LLC, but it has a wealth of knowledge about all the ins and outs that you can use as a resource whenever you need help directing your retirement investments on your own.