Financial Information
Can Roth IRA be transferred to child?
Question : Can Roth IRA be transferred to child?
According to the Compound Interest Calculator, my ROTH IRA account will have a total balance of $ 377,067 in 28 years from now assuming an average 8% interest rate over the 28 years.
When my daughter and son are 28 and 32 will I be able to transfer my Roth IRA into their name without any penalty? Or do I need to withdraw the money (which is tax free) and just give it to them to open their own ROTH IRA?
What is the best way to go about it without losing any money?
Also, what is the best method to make sure that the account averages at least 8% interest over the 28 years?
My current Internation Investments are at 11%
roth ira calculator
Best answer:
Answer by jeff410
No. You cant give an IRA to someone else. They can inherit when you die. But they cant contribute to it. Only a spouse can take an inherited IRA as their own and contribute to it.
you can’t transfer the $ . I would suggest that you start a UTMA for your son and/or daughter. You can invest the money for them, pay at their tax rate (until they are 18). at that point you will have to transfer it to an IRA in their name.