Submitted By: Marie
Answered: December 2, 2014 8:30 am

Can a minor child inherit a Roth IRA?

Yes, but you need to consider how to make the child a beneficiary. Being a minor means the child can’t inherit the account outright; you’ll need to name a custodian who manages the account until the child reaches the age of majority in your state. Alternatively, you can leave the account to a trust you set up, with the child as the trust’s beneficiary. It’s wise to speak with a knowledgeable advisor to determine the better way for you.

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Tax Glossary

Exemption

A fixed deduction allowed to every taxpayer, except those who may be claimed as a dependent by another person. Extra exemption deductions are allowed for a spouse on a joint return and for each qualifying dependent. A deduction of $3,400 is allowed for each exemption claimed on 2007 returns, but the deduction is phased out for certain high income individuals.

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