How do I transfer a minor investment account into a Roth IRA?
Moving money from a child's minor account into a retirement fund usually requires liquidating the assets and reinvesting the cash proceeds once the child starts earning income. This process also raises concerns about managing ownership restrictions before the child legally gains full control of the account at age 21.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1Selling the current investments, transferring the cash to a checking account, and contributing it to a retirement account
- 2Contributing exclusively from the child's new paycheck earnings rather than transferring old account balances
- 3Asking the child to willingly return the money after receiving it
- 4Reimbursing oneself from the custodial account for past expenses that benefited the child
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“Is there anything specific I should do or is it just sell, transfer to her new checking and invest in the Roth IRA?”source ↗
“So here’s my question: what are my options to basically reverse the fact that this money is going to be turned over to him the day he turns 21, per the account policy?”source ↗
Where this came up
People with this problem also raised
- 2Transferring physical custodial stock after custodian dies and name change
- 4How to avoid high fees on an inherited Edward Jones account
- 9When is the best time to do a retirement account rollover?
- 7What do I do with an inherited IRA?
- 4How to switch from a traditional big bank to a better checking account
- 6How to find a simple all-in-one bank and brokerage