My wifes grandfather tried to open my daughter a roth IRA, he couldn't because the child has to prove earnings to be eligible..or something of that sort..My daughter is 8 months old with no job.

Either way, he gave me the chunk of money and told me to invest the way I see fit- for her.

What kind of plans are out there for Kids? Or would I be best to start an account in my name, make contributions and eventually write it off to her?

Also, another question. I just left an employer that had a Simple IRA plan. My new employer will be doing a full payed pension and annuity. What are good options for my simple IRA. Could I roll it into a Roth without facing taxes at this time?. Other opions are welcome....and I'm sure plenty of opinions will come

I'm fairly green to this kind of stuff.

For the chunk of money, look into a 529 plan if you're looking to invest for college.

For the transfer, you would have to pay taxes if the simple plan was pre tax, rolling it into a Roth.

My in-laws had both savings bonds and Edward D. Jones accounts for each of the grandchildren (they received either them when they graduated high school, either to cash out or to keep and control on their own). I believe my in-laws were on them as the primary and then each child's name was also on there.

You might want to talk to a financial planner and see what he/she recommends.

You can open up a savings account with the gifted money and buy CD's. Not much return but that's about as safe a bet on keeping the money that I know. If you want more return with the good possibility of loss from time to time find you a good financial group, write them a check and tell them to have at it and don't look at it.

Kids can have an ira. I have a business and through that I pay mine to maybe put a stamp on envelopes or something simple. Age specific tasks for 6, 2, and 1 year old.

If you’d rather not go the loophole route then a mutual fund is good too.
The 529 is good and will save you some tax money. I’d recommend doing a little in one of these either way you go.
Just remember that money is for school.
If you’re wanting something more liquid go the Roth IRA or mutual fund route. Using banks or credit unions to try and grow money isn’t very productive. Use a good mutual fund company. New York life is good.

I just rolled my tsp into my roth ira. From my understanding no tax penalty since I didn't touch it. A lot of variables with that bs though.

Just let the grandfather to set it up and make your daughter sole beneficiary.

Don't have kids so I've never looked into it too closely.
I know there are custodial IRAs but not sure on specifics for them.

Please do not place the money in a savings account earning nothingness interest and losing value to inflation. Buy right and hold tight.

Just get your kid a standard custodial brokerage account. By them some decent ETF's that put the dividends into DRIP.

Good advice but if it was me I’d still put some in a 529 college plan, let the funds grow till she’s out of college and she’ll have a nice nest egg to start with.

“College is a waste of time and money”
-a lot of people on here





529 for the college plan is the correct answer

I think Roths can be pulled out for educational uses and grow tax free. Always use tax advantages.

I didn't think you could role your traditional TSP into a Roth without paying a penalty. If you can do that then you would pay no taxes on either end. If that is possible I need to do that.

Kids can have a Roth they just have to earn the money by doing work of some sort cleaning house, cutting grass etc etc. and I would make a receipt where I paid them and keep it.

Yep, if you want to just pick a fund and not actively trade with the money set up a 529. You can deduct contributions from your state taxes but not federal. Once set up, they (Grandparents) can directly contribute and get the tax deduction.

So the earned money doesn’t have to be proved with a w2 type of document?

I think the last paragraph in this link I am posting will help you.

https://www.thebalance.com/open-roth-ira-kids-358031

2 things: 1) OP can't do a Roth in the child's name. You can only contribute qualified income into a Roth. The child has no income. 2) In Alabama you can double dip from a tax standpoint with a 529. Contributions are state deductible while withdrawals for school are both state and federal tax free.

If the money is for college, 529 is the right answer from a tax standpoint.

If the child earned income then yes a Roth can be used. It all depends on the op’s situation.

Jbatey to answer your question.. you’re not required to file if you’ve not earned at least what the standard deduction is plus some.

My tsp was a roth account also.