1. What are custodial accounts? How is a UTMA/UTGA different from a custodial IRA?
   
    
2. Who can open a Kiddie Roth IRA?
   
    
3. Who saves taxes using a Kiddie Roth IRA?
   
    
4. What kind of assets can you invest in via a typical Kiddie Roth IRA?
   
    
5. We learned that tax planning strategies typically involve one or more of the following: shifting across time, shifting across entities, shifting across jurisdictions, or changing the character of taxable income. Which one (or more) of these tax planning variables applies to the Kiddie Roth IRA strategy?
   
    
6. The author of the Money article emphasizes one particular idea - parents matching all or part of the money their kids earn at a summer or part-time job and agreeing to contribute those funds to the Roth IRA. Why do you think the author stresses this idea?
   
    
7. Describe the type of client that you might pitch this tax savings strategy to. What characteristics would the ideal client for this strategy have?
   
    
8. What are the potential risks involved in this strategy? What important information would you need to make sure the client understands before proceeding?

Answer rating: 100% (QA)

Custodial accounts such as UTMA Uniform Transfers to Minors Act or UTGA Uniform Gifts to Minors Act are accounts opened and managed by an adult custod... View the full answer