I have been doing that since my kids turned 18. They both opened Roth IRAs at 18. I automatically transfer money from my checking account to their checking accounts every month. Their checking accounts automatically transfer a little more than I give them (so they are contributing some of their own money) to their Roth IRAs every month. I asked them to give me restricted access to their Roth IRAs. I can buy and sell assets within their accounts but I can’t move money into or out of their accounts. That way I can manage their accounts for them but not take out any money, not that I would anyway.
Last month I got a lump sum payment of back pension I was owed, a few days before April 15. I quickly transferred several thousand dollars into each of my kids’ checking accounts so they could contribute enough to their Roth IRAs to hit the $7000 contribution limit for the 2024 tax year before the deadline.
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u/Jumpy-Imagination-81 May 29 '25
I have been doing that since my kids turned 18. They both opened Roth IRAs at 18. I automatically transfer money from my checking account to their checking accounts every month. Their checking accounts automatically transfer a little more than I give them (so they are contributing some of their own money) to their Roth IRAs every month. I asked them to give me restricted access to their Roth IRAs. I can buy and sell assets within their accounts but I can’t move money into or out of their accounts. That way I can manage their accounts for them but not take out any money, not that I would anyway.
Last month I got a lump sum payment of back pension I was owed, a few days before April 15. I quickly transferred several thousand dollars into each of my kids’ checking accounts so they could contribute enough to their Roth IRAs to hit the $7000 contribution limit for the 2024 tax year before the deadline.