[quote=SK in CV][quote=flu][quote=SK in CV]It’s a great idea. Almost no downside. If I had lots of extra money and my kids didn’t need today what little I do give them, I’d do it in a heartbeat. My brother (a managing director at a national tax and consulting firm) who does have plenty extra and doesn’t need to worry about his own retirement, has been doing it for his two daughters for more than a decade.[/quote]

I was hoping you would chime in on this. Thank you.
Now the bigger issue is that I need to figure out. How do I give my kid a “job” at this age…lol….

You said “almost no downside…”

Ok, almost… What are the downsides in your opinion…..[/quote]

The accounts belong to the kids. If they’re over 18, they don’t need your permission to take the money out. We always hope our kids are going to act responsibly, but we never know for sure. Other than that possibility, I can’t think of any downside.[/quote]

IF it’s the same rules as for UTMA, then I think in CA the age is 21. I guess the difference is that for a UTMA/UGMA, until that age, I think technically youcan withdraw from that account, as long as that withdraw is “for their benefit”. So if your kid is out of control at age 20, you have that option. I guess for the roth, that wouldn’t be possible, at least for the earnings portion without paying the penalty.