Can a child's social security benefit be invested in their roth IRA?

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tpom16
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Joined: Sat Jun 11, 2016 4:49 pm

Can a child's social security benefit be invested in their roth IRA?

Post by tpom16 » Sat Aug 01, 2020 4:45 pm

Hello - A relative of mine is going to claim social security benefit for her son as minor beneficiary of the father who is receiving SS $. Can she set up a Roth IRA to invest for the child? if not Roth can it be a brokerage investment account? or is it just strictly for the child's expenses and 529 account?

Thank you!

Broken Man 1999
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Location: West coast of Florida, inland on high ground!

Re: Can a child's social security benefit be invested in their roth IRA?

Post by Broken Man 1999 » Sat Aug 01, 2020 4:58 pm

Does the child have earned income? SS is not earned income.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain

Topic Author
tpom16
Posts: 26
Joined: Sat Jun 11, 2016 4:49 pm

Re: Can a child's social security benefit be invested in their roth IRA?

Post by tpom16 » Sat Aug 01, 2020 5:03 pm

Broken Man 1999 wrote:
Sat Aug 01, 2020 4:58 pm
Does the child have earned income? SS is not earned income.

Broken Man 1999
No he does not. SS is not earned income that is what I thought. What about a brokerage investment account?

lakpr
Posts: 5715
Joined: Fri Mar 18, 2011 9:59 am

Re: Can a child's social security benefit be invested in their roth IRA?

Post by lakpr » Sat Aug 01, 2020 5:07 pm

tpom16 wrote:
Sat Aug 01, 2020 5:03 pm
Broken Man 1999 wrote:
Sat Aug 01, 2020 4:58 pm
Does the child have earned income? SS is not earned income.

Broken Man 1999
No he does not. SS is not earned income that is what I thought. What about a brokerage investment account?
Yes, you can use a UTMA account.

Broken Man 1999
Posts: 4672
Joined: Wed Apr 08, 2015 11:31 am
Location: West coast of Florida, inland on high ground!

Re: Can a child's social security benefit be invested in their roth IRA?

Post by Broken Man 1999 » Sat Aug 01, 2020 6:26 pm

lakpr wrote:
Sat Aug 01, 2020 5:07 pm
tpom16 wrote:
Sat Aug 01, 2020 5:03 pm
Broken Man 1999 wrote:
Sat Aug 01, 2020 4:58 pm
Does the child have earned income? SS is not earned income.

Broken Man 1999
No he does not. SS is not earned income that is what I thought. What about a brokerage investment account?
Yes, you can use a UTMA account.
This, yes. Roth IRA, no.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain

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