Guardian IRA

DEFINITION of 'Guardian IRA'

An IRA held in the name of a legal guardian or parent on behalf of either a child under the age of 18-21 (depending on state legislation) or an individual who is incapable of handling finances due to physical or mental disability.

BREAKING DOWN 'Guardian IRA'

The guardian is responsible for signing documents on behalf of the minor or special-needs adult. The responsibilities of the guardian cease once the child is no longer a minor or until the adult is able to handle his or her finances.

RELATED TERMS
  1. Natural Guardian

    A child's parent. In divorce situations, the parent with custody ...
  2. Guardian

    An individual who has been given the legal responsibility to ...
  3. Education IRA

    A savings plan for higher education. Parents and guardians are ...
  4. Custodial Account

    1. An account created at a bank, brokerage firm or mutual fund ...
  5. Special Needs Child

    Children who have been determined to require special attention ...
  6. Kiddie Tax

    A special tax law created in 1986 imposed on individuals under ...
Related Articles
  1. Professionals

    Living Wills, Guardianship, and Conservatorship

    Living Wills, Guardianship, and Conservatorship
  2. Professionals

    Guardian

    Guardian
  3. Taxes

    Designating A Minor As An IRA Beneficiary

    Leaving liquid assets like cash or securities to minors can be a complicated procedure. Make sure you understand how your gift will be distributed, managed and taxed.
  4. Retirement

    Advanced Estate Planning: Child Care Documents

    By Steven Merkel Are you confident that your child care provider or babysitter would be capable of making informed decisions for your child in a medical emergency? Most parents want the best ...
  5. Retirement

    Helping the Elderly with Finances: When to Step In

    Knowing when to take over the financial affairs of elderly parents can be difficult. Here are six signs to look out for.
  6. Financial Advisors

    Top Financial Planning Issues for Older Parents

    Clients who have children later in life present an opportunity for advisors. Here are the key the financial planning issues that need to be addressed.
  7. Professionals

    Disability

    Disability
  8. Retirement

    Estate Planning: Introduction To Wills

    by Cathy Pareto, CFP®, AIF® (Contact Author | Biography) A will is a document that describes how you want your property and owned interests distributed after your death. Why You Need ...
  9. Budgeting

    Teaching Your Child To Be Financially Savvy

    If you start today, you can set your kids up for a lifetime of smart money management.
  10. Insurance

    Social Security Benefits for Children: How They Work

    There are millions of children in tough situations who receive Social Security benefits each month to help with finances. Here's who qualifies.
RELATED FAQS
  1. Can someone who is not yet of legal age open a brokerage account?

    An underage person cannot open a brokerage account on his or her own. However, it is possible for an underage person to have ... Read Answer >>
  2. I am only 17 years old. I don't have a job or pay taxes. Can I contribute to an IRA? ...

    You must have earned income (eligible compensation) to be eligible to contribute to a Roth IRA. Individuals who are eligible ... Read Answer >>
  3. Can my child have an IRA/Roth IRA?

    Explore the possibilities for establishing a traditional or Roth IRA for a minor child, and learn the necessary requirements, ... Read Answer >>
  4. Are Social Security survivor benefits for children considered taxable income?

    Learn why receiving Social Security survivor benefits on behalf of children does not affect income tax for a surviving parent ... Read Answer >>
  5. Can minors invest in mutual funds?

    Learn how UGMA or UTMA accounts including mutual funds can be set up for minors through a guardian who oversees the account ... Read Answer >>
  6. Can an IRA be used as security for a loan?

    The IRS prohibits the use of an IRA as security for a loan. If an individual borrows money against his or her IRA, the IRA ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center