This type of IRA allows a parent, legal guardian or even an entity such as a corporation or a tax-exempt organization to make contributions (within certain limits) on behalf of a designated beneficiary such as a child or grandchild that is under the age of 18.
- Tax-free growth
- Parent controls account until child reaches age 30
- Contributions may be made by individuals, corporations or non-profits
- Available to persons under the age of 18
- Maximum annual contribution of $2,000 per child
- Annual contributions are not tax-deductible