Anonymous
05/22/2026 11:52
Subject: Re:If your kids have UTMAs
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Kids are 18, 17, 14
Each have ~55k fidelity UTMA; 255k ROTH; 350k 529
Wow - how did their Roth’s get that funded / big at such a young age?
Inherited Roth passed from paternal grandmother (husbands mother, required lawyer, paying taxes & I don’t even know or understand what, but it’s there)
Oh well that certainly explains it. Keep in mind, a minor who inherits a Roth IRA must take RMDs until they reach age 21, after which they are subject to the 10-year rule, requiring the account to be fully distributed within 10 years of reaching that age.
The rules are different if the deceased was not the parent.
Anonymous
05/22/2026 11:38
Subject: Re:If your kids have UTMAs
Anonymous wrote:Anonymous wrote:Anonymous wrote:Kids are 18, 17, 14
Each have ~55k fidelity UTMA; 255k ROTH; 350k 529
Wow - how did their Roth’s get that funded / big at such a young age?
Inherited Roth passed from paternal grandmother (husbands mother, required lawyer, paying taxes & I don’t even know or understand what, but it’s there)
Oh well that certainly explains it. Keep in mind, a minor who inherits a Roth IRA must take RMDs until they reach age 21, after which they are subject to the 10-year rule, requiring the account to be fully distributed within 10 years of reaching that age.
Anonymous
05/22/2026 10:33
Subject: Re:If your kids have UTMAs
Anonymous wrote:Inherited Roth passed from paternal grandmother (husbands mother, required lawyer, paying taxes & I don’t even know or understand what, but it’s there)
Don’t they have to empty within 10 years?
Yes but they can let it grow until the last second.
What a great legacy.
Anonymous
05/22/2026 08:48
Subject: Re:If your kids have UTMAs
Inherited Roth passed from paternal grandmother (husbands mother, required lawyer, paying taxes & I don’t even know or understand what, but it’s there)
Don’t they have to empty within 10 years?
Anonymous
05/20/2026 13:24
Subject: Re:If your kids have UTMAs
Anonymous wrote:Anonymous wrote:Anonymous wrote:Kids are 18, 17, 14
Each have ~55k fidelity UTMA; 255k ROTH; 350k 529
Wow - how did their Roth’s get that funded / big at such a young age?
Inherited Roth passed from paternal grandmother (husbands mother, required lawyer, paying taxes & I don’t even know or understand what, but it’s there)
Ah makes sense, great legacy.
Anonymous
05/20/2026 13:12
Subject: Re:If your kids have UTMAs
Anonymous wrote:Anonymous wrote:Kids are 18, 17, 14
Each have ~55k fidelity UTMA; 255k ROTH; 350k 529
Wow - how did their Roth’s get that funded / big at such a young age?
Inherited Roth passed from paternal grandmother (husbands mother, required lawyer, paying taxes & I don’t even know or understand what, but it’s there)
Anonymous
05/20/2026 11:55
Subject: Re:If your kids have UTMAs
Anonymous wrote:Anonymous wrote:Kids are 18, 17, 14
Each have ~55k fidelity UTMA; 255k ROTH; 350k 529
Wow - how did their Roth’s get that funded / big at such a young age?
I would question the Roth number as well unless they actually had significant earned income at a young age.
Anonymous
05/20/2026 11:49
Subject: Re:If your kids have UTMAs
Anonymous wrote:Kids are 18, 17, 14
Each have ~55k fidelity UTMA; 255k ROTH; 350k 529
Wow - how did their Roth’s get that funded / big at such a young age?
Anonymous
05/20/2026 11:41
Subject: If your kids have UTMAs
Anonymous wrote:If they spend it, that's a lesson, no?
Yes, a lesson I learned the hard way. I’d never give my kids large sums of money when they are young and irresponsible.
Anonymous
05/20/2026 11:40
Subject: If your kids have UTMAs
If they spend it, that's a lesson, no?
Anonymous
05/19/2026 18:40
Subject: Re:If your kids have UTMAs
Kids are 18, 17, 14
Each have ~55k fidelity UTMA; 255k ROTH; 350k 529
Each have ~55k fidelity UTMA; 255k ROTH; 350k 529
Anonymous
05/19/2026 15:48
Subject: Re:If your kids have UTMAs
Anonymous wrote:Anonymous wrote:Kids ages 17 and 19
Each has about $75,000 funded from inheritance from one of their grandparents
Yes, they know about it and know the balance. They will receive the money at 21.
The money is for their future. They have 529s to cover college costs. We are committed to purchasing their first car and paying for wedding or downpayment on a house.
We have talked about investing with them since they were small. Both kids are happy for parents to handle the accounts.
We have money check-ins every quarter that started when oldest was 14 and working a part-time job. They know how their UTMA, 529's and Roth IRA's are invested. We go over the balances and any questions each quarter. We understand that this may not click for them until they are mid 20's.
You know at 21 they can spend it on hookers and blow right? They don't have to use it on a downpayment or whatever you think they should use it on.
PP here. Yes, we know. We want them to keep it invested until they graduate college. The desire from grandparent that died was that they use it for travel and they are aware. They are set to receive a much larger amount from the other grandparent. The conversations about investing are mainly to prepare them for that happening. In-laws do/did not believe in trusts and want all grandkids (5) to receive the money immediately. We had to explain to FIL that he would not be giving our teens the money directly when MIL died two years ago.