Posted in Finance, Accounting and Economics Terms, Total Reads: 400
Definition: Guardian IRA
An Individual Retirement Account (IRA) that is held in the name of a parent or a legal guardian on behalf of a minor (child under the age of 18-21 years, depending on the state legislation) or an individual suffering from physical or mental disability (causing incapacity to handle finances) is termed as a Guardian IRA.
In such cases, the guardian is responsible for performing mandatory requirements like signing documents on behalf of the minor or the individual. Once the child is no longer a minor or the individual is gains capacity to handle finances, the responsibilities of the guardian cease to exist for handling the account.