Custodial IRAs (such as a Custodial Roth IRA or Custodial Traditional IRA) can be modeled in AdviserGo to reflect a minor child’s retirement savings that are legally owned by the child but managed by an adult custodian. AdviserGo does not have a unique “custodial” account type, but you can accurately represent this account structure using the steps below.

When to Use This Setup

Use this approach when:

• The client is contributing to an IRA on behalf of a minor child.
• The funds belong to the child, not the parent.
• You need contributions, growth, and future withdrawals to reflect on the child’s timeline.

Step-by-Step: Adding a Custodial IRA in AdviserGo

1. Navigate to the Child’s Profile

1. From the Dashboard, open People (the family icon in the left menu).
2. Select the child who will own the account.
   • If the child is not yet added, create a new dependent by entering their age or birth year.

This ensures that the IRA is correctly tied to the child’s lifetime and ownership.

2. Add the Retirement Account

1. Open the + Add button in the bottom right.
2. Select Investments → Retirement Accounts.

1. Choose either:
   • Roth IRA
   • Traditional IRA
2. Enter the following details:
   • Owner → Select the child.
   • Account Name → e.g., “Custodial Roth IRA – (Child Name)”.
   • Current Value → Enter the amount currently held in the account.
   • Growth Rate → Adjust if needed or leave at the default assumption.

3. Add Contributions to the Account

1. Go to Contributions within the IRA entry.
2. Click Add Contribution.

1. Set:
   • Payer → Will be the child.
   • Amount → Annual contribution.
   • Timing → Select start and end years (example: ages 12–17).
   • Funding Source → The child's cash flow (e.g., “Current Earnings” or "Savings").

Adding Child Employment to Fund a Custodial IRA

Custodial IRAs must be funded using the child’s earned income. In AdviserGo, this is modeled by adding employment income directly to the child’s profile and then linking IRA contributions to that income.

This ensures the plan reflects IRS contribution rules while keeping ownership correctly assigned to the child.

When to Use This Setup

Use this approach when:

• A child has earned income (W-2, 1099, or self-employment)

• The IRA is owned by the child but managed by a parent or guardian

• Contributions should be limited to the child’s earnings

Step 1 — Add Employment Income for the Child

1. Navigate to the Dashboard.

2. Click the Plus (+) button.

3. Select Income.

4. Choose Employment Income.

5. Set the Owner to the child.

Enter the following details:

• Employer Name (optional)

• Annual Income Amount

• Start Age / End Age (for example, ages 14–18)

• Growth Assumption (optional)

This income represents the child’s earned wages and establishes eligibility to fund the IRA.

FAQs

Why isn’t there a “Custodial IRA” account type?

AdviserGo models ownership through people records, not account labels. By assigning the account to the child, the model fully reflects a custodial IRA without needing a dedicated account type.

Can a custodial IRA be transferred to the child at 18 or 21?

Yes. In AdviserGo, ownership already belongs to the child, so no transfer event is required.

Can withdrawals be modeled earlier (e.g., penalty-free exceptions)?

Yes—use a What-If Plan and manually add withdrawals as needed using Transfers or Withdrawals.