Fund grandchild's retirement tax-free from birth with age-18 access risk

Fund a grandchild’s retirement tax-free from birth — if you can trust an 18-year-old with the money

Parents and grandparents can establish tax-free retirement accounts for grandchildren starting from birth. The strategy allows for long-term, tax-advantaged growth of funds dedicated to retirement. However, this approach comes with a significant risk: once the grandchild reaches age 18, they gain control of the money and could potentially use it for purposes other than retirement. The success of this strategy depends on the trustworthiness and financial responsibility of the young adult at the age of majority.