Investing for my son

[vash87]

Think it would be possible to get an RA for a under 18yo?

I like the idea.

Thanks. The idea is not without its drawbacks but I think it's pretty cool too. You can have an RA at any age.

 

[vash87]

I'm not 100% sure about this let's imagine a scenario where you put in R20 000. It could be seen as a donation from your side, free of donations tax. The contribution to the RA would be deemed to come from your son even though he's only 1. Any retirement annuity contributions that don't qualify as a tax deduction are rolled over to subsequent years so it's possible that when your son is older and starts paying tax, he can then deduct the R20 000 from his taxable income. The only thing is that taking inflation into account, even R20k would probably be a relatively small deduction - though at least its something.