Sunday, January 28, 2007

Opening a UTMA - IPod Account Bonus

In two earlier posts, I wrote about opening a UTMA (Uniform Transfer to Minors Account) account to fund our daughter's allowance (with tax free earnings) and on how I was getting bonuses for opening new accounts. As always, I am not a fan of opening an account to get a bonus. However, this another case of needing a new account and getting the most from opening one.

I have decided to proceed with the plan I outlined on using a UTMA to fund our daughter's allowance. The benefit is that all the earnings in the UTMA account will be tax exempt (up to $850) and my interpretation is that an allowance is an appropriate use of the funds that enable the account to maintain tax exempt status. In looking for a new account, I recall that TD Ameritrade had previously offered a free IPod promotion for new account (not new person) openings. It turns out TD Ameritrade is again offering the same promotion, with a $10,000 deposit for 9 months. The offer expires on February 28, 2007.

This is a terrific win/win/win. First, our daughter's allowance will be funded until she is 18. Second, we will get an IPod Nano, which my spouse would like to use. Third, I will be sheltering about $500 of income from taxes.

Here is the link to the TD Ameritrade IPod Nano Offer. Also, if you already have a hard copy application, the Promo code is 931, which can be written in any open space at the top of the application. Call TD Ameritrade at 1-800-934-4448 to confirm. I am passing this information along as a service to our Personal Finance community. Disclosure: I am not receiving any compensation for this post nor any referral fee for the link or Promo code.


For more on New Beginnings, check back every Sunday for a new segment.

Photo Credit: TD Ameritrade Link for IPod Nano Offer

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC

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