How to set up Roth for kid

I like the concept of starting kids in a Roth when they start to have some earned income. My seventeen year old daughter earned about $2600 last year (on W2) and I am trying to set up a Roth for her using some "grandma money".

I even get the part that it probably needs to be a custodial account until she is 18. However I can't find anyone to set this up for me.

Both Scottrade and Fidelity reps yesterday told me that minors could not have a Roth, period. The Scottrade rep wanted to set up a custodial account and then said up to $5K could be transfered to a Roth in 08 (the year she turns 18). Of course at that time it would be subject to her 08 earned income limit, which would preclude any Roth contributions based on her 08 income. When I pointed this out and that she probably would not have $5K income in 08 he said he was not allowed to give tax advice.

I thought I understood the concept, but at this point I need specifics and advice. Thanks

Continue to check around for a custodian that will set it up for your daughter. She certainly seems to qualify.

http://www.fairmark.com/rothira/minors.htm

setting this up is a no-brainer. this "advice" is what you typically will get from a brokerage (even more a low fee brokerage).

ask your friends for recommendations for a comprehensive financial planner they have used and found value in working with. it is a simple process, but you have to know what you are talking about.

Keep shopping.
If she has earned income, she is eligible.
Fidelity might have a policy against accounts, but I'm sure somebody out there will set one up for you.