If your child has a job this summer, encourage him or her to set up an IRA. The amount that can be contributed is $5,500 or the child’s earnings, whichever is less. If you wish, you can even provide the cash for the IRA and let your child spend his or her earnings. Roth IRAs are generally a smarter choice for children than traditional IRAs.
IRAs started early can grow to quite a substantial amount over a working career. Please call the office if you have any questions.
Tags: IRA accounts
Written by: Doug Rodrigues