Your teenager may not get rich mowing lawns or babysitting the neighborhood children, but contributing some of those after-school earnings to a Roth IRA can pave the road to a more secure financial future.
Any child with “earned income”, regardless of age, is eligible to contribute. Sure, Roth IRA contributions are not tax deductible but most kids pay little or no taxes anyway. Best of all, the money will grow tax-free for decades.
Even if your child does not receive a W-2 for their work, just keep a record of the dates and hours worked and the amounts earned. Your …Read More