If your child has a summer
job, consider opening an IRA for him or her. According to the tax rules, anyone
under age 70½ who has earned income can contribute to a traditional IRA.
There's no age restriction for Roth accounts, though the amount of the
contribution phases out at higher income levels. The advantage of a Roth over a
regular IRA is that withdrawals in retirement will be tax-free. The
contribution limit for both kinds of IRA for 2015 is the lesser of the child's
earned income or $5,500.
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