I have been reading increasing information on starting kid's with their own Roth IRA accounts so that at a young age they can definately benefit from long term return. It didn't even occur to me two years ago that I would be one of the few people around my area to open a Roth IRA account for my daughter. I guess that the ah ha moment just occurred to me to do it and it just made so much sense(Parents open bank accounts all the time for their kid's so why not an IRA).
My reasoning for doing this is, my daughter was and still is in college and has a small part time job which barely covers her living expenses. So, I just thought that it would be a good idea to just get her started. I don't fund her account to the max every year. I put in just about what she earns in a year. I will keep putting money in until she is able to fund her Roth IRA herself. Thereby taking full advantage of her age and her retirement date. She should be able to accumulat a nice sum by then.
Roth IRA's for Kid's
November 26th, 2007 at 12:28 am
November 26th, 2007 at 01:49 am 1196041799
Just to be clear, though, a child can only have an IRA in his name if he has earned income and can only contribute up to the amount earned. So you couldn't put $4,000 in your daughter's account if she only earned $2,000, for example.
November 26th, 2007 at 02:21 am 1196043680
November 26th, 2007 at 04:27 pm 1196094455
November 26th, 2007 at 06:48 pm 1196102905
November 28th, 2007 at 03:14 am 1196219657