What Are Custodial ROTH IRA’s For Children?
Opening a Roth IRA account for your child can benefit them greatly when they reach retirement. The beauty of compounding interest combined with their youth and the earning years ahead of them can set them up nicely before they even are truly aware of the importance of building a good nest egg.
While there are 2 different retirement savings options for children, a ROTH benefits those who will be in a higher tax bracket in their later years. A custodial ROTH IRA is a great first tool in teaching your children financial literacy, starting with the basics of savings and compounding interest.
Though kids may not care too much about retirement while they are working their first jobs, they will be extremely thankful to you for thinking about their future and setting them on the path of financial wellness early. Check out our latest video on Custodial ROTH IRA’s for kids.
We’ll cover the basic rules, contribution limitations, potential tax issues and more.