For almost every teenager, the is the superior choice.
If a teen earns $2,000 and wants to spend it on a car, parents can "match" that amount by contributing $2,000 of their own money into the teen's IRA (as long as the total doesn't exceed what the teen earned).
Contributions are made with "after-tax" dollars. Since teens usually fall into the lowest tax bracket, they pay little to no tax now.
Every dollar earned via investment growth is withdrawn tax-free in retirement.
Ira - Solo Teen
For almost every teenager, the is the superior choice.
If a teen earns $2,000 and wants to spend it on a car, parents can "match" that amount by contributing $2,000 of their own money into the teen's IRA (as long as the total doesn't exceed what the teen earned). solo teen ira
Contributions are made with "after-tax" dollars. Since teens usually fall into the lowest tax bracket, they pay little to no tax now. For almost every teenager, the is the superior choice
Every dollar earned via investment growth is withdrawn tax-free in retirement. For almost every teenager