If your teenager is working this summer, you should consider teaching them about saving for retirement early! You and/or your child could contribute up to $5,500 for 2017 to a Roth IRA, but not more than their earnings for the year. The beauty of a Roth IRA is that the earnings grow tax-free, and by starting early the power of time and compounding can be huge! In some situations, it’s not necessarily a requirement to keep the account untouched until retirement. One of the benefits is that if he or she needs the money to help buy his or her first home, $10,000 can be taken out tax-free.
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