Roth IRAs for Your Children
Do you want to help your kids get off to a good start – even more than you likely already have? If they have earned income, help fund their Roth IRAs! What better gift to get your kids off and running than with an account that grows tax-free and comes out tax-free in retirement. My wife and I have been doing this for our kids (who are now in their 20s) for quite a few years and they’re starting to accumulate a nice nest egg in those Roth accounts.
If you can’t afford to fund it entirely, offer to match your kids’ contributions to the account, dollar for dollar, up to $1,000 (as an example). This is a good way to encourage them to begin saving for their financial goals.
Look at it this way – the US government doesn’t give you much tax free, so help your kids to capitalize on this golden opportunity.