How can a first time earning kid open a retirement account?
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Anonymous
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We'd like to encourage this, but as a young earner, DC's wages are low and limited to summer.
Any suggestions? Thanks! |
Anonymous
| Why not call Vanguard and ask if he can open an IRA? You could "match" (outside the IRA) some of what he puts in. |
Anonymous
| I opened Roth IRA accounts form my kids when they turned 18, which was the youngest age I could find to have the accounts in the kids' names. |
Anonymous
| Fidelity and Vanguard have 18 as the minimum age requirement. |
Anonymous
| I think Charles Schwab will let you open a Roth for a minor. Make sure you keep tax records, and remember- even if your kid spends all he earns on video games and Slurpies, you can put your money into his IRA up to the amount actually earned. |
Anonymous
| Check with your credit union |
Anonymous
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My parents opened a Roth IRA for our oldest child last year (when she was 19) and put $5K in it. I think they plan to add to it each year, and plan to do the same for all grandchildren as they mature.
They also pay dc's college tuition (we pay for books, living expenses). Dc is the eldest of their 8 grand kids. Yes, we know how lucky we are. |
Anonymous
Yes, thank you! DC is very young. Total earnings only a couple hundred from summer jobs. Vanguard or Fidelity (I forget which) said first I had to open a brokerage account and then I could do it. I have other non-brokerage accounts with them. I couldn't remember what they said it might be possible to open though. Thanks for all suggestions. So I need to decalre the couple of hundred on our family taxes, as DC is a dependent? TIA |
Anonymous
| IANACPA, but I'm pretty sure you'll need to file a separate 1040EZ for him, and tick the box saying he's listed as a dependent on someone else's return. Your return covers only your income and a spouse's, if applicable. |