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Reply to "Investing inheritance for teens"
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[quote=Anonymous][quote=Anonymous]You could open a UTMA for them. They are more flexible than a 529 plan. Depending on where you live, you can manage and control the UTMA until they are 18 or 21. And the first $1300 of annual income in the account is tax-free. If they are teens and work, you could put it into a Roth IRA for them for up to the amount they earned in a tax year (with a cap of $7k per year) - then they get tax free growth plus it is eventually withdrawn tax-free. I have a few friends who do this - they let the kids spend what they earn, but they make a Roth IRA contribution for them up to their earnings or $7k, whichever is lower. [/quote] OP here. I thought about an IRA but they don't have jobs (they are 12 and 14). DH owns his own business and I read something about "hiring" the kids but I don't know that there is much we could realistically say they are doing an employees. [/quote]
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