Roth IRA👇🏻

🏦 A Roth IRA is an Individual retirement account that offers tax-free growth and tax-free withdrawals in retirement.

💰Roth IRA rules dictate that as long as you’ve owned your account for 5 years & you’re age 59½ or older, you can withdraw your money when you want to and you won’t owe any federal taxes

👉🏼 With a custodial Roth IRA, you can help your children start saving for retirement as soon as they begin earning income.

🚨 I recommend consulting a tax professional to ensure you’re following all the rules & doing it correctly!

FOLLOW ALONG for all the ways to make $$ 🤑…(read more)

LEARN MORE ABOUT: IRA Accounts

INVESTING IN A GOLD IRA: Gold IRA Account

INVESTING IN A SILVER IRA: Silver IRA Account

REVEALED: Best Gold Backed IRA

As a parent, one of your primary goals is to provide for your children and set them up for success in the futures. While you may be able to help them with certain aspects of their lives, becoming financially independent is one area where your child will largely have to fend for themselves. However, there is a way for you to help them save money and build wealth even before they enter the workforce.

The custodial Roth IRA is an investment option available for children under the age of 18. This type of IRA allows parents or legal guardians to open a Roth IRA in the child’s name and act as the account custodian until the child reaches the age of majority. The best part of this investment account is that it grows tax-free, which can significantly increase the account’s value over time.

If you’re interested in setting up a custodial Roth IRA for your child, here are the steps you should follow:

1. Choose a broker or provider: You’ll need to find a broker or provider that offers custodial Roth IRAs. This is a relatively easy process as many reputable brokers offer this type of account. Some brokers like Vanguard, Fidelity, and Charles Schwab are often highly recommended by industry experts.

2. Open the account: You’ll need to provide the necessary information and documentation to open the account, including your child’s Social Security number, date of birth, and proof of relationship to the child. You’ll also need to make an initial contribution, which can be as low as $25 in most cases.

3. Fund the account: Once the account is open, you can make contributions up to the annual limit. The contribution limit for 2021 is $6,000 or 100% of earned income, whichever is less. The good news is that you can make contributions on behalf of your child, meaning they don’t have to be working to contribute.

4. Invest wisely: The custodian of the account is responsible for investing the funds in the account. Therefore, it’s important to choose appropriate investments based on your child’s age and risk tolerance. Since this account can grow tax-free, it’s an excellent opportunity to invest in high-growth assets like stocks or mutual funds.

5. Keep the account active: You’ll need to monitor the account’s activity and keep it active until your child reaches the age of majority. Once your child reached adulthood, they can take over the account, continue to contribute and make withdrawals.

Setting up a custodial Roth IRA for your child is an effective way to make them “rich” in the long run. The power of compounding returns over time can provide your child with a substantial amount of tax-free investment income, even if they only make the minimum contributions. This is an investment that can reduce the financial burden on adult life and prepare them for a prosperous future.