Roth IRA for kids: Benefits, rules, and how to set one up - Business Insider

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Opening a Roth IRA for your kids offers investment options, tax-free growth, and a great lesson in how to save

the Roth IRA

"We commonly see business owners use this tactic because they can put their children on the payroll," Davis says. "One idea that we've seen families implement that seems to be a good motivator is to implement matching funds," says Davis. "Only invest for a child what they are willing to invest themselves." So, for example, if your kid is willing to sock away $3,000, you can kick in another $3,000 to max out the contribution.: Above $208,000 annually and $140,000 in 2021. But in this case, no worries if your income is above the threshold.

 

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