How to Secure Your Child's Financial Future by Jumpstarting Retirement Savings
Wednesday, 20 March 2024, 08:00
3 Ways to Jumpstart Your Child's Retirement Savings
Introduction
Retirement savings for children can be kickstarted with smart investments for a secure financial future.
1. Custodial IRA
- Custodial IRA: Allows children to own and contribute to an IRA for their retirement.
- Tax Benefits: Roth IRAs offer tax advantages for young workers.
2. Custodial Brokerage Account
- Brokerage Account: Offers flexibility but fewer tax benefits compared to IRAs.
- Contributions: Flexibility in contributions and withdrawals.
3. 529 Account
- 529 Account: Originally for education, now can aid in retirement savings.
- Rule Change: Rollover up to $35,000 in leftover funds to a Roth IRA.
Explore these options to secure your child's financial future and ensure a better retirement.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.