Quote:
Originally Posted by jdubya
So i just got a $2900 check from the stimulus bill I guess. I dont need it personally but I have a 16 year old daughter and thought I would put this in as a starter sum for investments for her. Is she too young for a ROTH IRA? What kind of account would some of you do for your kid? We already have an established college fund for her.....I figured I wanted to start her on a retirement or long term investment fund.
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Retirement would be great. Lew probably knows more than I do about the restrictions on Roth but I’m guessing you do have to have earned income to start one.
If she doesn’t then a traditional IRA would be fine. You can always roll that to a Roth later, it’s just the value of the traditional IRA will be taxable on the distribution. Unless they change the rules in the next 50 years before she takes it out.
That’s a hell of a thing you’re doing for your daughter.