How did this happen? My tiny bundle of joy has morphed into a feisty, fun loving, intelligent and responsible teenager with a job! When Luci approached me last summer and voiced her desire to get a job, one of the first things I thought of was – time to open a Roth IRA. This is one of the many perks of working at Bartley Financial with our diverse team of financial and tax geeks! My colleague, Joanne, wrote a very easy to follow blog post a few years back about how it’s never too early to start saving for retirement, highlighting the advantages of opening a Roth IRA for your teenager. For all the parents out there whose teens are working, I want to re-share this goldmine of information. HERE is a link for your reading enjoyment!
Here are a few updates and takeaways from Joanne’s blog post:
- Roth IRA withdrawals in retirement are tax-free!
- Maximum contribution for 2023 under the age of 50 is $6,500 ($7,500 if 50 or older).
- Owning a Roth IRA will not affect a student’s financial aid eligibility.
- Total contribution to your teens Roth cannot exceed their earned income for the year.
- Show your teen the twin sisters graph in my colleague Joanne’s Roth IRA article, highlighting the benefits of saving early!
I’m so proud of my daughter for working hard over the last year while juggling school work and other academic interests. I’m in awe as she continues to find her way in this world of ours that is way more complex than I remember it being when I was a teenager. My goal is to always provide her with the information she needs to help her in making good decisions, including sending her the link to the Roth IRA Account blog post linked above!
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Bartley Financial has an experienced team of CPAs and CFPs® (Certified Financial Planners®) dedicated to helping clients manage their investment portfolios, plan for retirement, strategize taxes, or execute any other initiatives in pursuit of optimum financial health and minimal financial stress. From our offices in Andover, MA, and Bedford, NH, we work to ease clients’ financial concerns, strengthen their portfolios, and assuage their worry that they don’t know what they don’t know.
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