How Much Should I Contribute to My Child's Roth IRA in 2023?
Contributing to a Roth IRA (individual retirement account) on behalf of your offspring while they are still children may not be a top-of-mind priority for most parents, but it's one of the best moves you can make to help your child learn about the power of investing. If your child has earned income, now is the time to think about how Roth IRA contributions could help set them up for long-term financial security.
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For anyone who qualifies to fund one, a Roth IRA can be used to create a source of income you can tap during retirement. The contributions made to those accounts are after-tax dollars -- the government gets its cut during the year you earned the money -- but your investments, in whatever assets you choose, grow tax free, and your withdrawals in retirement are likewise tax free.
Source Fool.com
