Roth IRA for grandchild
Can you tell me if I can open a Roth IRA for my grandchild as a college graduation gift. If I can what is the process? Thank you.
BTW, I love you column and your WGN segments….. never miss them…. Thanks again
Terry Says
Your grandchild cannot have a Roth IRA account until he/she has earned income! A job!
That’s a great idea — but instead of opening an account now, you should tell the grandchild that when he/she does get a job, you will match up to $1,000 of THEIR contribution to a Roth IRA, for two or three years. That should really motivate them to save!
The max they can contribute to a Roth is $7,000, assuming they earn that much.
And the place to open the account is Fidelity.
And the Roth IRA should be invested in teh S&P 500 stock index fund.
