Solo Teen Ira β
They can contribute 100% of their earnings up to the annual limit ($7,000 for 2024/2025). π° Roth vs. Traditional: Why Roth Wins
If the teen is self-employed (babysitting), keep a simple log of dates, jobs, and payments in case of an IRS audit. solo teen ira
Starting at age 15 versus age 25 creates a massive difference in final wealth due to compounding. Starting Age Monthly Contribution Total at Age 65 (7% Return) $524,000 25 $262,000 They can contribute 100% of their earnings up
Wages from a part-time job (W-2), or 1099 income from "gig" work like babysitting, lawn mowing, or dog walking. keep a simple log of dates