AI responses may include mistakes. For financial advice, consult a professional. Learn more
Starting a Roth IRA isn't just about the math; it’s about the habit. By opening one today, you aren't just saving for a distant retirement—you’re building a foundation of financial independence that will serve you for the rest of your life.
A common myth is that Roth IRA money is "locked away" until age 59½.
: Every dollar earned through interest or stock gains grows entirely tax-free . When you retire, qualified withdrawals are also tax-free. 2. The Golden Rule: Earned Income
The Power of the Teen Roth IRA: Building a Financial Gallery for Your Future
Since minors cannot legally open investment accounts themselves, a parent or guardian must set up a custodial account .
: For 2026, the limit is $7,500 or 100% of your earned income , whichever is less.
: Parents can contribute on a teen's behalf . If a teen earns $1,000 at a job and spends it, a parent can still put $1,000 of their own money into the teen’s Roth IRA. 3. The "Gallery" Effect: Compound Interest in Action